The first lesson that is taught in a business school is that invest in anything that is substantial and rare. Until now investing in oil (also known as “liquid gold”) was considered to be one of the best investments. Its use is limitless and since it is a natural resource it is rare. Investments in oil have not only doubled or tripled but have grown in many folds. Today, the new trend is investing in digital currency. Investments gurus of wall street have also started investing in digital currency “bitcoins.”
Investors who have a decent risk taking capacity and who are always looking for opportunity for making a good investment have invested in bitcoins. Bitcoins have made a phenomenal growth last year. This electronic money mined by computers by creating unique complex numbers through various algorithms is sold on the bitcoin network. The number of individuals and businesses investing and accepting bitcoins are growing by the second. The most important factor which is attracting people towards bitcoins is because of its speed and low cost.
For example if you are a trader based in United States and you have purchased certain goods from someone in South Korea and need to make payment for the goods purchased. South Korea as a nation have poor economic backup and the currency rate is volatile. The exchange rate and service charge on the transactions charged by your bank will be very high. Hence your transaction will turn out to be more expensive. To avoid the excess baggage digital currency bitcoin is the best alternative. The current rate of exchange per bitcoin is U.S $350. As bitcoin has no central authority the mode of payment will be direct without any banks or government regulations coming into picture.
Since transactions in bitcoins are simple and fast many businesses are accepting bitcoins as a mode of payment of their goods and services. Another reason why investing in bitcoins is attractive is that it is finite. As per bitcoin network there will be only 21 million bitcoins created and the last 21 millionth bitcoin will likely not be “mined” until the year 2140. Unlike paper money which is printed by the government, bitcoins will be limited. Hence the reason so many people are trying to get ahold of this limited digital gold.
If you are a traditional investor who believes in making safe and sound investment then it is advisable to stick to the regular mutual funds and shares. But if you have an aptitude of taking risks and are ready to invest in something new and volatile, then investing in bitcoins will be your first choice. Bitcoin as digital currency is here to stay and its exponential growth last year helped to prove it as a good investment. You can either buy individual bitcoins by having a digital wallet or invest through bitcoin investment trust where you can purchase securities whose value is derived from the current bitcoins price. As long as you stay invested, owning individual bitcoins or securities, anything should be good.