Alright, so you're new to Bitcoin, and researching it on the internet isn't easy. There are so many sites, trying to lure you in to buy with them, or invest with them, or sign up with them and making promises that sound to good to be true, and that you're lost in a sea of confusion as to what bitcoin actually is and if it's even worth bothering with. But then you see the current price for Bitcoin is worth around 1000 USD, and you can't help but be curious as to WHY.
What on earth is going on? How can a digital currency, that has no apparent value, be worth 1000 USD? It doesn't make sense does it? Well, not if you're using the old paradigm of thought relating to capitalism and banking. Because Bitcoin and the current economy, are not the same thing. Bitcoin is its own economy. So that is the first thing you must understand. Bitcoin is not like trading USD for Pesos. Bitcoin is its own standalone economy with its own value. Therefore it is not bound to any one country. So if the american dollar crashes, bit coin may very well rise in value, or be unfazed by it. Because it doesn't answer to the government, or to the stock market. Bit coin in this sense, is kind of like gold, a commodity, because it's value isn't determined by the dollar. However, bitcoin differs than gold, because its free to trade from anyone to anyone, in small amounts, making it more and more like its own stand alone currency, worth as much as gold. You following?
Bitcoin is a genius innovative invention. It is a solution in times of economic crisis. In times of uncertainty, like we are seeing around the globe right now, from Brexit through Trump, and China, and Venezuela. Bitcoin is the solution for so many people to be able to move money freely without the stress of the economy. Bitcoin literally levels the playing field.
So why will Bitcoin change the world? Why should you, as someone contemplating buying into Bitcoin, take the plunge into the unknown? As we know, the world is moving more and more toward a cashless society, everyone pays with debit and credit, and cash is becoming less and less common. Bitcoin is like, the Facebook of social media. Facebook, was the evolution of the phone book, at first, people didn't understand why they needed it, and now it has become essential for everyday living. Bitcoin is the new way to deal with money.
1.It is a literal universal currency that unites the USD with all other currencies around the globe, without the need for an exchange rate.
2.Bitcoins value is a constant for everyone, it doesn't fluctuate for one person in one country, and remain the same for someone in another country.
3.Bitcoin is it's own economy and can hold its own, while the physical based currency economy is in turmoil.
4.It can be kept and spent anonymously, this means, you can hide money, without banks, or governments, or anyone else knowing about it.
5.When you move cash into Bitcoin, it's like having a bank account with potentially great interest rates if you simply just let it sit.
6.More and more businesses are beginning to catch on about Bitcoin and are making it more popular as a method of payment for goods and services. Which makes it a smart investment.
7.If you look at the track record of Bitcoin, you can see that in the beginning, it had its up and downs, but is now really starting to soar as it finds its footing. Anyone who has not panicked when it has dropped, has always seen their investment go into the green.
One big concern many new investors like you have about Bitcoin, is that it will be regulated or banned, or in some way shut down by the authorities causing the value of Bitcoin to fall into nothingness. I would like to point out something. This is the internet. When Napster was first putting out music for free, and everyone was downloading it, the authorities tried to ban it. What happened? It evolved. I know I still get music and movies for free with multiple download sites that still exist today. So the authorities really couldn't stop it could they? In the exact same fashion, Bitcoin will evolve. Infact, there any many other crypto currencies like Monero, that are already ahead of the game, prepared for if or when the authorities try to regulate Bitcoin. So it would be extremely difficult for any of those concerns to actually be a problem to the investment of bitcoin, and that should not scare you away from investing.
Yes, it is possible that bitcoin could go belly up, and you lose your investment, however, if that does occur, it would likely be from something unforeseen, that nobody can predict. And it's the same in the physical economy, there is always a risk for paper money to become worthless, many countries have already experience this like Zimbabwe.
Don't just take my word for all of this, do your own research and get informed, ( great place for that is here in these forums, and the awesome helpful people that reply), that is the most important part of investing in anything. However, as I have said, Bitcoin is an innovative creation that will carry us forward into the future, redefining how we deal with money, and removing banks and government regulation, turning each of us into our own bank. How incredible is that? When you really start to think about it, you can see the genius behind it, and that is what makes you understand why you should invest.
Cheers, to the future!