Bit coin? Should one invest in bit coin?
As everything around us is going digital, time has finally come when we start to invest in crypto currency. So, what is bit coin? Bit coin is an alternative form of cash, a virtual currency which can be used to make normal purchase of online products and services. Bit coins have a private code printed within them which help to secure them from nefarious activities.
In a simple language, BTC is just a small snippet of a computer program that is stored in our computer device or digital wallet. Most wonderful thing about bit coin is, unlike normal cash transactions, bit coins can be transferred from one account to another online either using an entire bit coin or a part of bit coin for the online transactions.
The transactions using bit coin are recorded on a public domain, which is popularly known as block chain that helps in increasing the transparency of the transactions and possessions.
There are few advantages of the block chain technology:
Over expenditure of the bit coins is restricted by preventing them to spend the coins which they don’t own
No duplicity of the bit coin is possible.
Now, the question is how to get bitcoins? There are three possible ways to posses bitcoins:
Purchasing bit coins, which will cost you as per the quantity of the bit coin you wish to purchase.
Selling products or services online and getting paid using bit coin.
Unlike real money, the creation of bit coin using computer systems is very much a reality.
Now the question which arises is should we invest in bit coin?
Bitcoin is currently trading at a very high price. With that being said it can race upto $20,000, but it is a far-fetched reality now. At such a high price, bit coin is expected to show a move up to $8,000 in the near future. There is a large investment which is linked with bit coin. Even though countries have banned it too, but there are places like Vanuatu which have made bit coin the legal currency. The global acceptance of bit coin is also in favor of its price soaring high in the long term. Moreover, bit coin works in the concept of supply and demand. Once when the supply of bit coin reduces, the price of the bit coins are expected to touch sky rocket.
It is the scarcity of bit coin that is making it an asset and one of the most valuable products in real time. Few years down the line, as cash transactions move towards online and digital currency becomes the new-gen currency, bit coin will be far ahead than other modes of transaction.
So, if you are a personal finance manager, or the CXO of a company, it is recommended to diversify your portfolio by allocating a portion of it to bit coin, monthly!