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Should I Buy Bitcoin? 10 Reasons to Invest in Cryptocurrency

Updated on January 2, 2018
Ariel Laur profile image

Ariel Laur has been following the Bitcoin phenomenon from its inception. She is cryptocurrency researcher and investor.

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Rapid Growth of Bitcoin Compared to Tech Stocks in the 1990's

It was in the 1990’s when huge profits were made in tech stocks such as Microsoft and Dell. Now, nearly 20 years later, a new market is emerging in crypto coins, a currency which investment analysts are comparing to the tech stocks of the 90’s, due to their rapid rise. Some experts advise that investing in any crypto coins is highly speculative (remember the tech stock bubble that burst in the late 90’s?) and very risky, while others say that the future of currency is in sight, and it takes the shape of a crypto coin.

Investors: Tread Lightly

Risky investments can offer the greatest returns, but managing this risk is and always will be, one of the most challenging parts of investing. Even some conservative financial advisors are recommending that 5% of your investment portfolio should be placed in crypto currencies.

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Bitcoin is a Type of Cryptocurrency

Cryptocurrency can be defined as “a digital or virtual currency designed to work as a medium of exchange.” -Cointlegraph.com. The original cryto currency is called Bitcoin it “was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks!”- Tal Yellin, Dominic Aratari, Jose Pagliery / CNNMoney .

Cryptocurrency can be defined as a digital or virtual currency designed to work as a medium of exchange.

— Cointlegraph.com.

After a discussion with a friend about the merits of Bitcoin, I decided to compile a list of compelling reasons to either consider investing in crytocurrency or taking the plunge and actually buying the virtual coin.

Following is my list of 10 reasons why you should buy Bitcoins or other similar cryptocurrencies:

10 Reasons to Buy Bitcoins

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1. Current technical chart analysts predict that Bitcoin will continue to increase in value. Some other cryptocurrencies show a similar long term outlook.

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2. Brokers such as Charles Schwaab have begun to include Bitcoins in their money market funds, revealing that investors and brokerage firms have confidence and feel the investment may be worth the risk.

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3. Analysts predict that cryptocurrency is the future direction in which currency is heading and is therefore here to stay for the long run. Even if Bitcoin itself fails, there will likely be another cryptocurrency that fills the void.

Not only is Bitcoin exciting, it’s also going to play an “important role” in the future of PayPal.

— John Donahoe, CEO of eBay

4. Wall Street is embossing its own stamp of approval by joining the Bitcoin revolution. Nasdaq will be offering its own futures in 2018 and Cantor Fitzgerald will offer a Bitcoin options product. The Chicago Board Options Exchange began offering Bitcoin futures as of December 10, 2017. Professional investors will now be officially active in the Bitcoin investment sphere.

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5. Millions of dollars have already been made through investing in Bitcoin. If you bought even a small amount of bit coin a few years ago you would have made huge returns on investment due to the quickly escalating value. In terms of percentages some returns were the area of 10,000%. While past performance doesn't predict future returns on investment, the rapid growth in this emerging currency is worth noting.

I think the internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing but that will soon be developed is a reliable e-cash.

— Professor Milton Friedman, American Economist and Nobel Memorial Prize Winner.

6. Bitcoins are fun and exciting, they offer a new way to buy and sell goods. They are taking online commerce to the next level and one day may even remove national currency as a monetary standard.

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7. Cryptocoins are global currency, a method of buying and selling that may one day leave nation systems of currency behind. This may be what the future holds. Bitcoins are developed using a decentralized system, this means that Bitcoins exist in computers all around the world. This system prevents the currency from being associated with any one country.

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8. For those living in a country with a failing or volatile currency, crytocurrency offers an alternative method of keeping their money.

9. Cryptocurrency is nearly impossible to counterfeit. The Bitcoin was designed with an encryption method so complicated that each transaction is safe from thieves.

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10. An increasing number of online and brick and mortar retailers have begun accepting Bitcoin. These include:

  • Expedia.com
  • Microsoft
  • Virgin Airlines
  • Overstock.com
  • Newegg.com
  • egifter.com
  • Zynga
  • Subway in Buenos Aires
  • PizzaForCoins can include orders from Dominos, Pizza Hut or Papa John's

Colleges that accept bitcoins for tuition include:

  • Kings College in New York City, starting in 2014

  • The University of Nicosia in Cyprus, 2013

  • ESMT Berlin, December 2016

Have you invested in Bitcoin or another cyptocurrency?

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Do you think that Bitcoin's rise is a bubble that will burst?

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Are you optimistic that crypotcurrency has a bright future?

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    • Ariel Laur profile image
      Author

      Ariel Laur 5 months ago from New York

      Hi Doubleklm,

      Thanks for the compliment and input. I really appreciate it!

      Best, AL

    • doubleklm profile image

      doubleklm 5 months ago

      Great article and very well stated. I think that everyone should take a very conservative stake in crypto currency as I believe it will continue to grow. I do believe we may see a bubble burst sometime in 2018 but I also think like in the past, the key coins will bounce back to even higher heights.

    • Ariel Laur profile image
      Author

      Ariel Laur 5 months ago from New York

      Thank you, Craig!

      Best, AL

    • S.K. profile image

      Craig Holman 5 months ago from Dallas, Texas

      Informative read... Great article...

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