Is Bitcoin a Good Investment?
In early 2009 a brand new currency system was introduced to the global market – one that would open up a new channel of possibilities for traders, investors and buyers. Bitcoins are a type of digital currency that can be used to purchase anything that can be bought using legal tender, and as the coins have no definitive exchange rates they can be as expensive or cheap as the seller decides.
Although the majority of trades that took place just under a decade ago were personal in nature, many businesses soon grew wise to the potential and now thousands of practicing companies around the world utilise them to their fullest extent. One thing that sets this currency apart from others is the fact that once a particular amount of them have been produced, all manufacturing will cease entirely.
Right now, it’s been calculated that there are over 15 million coins in circulation – all of which are digital in nature and so cannot be duplicated, or replicated. This brings the total production rate to just under 75% and it’s estimated that in the next decade (or less), the final few coins will be mined (created) and this will mean that those in possession of the soon to be out-of-production currency will be in a great position to turn a profit.
Is Bitcoin a Good Investment for Individuals and Businesses?
As mentioned briefly above, once the final coins have been produced and introduced to the global market, there will be no others made. This in itself will mean that anyone in possession of the coins will be in a position to reap the rewards of owning an extinct form of currency (in the sense of production, but not in the sense of usability).
All coins will remain functional and as a result, they will still be viable tender that can be used to buy, trade and invest in a host of products and services. As things currently stand, many service providers that accept this form of payment can charge a rate that they see suitable for the level of service that they are providing.
What someone might charge 1 Bitcoin for, someone else may instead propose costs of 10 Bitcoins. The true power is in the demand for the currency itself and once the production has stopped, it’s all but guaranteed that owners and account holders will be able to sell their collection on for a substantial amount of profit.
As with all things – the more difficult something is to get hold of, the more valuable it will be within its respective marketplace. What that means is that if a buyer was to purchase a collection of coins right now they could certainly stand to benefit in the future, when the coins cease production and the value of each one skyrockets, as is expected.