The emergence of the first virtual currency called Bitcoin caused a real stir in the market. Indeed, despite its young age, electronic money has already shown the world an unparalleled increase in value. In 2009, when the first Bitcoins appeared, crypto coins were valued at five cents. But after a few years, their price has risen to thousands of dollars per unit. Subsequently, the rate collapsed literally in one day to two hundred dollars, but at the present stage the price of the first cryptocurrency is gradually increasing and has already reached the $ 700 mark.
Overall, a high level of volatility is considered a key characteristic of a virtual currency. And potential investors who want to understand what Bitcoin is, whether it is profitable to do business with it, need to thoroughly study this unique phenomenon.
In a nutshell, this is virtual money that does not depend on political perturbations, economic crises and geographic location. Military coups or arbitrary actions of local authorities are not able to influence cryptocurrency. Its course is determined solely by the ratio of supply and demand.
The value of Bitcoin can be compared to precious metals or oil. The amount of cryptocurrency is limited to 21 million, and the mining process is in full swing. Therefore, the answer to the question of whether Bitcoin is profitable is quite obvious. Complex mathematical algorithms are used to create cryptocurrency, so it is very unlikely to be counterfeited. Thus, the amount of Bitcoins entering the market, as well as the speed of their production, are very limited. Therefore, its value will only increase over time.
The cryptocurrency has the following advantages:
Does not depend on inflationary processes. The cryptocurrency system is built on the production of a certain number of coins in a predetermined period of time. And this algorithm will remain unchanged until the last unit is created. Thus, the benefit of Bitcoin is its limited supply. Moreover, the rate of production is approximately equal to the activity with which gold is obtained. This state of affairs makes it simply impossible for inflation to occur, so virtual money is considered a more reliable asset than expensive metal.
The emergence in the future of an acute shortage of cryptocurrency. Sooner or later, the time will come when the last coin will be mined and the total amount of Bitcoins will stop increasing. This situation will lead to a shortage of cryptocurrency and a sharp jump in its price upward. Therefore, when purchasing Bitcoins today, the buyer makes a very correct investment decision, and very soon the future will show whether such an investment is profitable.
Complete confidentiality against the background of absolute transparency of financial transactions with cryptocurrency. At first glance, these two characteristics are incompatible, but not in the case of Bitcoins. This unique phenomenon successfully combines the ability to hide, at the request of the user, information about who made the payment and the data about its recipient. But the information itself about the operation performed will be available to the system participants.
For those who have not yet decided whether Bitcoin is profitable, a parallel should be drawn between virtual and ordinary money. It is worth noting that cryptocurrency has almost all the characteristics of traditional bills and coins. The only difference is the impossibility of physically touching them. And for all other positions, Bitcoins have already left fiat currency far behind.
Given the current situation, experts predict an even greater increase in the rate of the first cryptocurrency in the near future. Indeed, according to preliminary estimates, its cost today is at least two hundred dollars lower than the real one. Accordingly, users who purchase cryptocurrency now will be able to appreciate the benefits in Bitcoin in a short time.
Holders of virtual currency, unlike ordinary money holders, do not have to worry about various economic and political events. The same cannot be said about traditional currencies. Moreover, it is not only the payment units of the CIS countries that are characterized by instability. Also, the currencies of such world market leaders as America and the European Union are also highly dependent on various kinds of external circumstances. Any political instability or crisis in the economy can lead to a collapse in the financial market.
Therefore, the rhetorical question of whether it is profitable to buy Bitcoin today does not need a lengthy discussion. The answer is absolutely obvious. Thousands of people around the world are actively purchasing virtual currency, the value of which is steadily increasing. Only opponents of innovative technologies have doubts about the profitability of such investments. But progress cannot be stopped, and Bitcoins have already become an integral part of the modern world.
As noted above, virtual money has no limits and restrictions. It is this quality that ensures their complete independence from external influences. Even the great Bill Gates admitted that cryptocurrency is capable of making a real revolution in the modern world. The benefits of Bitcoin are primarily achieved due to its independence from modern political and economic systems. It is controlled exclusively by users and its rate depends on the level of demand.
A separate advantage is the lack of binding to the location of the holder of the cryptocurrency. Thus, its cost will not be affected by the political situation in a particular country, the presence of terrorists or the aggravation of the economic crisis. And the limited amount and ever-increasing popularity of virtual money will certainly lead to an increase in their rate. So is Bitcoin profitable? The answer is unequivocal - today it is one of the most promising investment instruments.