Bitcoin is the most well-known & widely used cryptocurrency in the world.By February 2015, over 100,000 vendors were accepting this revolutionary digital currency. This currency was fully released in 2009 by Satoshi Nakamoto (a pseudonym for the inventor.) Although it can be classified as part of the FOREX market (the decentralized market for trading currencies), it is fundamentally different to other the other currencies. For example, it is not the domestic currency of any Country.
Bitcoin (BTC) is Less Controlled & Regulated Than Conventional Currencies
As Bitcoin is not minted by a central bank, & it isn’t specific to any one nation, it is free (to some extent) from manipulation. For example, the US Dollar can be affected by the Federal Reserve’s Monetary policy (i.e. interest rates.) To be more specific, a decrease in interest rates would cause the value of the Dollar to decrease.
Bitcoin is free from this sort of state intervention. Some investors may view this as a disadvantage, as changes in interest rates gives them an opportunity (they can benefit from the added volatility.) However, other traders prefer to trade an asset that is virtually uncontrolled.
Bitcoin is a Volatile Asset – Has High Growth Potential
According to an article published on Forbes (on 08/07/2016), Bitcoin has been recently gaining value exponentially. The article read “From late this May to just a few days prior to the UK’s referendum on European Union (EU) membership, the price had surged almost $300. As of July 7 it was trading at around $648 – up 63% from the price this time last year at $397.”
Bitcoin’s volatility means that investors can generate large returns. In fact, estimates of its future value (by 2030) range from $1 – $10,000 (some analysts think it could be even greater or lower than this range.)
Owning BTC Diversifies Your Portfolio, Hedging Risk
Owning a range of different assets, such as stocks, bonds & commodities allows you to mitigate the risk associated with trading. Taking a position in BTC is a good way to diversify your portfolio, & reduce the likelihood of a single bad trade wiping out your account balance.
As of the 09/07/2016, 1 Bitcoin is worth $652.13.