12th Jul2021

Why Everybody Is Rushing to Own or Invest in Bitcoin

by James Smith

Nobody is sure about Bitcoin’s future. Like with other investments, the debate over whether Bitcoin presents a lifetime opportunity or it will eventually fizzle out continues. However, experts from different places are trying to predict this virtual currency’s future. Within 13 months, Bitcoin’s value appreciated by over 100%.

Prospective investors, however, need the assurance that this virtual currency is here to stay. And they can’t make a bold investment move without this assurance. However, most people are rushing to invest in this digital currency for the following reasons.

Relative Advantage

Relative advantage is the ability of a current product to serve as an improvement of its predecessors. And the progress can be in the form of economic or social advantages that people measure in monetary benefits, convenience, and satisfaction. For example, Bitcoin’s adoption due to flexible and improved user interfaces and better services means people don’t have to visit their banks to access their funds.

Being decentralized means Bitcoin transactions are also more convenient. Essentially, Bitcoin does not entrust the custodianship of transactions to a single party. Bitcoin is also cheap when compared to other payment means. Since Bitcoin does not involve third parties, transactions cost a low amount. And users don’t need bank accounts to transact. An electronic wallet is enough to access, receive, and transfer Bitcoin tokens.

Humans can only mine 21 million bitcoins. And this makes this virtual currency immune to traditional money issues like inflation. Thus, Bitcoin investments are likely to appreciate infinitely.

Compatibility

Any innovation should be compatible with the users’ needs. It should aim to satisfy the specific needs of the consumers. And that’s the only way consumers can adopt the innovation. Bitcoin has proven its compatibility over the last decade it’s been available. That’s because people can access and use Bitcoin to pay for products and services using mobile phones and the internet. And accommodating Bitcoin doesn’t require a person to change their lifestyle. Instead, this virtual currency fits in their lifestyle.

Trialability

Trialability refers to the way a person can experience an innovation firsthand. For example, Bitcoin was initially accessible via Nakamoto paper. However, people can use Bitcoin ATMs and crypto exchanges like bitcoin circuit to access this virtual currency. These platforms allow people to purchase, sell, and spend Bitcoin.

Early adopters reaped impressive returns from their Bitcoin investments. That means this virtual currency is real. And investing in Bitcoin doesn’t require a lot of money. Instead, people start with a low amount that allows them to own a fraction of the cryptocurrency.

Complexity

A more straightforward innovation has a higher chance of succeeding. That’s why complex innovations don’t succeed. It’s easy to understand how this virtual currency works. Bitcoin trading is also easy for most people to understand. And this explains why people that are not computer experts or programmers are also investing in Bitcoin.

Blockchain technology, which is complex to most people, is the basis of Bitcoin transactions. However, anybody familiar with graphical user interface, the internet, and mobile banking can easily understand Bitcoin. Also, Bitcoin has scientific backing. And this differentiates it from fraud and scams.

Observability

Observability applies to innovation with apparent benefits. Most countries are slowly accepting Bitcoin. That’s because most humans consider it a better way to invest or transact. Investing in Bitcoin doesn’t involve long queues, mobility, and filling in bank details. With internet connectivity and a phone or computer, you can trade, invest, or pay with Bitcoin. Consequently, more countries are allowing their citizens to use Bitcoin. Eventually, Bitcoin could become a universal currency.

Final Thoughts

Bitcoin is undoubtedly not a fad. That’s because Bitcoin has many factors favoring its adoption. With the world opening up to digital currencies, the opportunities that investors can exploit with Bitcoin increase. And this explains why everybody is rushing to invest or own Bitcoin.
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