How Investment in Bitcoins changed the Fortunes of Many?

Investments have become extremely crucial for us in modern times that are beyond expensive for the common man.

People invest so that they have the means to stay ahead of the continually rising expenses. A person’s salary alone cannot equip him to fight the battle against inflation.

Even when the investment markets had not enhanced as much as it is in the present, people invested.

The most antiquated, yet still eminent, mode of investment is in the property. People have been buying land as long as the area was available to be purchased.

It is an investment because it can help you endure tough times by letting it go and receiving its price in cash for the same.

Let us come from the oldest to the latest trends in the market of investment, which is crypto-currency, more specifically, Bitcoins.

It is an investment that took this world by a storm and made some people get such high returns that wouldn’t have been possible through any other means.

Let us delve deeper to analyse whether what I am saying is true or not..

What is Bitcoin?

You must have bought an item online at one point or another, right?

Have you ever noticed that whenever you make a payment online, your bank is somehow involved?

The website or the application that you may be using will probably redirect you to your bank’s server or ask for an OTP directly.

This is done so that your bank is involved in every transaction you make, even buying a cup of coffee at Starbucks will reflect in your bank state.

With cryptocurrency, there is a non-existent involvement of the central bank, your bank or any other intermediaries. The currency works on its own. Any and every transaction made using the cryptocurrency is reflected on a blockchain, a public list on the web.

Bitcoin, being a kind of cryptocurrency operates on the same principle.

How a Bitcoin Operates?

A Bitcoin is not like a pound bill that has a physical shape; instead, it is a virtual currency that will be stored in your smartphone or PC. It is somewhat similar to a digital wallet; however, it is not going to use pounds as an exchange medium.

  • As a Currency

Bitcoin is a fully functional currency that can be used to make purchases from vendors and organisations who accept it as an alternative to currency.

A single Bitcoin is valued at a staggering £7,757.99 as of June 5, 2020.

This doesn’t mean that you can only purchase an amount that is as much as its value. A Bitcoin can be broken into parts and then used as a currency exchange.

  • As an Investment

Bitcoin is also a very lucrative investment if you want it to be. However, its immense volatility is one reason people become hesitant to take it up.

This cryptocurrency was launched in the year 2009. Even a year after it was launched, its value was as low as 0.3% of a US dollar.

Look at its valuation now, do you not see a profitable investment, because I certainly do.

How Controversial is The Bitcoin?

An innovation that might change our reliance on physical currency to reduce it has to have some form of controversy associated with it. People cannot merely digest the same willingly.

  • The Contentious Founder

The first controversy surrounding the Bitcoin is that revolving its creator. As of Wikipedia and all the other sources claiming to know the ins and outs of Bitcoins, it has been stated that it was created by someone named Satoshi Nakamoto, a Japanese name.

However, it has also been known that this name is a pseudonym since no one named Satoshi Nakamoto has come forward to claim the renown of his creation.

I wonder why someone, who is world-famous for creating a currency that is world-famous, will keep himself in hiding.

  • The Contentious Security

The second controversy was the one surrounding the release of Bitcoins. The governments all over the world, not just in the UK, considered them to be too risky. The reason was that the governments could not keep track of all the transactions done using Bitcoins, and as a consequence, the proportion of illicit transactions could neither be monitored nor tracked.

The British Government wanted to ban the trading of Bitcoins in the country. Fortunately, a formal ban was never announced.

How the Bitcoin Exploded in Value?

Its growth chart is an object of magnificence if you ask me.

  • In 2009, the value of the Bitcoin was next to nothing.
  • 5 years later, in June of 2011, Bitcoin’s value augmented as high as $31, is just a dollar at the beginning of that year. Can you tell me that it doesn’t sound appealing?
  • The following year experienced humongous fluctuations in value, with the price dipping as low as $2.
  • It was in April 2013 that this currency boomed again to achieve a valuation of $266 per Bitcoin.

By now, it was proven that although Bitcoin valuations would never be stable, however, they do provide an excellent opportunity for investment.

  • In January 2014, the price reached another level of augmentation to touch @1,000.
  • The price kept on fluctuating for the next 3 years. However, the valuation remained almost stable at $500 to $800.
  • The year 2017 was a good one for the Bitcoin; its value reached a height even the creator could not have fathomed.
  • On 17 December 2017, Bitcoin was valued at an exponentially high price of $19,783.

Up until now, the Bitcoin hasn’t recovered to that value, but it is still one of the most expensive and lucrative crypto-currency.

 Winding Up

In the end, I want to tell you about a friend who had bought 20 Bitcoins in December 2011 at a very economical $40, which equates to £31.72 at present.

He bought it because of the hype revolving around the Bitcoin, and he wanted to test his luck.

During the next few years, he forgot about his investment. It was in December 2017, when the Bitcoin valuation skyrocketed that he realised what a treasure he was sitting on.

He sold half of his Bitcoins at $13,000 each. He has almost a quarter of a million dollars on his sale.

He had taken two 100% guaranteed loans for his car and home renovations, and within three days of the sale, he became debt-free. He was still left with enough cash to plan a Euro trip.

It is how a Bitcoin investment can change your fortunes? If you can, you should try investing in these and wait for the right time to cash out on your investment.

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A person invests in basking in the profitable returns that investment can bring. What if I told you about an investment that can almost provide you with a guarantee to fulfil your goal?