Recently there has been a lot of talk about a new virtual currency called the Bitcoin that is growing very rapidly, its gaining a lot of media attention and its value has increased dramatically. As of today one $BTC will cost you around $10,000 dollars and it was as high as $12,000 dollars recently.
The current financial turmoil in the United States and around the world has also made people invest in alternatives to fiat currency such as the Bitcoin and Altcoins like Ethereum, Bitcoin Cash and Dogecoin. Learn more about other Altcoins on UtilizeCrypto.com
For most people it is strange that someone can take seriously a currency that is not backed by a Government or central institution, but that is the precise advantage of this coin since there is no central location that can control it, also it has a limit of how much it can be mined which protects it against inflation.
Bitcoin developers can work on projects and create new systems that will make the virtual currency even more useful, as the mainstream adopts it the value will increase over the years.
Bitcoin is a virtual currency just like Dollars, Pounds, Euros but at the same time we have a type of currency that is not control by central institutions or banks, its completely decentralized. I can send money to whoever I want, whenever I want, wherever I want in the world and no one can stop me. This is all possible thanks to the power of Blockchain.
The Bitcoin is a very interesting concept that is gaining acceptance by many companies on the internet like PayPal, WordPress, Reddit, and many others retailers like Amazon are considering it. In fact ATM machines are already on the way to be used around the world.
Some of the critics of Bitcoins say that they are facilitating buying drugs on the Internet, the developers say that the virtual currency is just a tool and you can use it for good or bad, the same way that cash can be used for illegal activities.
Fiat currency has the disadvantage that central institutions can print as much as they want, therefore it is always losing purchasing power. The same principle applies if you have money in the bank. Instead what you should do is put your money on an asset that keeps its value or increase it which causes inflation over time.
Is the Bitcoin an Alternative to Fiat Currency – yes it is!
At this moment the Bitcoin seems a good option because its increasing its value, however this can change in the future. Another alternative is to invest your money on something productive like a business or land that increases in value or invest it in Gold or Silver however a lot of money is moving to this alternative asset.
Even though the virtual currency is a good way to diversify your portfolio and not depend on paper money or bank deposits, you need to look for a way to store value that is secure against financial hedge and the best option is Gold, because its the ultimate money, another option is to invest in stocks and REITs however some of these investments do not provide the growth opportunity that Bitcoin provides.
Gold has been a store of value for centuries and will always be, because its valuable, its limited in quantity, its easy exchangeable and its a store of value however it is hard to store, ship and it is not liquid since you have to find buyer if you are holding physical Gold.
At the end of the day, every investment comes with risk and you need to do your own research, this is not investment advice however we do argue that there is a ton of potential in Bitcoin and other alternative coins like XRP, always look at the valuations and charts and determine if you want to invest in Stocks, Gold or Bitcoin.