Why People are Investing in Bitcoin

In a couple of months, bitcoin has gone from being a currency used in the dark web to buy drugs and other illegal substances to becoming one of the biggest investment opportunity where everyone has an opinion. Its fast rise in value has got everybody taking and wanting to invest in this crypto-currency. The question remains why a lot of people want to invest in bitcoin. This article has information providing answers to this question.
Rising price
The rise in the price and value of bitcoin is what has resulted in the high-interest rate. Things have gotten a little bit out of hand since bitcoin hit $12,000 to $16,000 within one month. It is surprising how the very same currency to an average of 8 years to reach the value of $2,000 but took a few months to reach where it is at the moment. The rise in its price is what brought awareness to the population and the attention of the media. Bitcoin was portrayed as being one of the few but best investments. This is the sole reason why there has been an acute rise in the number of bitcoin users and investors.

Bitcoin as a currency
Majority of bitcoin investors have opted to use them as they could use any other currency. This is okay having considered the rising number of enterprises that are currently accepting to trade with bitcoin. It is argued that bitcoin is as good as any other form of currency and can even be used as an alternative. However, with the boom of the value of this currency, it has become hard to use it for trading. Some institutions have however declined the use of this currency because of their volatility and their high transaction fee. However, this doesn’t mean that they will soon be used in the wild.
Theory of the mind
Despite the wave that has come with the popularity of bitcoin, they end up being purchased by a small portion of people. This is because, with such a wave, certain people are more likely to get involved in the bubble market while others will avoid. Studies suggest that a people tend to make investment decisions to an asset that is rapidly increasing in value. If bitcoin fail to crush down as predicted, the effects will be a reverse of the expected, and there will be a lot of individuals selling rather than buying the currency.

By | 2018-03-06T16:44:22+00:00 February 23rd, 2018|Blog|0 Comments