Gold has long been seen as one of the safest investments. Gold is a precious metal – we have a limited supply of it in the world. This means that it is in constant demand and prices rarely fluctuate. Bitcoin shares similarities with gold. Bitcoin also has a limited supply – only 21 million will ever be mined. Furthermore, Bitcoin is in high demand.

That is where the similarities end. However, many people see Bitcoin as the preferred investment over traditional gold. But why? What makes Bitcoin such a viable investment opportunity? What can it offer that gold can’t? Read on to find out our top reasons to buy Bitcoin!

1. The Bitcoin industry has experienced a continuous growth

If we look at how Bitcoin was launched compared to how it has developed today, it is clear to see a huge improvement. A continued growth and expansion is a key to any successful investment. The fact is that the cryptocurrency industry has developed beyond our wildest expectations. No one expected Bitcoin to take off as it has or cryptocurrencies to become such a focal point of modern business.

There is no sign of Bitcoin slowing down and the industry is receiving more investment. Moreover, Bitcoin is becoming widely accepted as a valid form of payment. Additionally, more high-profile businesses are taking note and seeing the potential Bitcoin has to offer. If this trend continues, investing in Bitcoin now is certainly a safe bet.

2. The price of Bitcoin is extremely volatile

Volatility in investment can be a double-edged sword. On the one hand, you could potentially lose huge sums of cash. On the other hand, you could make a fortune. Here are some numbers showing how the price of Bitcoin has been changing since the coin’s inception:

  • August 2010 – $0.06
  • July 2013 – $84.96
  • December 2013 – $945.74
  • February 2015 – $239.54
  • August 2017 – $4,672.82
  • December 2017 – $17,549.67
  • September 2018 – $6,420.80

As you can see, we had highs of over $17,000 and lows of just $0.06 – no fiat currency can be compared to this. But why does this make Bitcoin a suitable investment choice? Basically, it means you could earn a huge return on investment.

For example, let’s say you bought 100 Bitcoin in August 2010 at $0.06 each. This means your total investment would have been $6.00. Fast forward to December 2017, and that insignificant $6.00 would have become $1,754,967.00! Obviously, the chance for that type of return is now diminished, but the volatility of the currency still means that you can win… or lose big.

3. The cryptocurrency industry is becoming regulated

Whilst regulation could mean an end to startup cryptocurrencies raising millions of dollars un-checked, it could bring stability and longevity to the Bitcoin market.

The cryptocurrency industry is renowned for its lack of regulation and control. There have been numerous scams and scandals involving fake ICO funding and Ponzi schemes. For example, OneCoin has been surrounded by scandal – in early 2018 its offices were raided and huge sums of cash seized due to its illegitimate actions.

Moreover, many cryptocurrencies are still illegal in certain countries. Bitcoin, for example, is illegal in the following countries:

  • Algeria
  • Bolivia
  • Colombia
  • Iran
  • China

As countries lift bans and put regulations in place, the Bitcoin market should only grow and succeed further.

It is inevitable that as the cryptocurrency industry grows, regulations will be implemented. As Bitcoin is relatively stable, it should only benefit from them. Furthermore, improved regulations will undoubtedly attract attention from investors and financial institutions. Historically, these groups of people stay away from investment opportunities that lack regulation. As Bitcoin becomes mainstream, it will look increasingly attractive to a much wider global audience.

4. Bitcoin and blockchain technology is the future

Many economists are predicting that Bitcoin presents the future of currency and modern business. We have to remember that cryptocurrencies are still in their infancy. This type of technology is still being developed – it has yet to reach its full potential. When we consider how influential cryptocurrencies already are, this can only mean good things for the future.

The underlying technology behind Bitcoin is also an influencing factor. Blockchain technology involves adding blocks of data to a chain through a public decentralized network. Most cryptocurrencies are built using this technology, but it has other uses in a wide array of industries. Investors and entrepreneurs are catching on to the power of blockchain – this can only mean that Bitcoin will strengthen and play a greater role in future technologies.

5. Investment diversification is a key to success

This is a well-known fact within the world of investment. In order to maintain a profitable portfolio, you must seek diversification. By diversifying your investments, you are reducing the associated risk factor. The idea is that if one takes a loss, another should be making a profit. Choosing a handful of different investments balances your portfolio and helps you attain a long-term stability and growth.

Bitcoin can serve as a diverse investment. If you invested in stocks, shares and savings accounts, for example, adding Bitcoin to your portfolio could be a sound move. The price of Bitcoin is not affected in the same way as other investments – during times of the economic decline, Bitcoin may not necessarily devalue.

Bitcoin as a reasonable investment

Choosing an investment opportunity is always risky. There is no guarantee that purchasing Bitcoin will make you a sound ROI. From the pointers listed above, however, you can see that Bitcoin has a huge number of positives.