Why Should I Invest in Bitcoin?
For the balance of its short life, Bitcoin has provided investors with stellar absolute returns, above and beyond that of any other asset class. If you had invested $10,000 in bitcoin four years ago, it would now be worth nearly $1.5 million. It has increased in value by 600% in the last 2 years. The respected Saxo bank has predicted that it will double in value again in 2017 and so forth. Bitcoin is also a great store of wealth in times of uncertainty, is tax free, and makes a great hedge against against traditional investments.
Is investing risky?
Bitcoin is fundamentally designed as a store of value. While bitcoin still experiences large price swings, its volatility is decreasing. Bitcoin’s daily volatility is about a third that of five years ago, and quarter less than at the start of May 2015. Importantly, Bitcoin is differentiated from the other assets. It doesn’t move in tandem with them, and can therefore be considered a safe-haven asset that will hold value when everything else fails.
What about my privacy?
Bitcoin works with an unprecedented level of transparency that most people are not used to dealing with. All Bitcoin transactions are public, traceable, and permanently stored in the Bitcoin network. However, Bitcoin addresses are the only information used to define where bitcoins are allocated and where they are sent. It is possible to ensure addresses are created privately and are only known by the people you trust.