With all the media attention this year, if you still have not heard about Bitcoin (and hopefully cryptocurrencies in general) get out from under that rock! No investment this year can even come close to the gains that we have seen in cryptocurrency in general. There is SO much to be gained with just simple investments that even a complete beginner can do pretty well if they stick to the basics. This what motivated me to completely liquidate my 401k and invest in crypto (article on that here!). Whether you are a savvy investor or have never invested a dime of your money in anything but your mattress, now is a very exciting and lucrative time to invest in Bitcoin (or some of his buddies).
Every time I talk to a friend or colleague about cryptocurrency and try to explain the tech stuff they all ask the same basic question, "Why should I invest in crypto?" Being the tech person that I am, of course I see blockchain technology and I know THAT is why I am investing, but for most people they want to know what they stand to gain. It boils down to one word: PROFIT.
Step 4: Profit
People are making a KILLING on cryptocurrencies right now. I could go on sighting examples of the millionaires made over night and the people turning just a $100 investment into $50,000 in a matter of just a few months, but I won't waste time with that. Instead I will get down to the "why" you can make great gains and what makes it exciting. I have broken the main points that make investing in Bitcoin not only exciting ( or not exciting if you choose, more on that later), but also very lucrative.
Top Reasons To Invest In Bitcoin
There are more beyond this for sure, I made a simple list so everyone can get in on this without having to understand and bunch of tech and computer stuff!
- Profit - We talked about this, but it IS the number 1 motivator. Bitcoin up over 80% since the beginning of 2017 along with Ethereum up 5,000% (no that is NOT a typo), and now Litecoin is on a run and is up over 1,400%.
- Ground Floor - While we have seen a flood of people into the crypto market this year (including mainstream investors like Mark Cuban, Fidelity, Microsoft and more), anyone getting in now is STILL considered on the "Ground Floor" of cryptocurrency. Remember the last time someone offered you a "ground floor" opportunity and you didn't take it?? Don't make the mistake again! Most ground floor opportunities require heavy investing, but you can buy as little as $20 worth of crypto to get started!
- Set Amount of Coins - There will only ever be 21 million Bitcoin's in existence. That's it... Let me say that one more time. There will only ever be 21 million Bitcoin's. Almost nothing else you invest in is limited in this way, except cryptocurrency. Do you really want to be the ONLY person that does not have their piece of the pie? Because of this hard cap of coins, the demand for Bitcoin will only ever go up in the long run. What do you think your investment will do? Think about that one for a second...
- Similar to Gold - Bitcoin has a lot of similarities to gold as a store of value. It also has a lot of advantages over gold (see my recent Bitcoin vs Gold comparison). Everyone and their mama invests in gold because it is "safe". Bitcoin is also safe in the long term, but people tend to only see the day to day volatility and it makes them nervous. I can guarantee that no one that bought & held onto Bitcoin since the day it started has lost ANY of their investment. Even the folks that bought in just last month, have made a great profit. Bitcoin is great for long term storage of your money and the numbers of the last 8 years prove it.
- Great for small investments - Many investments today require quite a bit of money to get started and also require a good deal of knowledge in that area to feel comfortable with giving up that big chunk of change. Bitcoin does not have these same requirements. People see Bitcoin surging to $5,000 for JUST ONE Bitcoin, but you can buy as little as 0.00000001 of a Bitcoin (called a Satoshi, see my crypto terms guide). In addition to being able to invest small amounts and make profit, you also don't need a ton of info to get started of feel secure (especially if you have been reading my beginners articles)!
- Less Regulation - There is very little government regulations in cryptocurrency compared to other traditional investments, because the whole technology is built around there NOT being a central authority, like the Federal Reserve, that makes all the decisions. Instead, Bitcoin is "decentralized" and no 1 person or company can make decisions. We ALL make the decisions... everyone that uses or supports Bitcoin in any way. The concept is hard to wrap your head around I know, but if you have been watching the shitshow that has been Wallstreet and big banking over the last decade I think you may understand that these guys are not on your side. Cryptocurrency was built FOR the average person to take back their financial freedom and not have to rely on corrupt 3rd parties.
- New & Exciting! - I put this one last, even though it could be a HUGE factor for many people. Bitcoin and cryptocurrencies are new & exciting! Humans LOVE new and they also (mostly love exciting). Bitcoin has only been around for 8 years, so it is fairly new, but it is so exciting ( and lucrative) that people have invested about $80 BILLION since 2008. The day to day volatility is something cited by anyone and everyone denouncing crypto as a fad, and while yes the price of Bitcoin and most cryptocurrencies is very volatile it means you can do well on day trading too! As a long term store of value, Bitcoin has continually increased in value over time. You really get the best of both worlds; the ability to day trade the volatility and also to hold it over time and it continually increases in value.
To sum it up Bitcoin can make you profit, you still have a chance to get in on the ground floor, there is a set amount of coins so don't miss out! It has a lot of similar features to gold, great for small investments, less regulated, and best of all; New & Exciting! Of course, the technology will also change our entire future, so there's that too I guess...