Bitcoin was nothing major in the previous years, yet with its prices in the market and hailed as the new asset class in digital currently, it is surely a thing now. It also got another boost as Fidelity, the blue chip brokerage house, allowed their customers to make bitcoin accounts.
Today, several people are calling for it and expect it to be higher. However, is it worth it? Should you buy bitcoin?
The Financial Industry and Major Investors Are Taking Bitcoin Seriously
Since it was created back in 2008, the largest boosters of bitcoin have been computer geeks as well as libertarians. However, recently, they have been joined by some mainstream entrepreneurs and investors who see bitcoin and some digital currencies as legitimate class like commodities, bonds or stocks. In fact, this year, popular names including Sequoia Capital and Andreessen Horowitz have bet on the hedge funds that are investing tons of money into the digital currency funds.
The financial infrastructure that supports digital currencies and bitcoin is rapidly maturing. The GDAX exchange of Coinbase has supported the margin trading since the month of March while Commodity Future Trading Commission gave green light for the companies to sell digital currency derivatives and options.
Others See Bitcoin as New Gold
There are so-called gold bugs who want to own precious metals for the reason that it’s an asset in which its value isn’t controlled by the governments. Even though the country is ravage by war, the gold’s value will remain. Bitcoin share some of its qualities because it exists in a decentralized computer network, which transcends the national borders and there’s no authority that could devalue it.
There’s Only a Limited Bitcoin Amount
If there’s one reason to buy bitcoins, it’s the fact that it is a valuable asset that only twenty-one million of them will come into the world and majority of them are here already. For people who are familiar with bitcoin, the number of the coins made by the process of mining drops by half each several years. Around eighty percent of bitcoins are mined already and no newbies will appear after 2040. The will continue to drive up demands, particularly if the central banks decide to buy them as foreign currency reserves.
Since it is all about computers and everything digital, bitcoin must be taken seriously and it can be a great investment for those who have been dealing with it for a long time as its fame continue to rise.