No one is sure about the future of bitcoin. Just like many other investments, there is debate over whether this will be a lifetime opportunity, or whether it will fizzle out. Scientists all over the world are busy trying to predict the future of this digital currency. Bitcoin appreciated by more than 100% appreciation in value within a period of 13 months.
Many prospective investors need assurance that bitcoin is here to stay. This is all they need to make that bold move of investing in bitcoin. There are five parameters that scientists have been using over time to determine the adoptability of innovation or an emerging piece of technology. Through this lens, the article explains to prospective investors why they should invest in bitcoin.
Five Good Reasons Why People Are Rushing To Invest In Bitcoin:
1. Relative Advantage
In the field of technological innovation, relative advantage refers to how current products are designed as improvements of their predecessors. These improvements can be social or economic advantages that can be measured in any monetary benefits, satisfaction or convenience. The adoption of bitcoin will result in better services, improved and flexible user interfaces as people will no longer be required to visit banks.
Since it is decentralized, transacting in bitcoin is also convenient. This means that no single party is entrusted with the custodianship of bitcoin transactions. As compared to other forms of transactions, bitcoin is relatively cheap.
Transactions do not have to go through third parties, hence the lower costs. Bitcoin users do not have to have bank accounts for them to transact. All one needs is an electronic wallet. Another benefit of investing in bitcoin is that bitcoin is immune to inflation. 21 million bitcoins only will ever be mined. As such, these investments will continue appreciating infinitely.
An innovation has to be compatible with the needs of those who will adopt it. It should aim at satisfying certain needs. For instance, the iPhone succeeded because prospective customers had several devices that served the same purpose as the iPhone. Apple just repackaged these functions in a manner that phone users deemed as superior.
Over the 7 years that bitcoin has been in existence, it has stood the test of compatibility. With just a mobile phone and internet, you can easily access your bitcoin. One does not need to change his or her lifestyle in order to accommodate bitcoin.
This refers to how an innovation adopter can experience it firsthand. Originally, bitcoin could only be accessed through Nakamoto paper. Today, however, there are plenty of digital currencies ATMs all over. These ATMs allow an easier option of trading bitcoin in a user-friendly environment.
People have previously invested in bitcoin and the results were more than amazing. They reaped big. This means that bitcoin is real. One does not require a lot of money to invest in bitcoin. Small investments allow people to own fractions of bitcoin.
According to history and science, the simpler an innovation is, the higher the chances that it will succeed. Complex innovations barely made it. How bitcoin works can be easily understood. The underlying science of bitcoin trading can be easily understood, even if one is not a programming or computer expert.
Bitcoin transactions are based on blockchain programming, which is a very sophisticated thing. But if you are familiar with mobile banking, graphical user interfaces and the internet, understanding bitcoin becomes very easy. Bitcoin is backed up by science. It is therefore, not a scam or a fraud.
In innovation, observability is applicable in innovations that have very obvious benefits, even to the non-users. For instance, anybody could choose a vacuum cleaner over the broom.
Over time, the bitcoin has become accepted in most countries. People see it as a better way of transacting or investing. It does not require mobility, long queues and errors in filling out bank details. All one needs is a computer or phone and internet. More and more countries have continued opening up to the bitcoin. In the years to come, bitcoin will be a universal currency. More people now have the knowledge on bitcoins.
Invest In Bitcoin Conclusion
With all the above considerations, it is quite evident that bitcoin is not a passing fad. There are very many factors that favor the adoption of the bitcoin. As the world opens up to this digital currency, so many opportunities await prospective investors who are willing to take the risk.