Bitcoin is the first among the cryptocurrencies to have hit the market. For the same reason, it rules the digital money markets across the world. Though it hit the markets way back in 2008, it gained popularity in the markets only in 2013, with a sudden leap in its value. Ever since then, the value has kept in increasing and more and more people have come forth interested in making bitcoin investments. As of now, Bitcoins have earned a total profit in billions across the globe. Finance experts predict that the growth will only explode in the coming years and that bitcoins may be the future of our economies.
Having said that, it has its risks too. It is a decentralised currency which allows peer to peer transactions without any third party involvement. You often wouldn’t know who you are making these transactions with. Since these are encrypted digital money, the chances of getting hacked are also present . A single virus attack on the computer may be enough cause a loss of millions in one go.
These risks, and certain incidents where investors where investors got washed out of their money, have forced governments to research on how to bring some control into the digital economy. Nations like Singapore have already banned trade in Bitcoins or any of the alt coins till a centralized system can be established.
Still, people are eager to invest in Bitcoins. Are they going to take over the economy as predicted? Let’s examine the opinions of various experts before we come to a conclusion.
The Chinese markets have a very important role in deciding the value of Bitcoins. In 2017, the value of these cryptocurrencies went high as the Chinese population tried to overcome the crunch of Yuan. The market capital of BTC hit $1140 per coin- then an all-time high.
This gives another reason to believe in the future of Bitcoins. They are liquefiable in almost any Fiat currency in the world. Also, as long the trade in Bitcoins are not restricted by the nations, you can exchange them with the currency which has the greatest value at the given pint of time, be it Dollars, Euros or Pounds.
Bitcoins are like gold, an investment but without the storage issue of the former physical asset. Since these are stored in online ledgers under layers of encryption, they are as safe as anything. Only the best hackers in the world can decrypt those codes. The cases of hacking are comparatively low though not unheard of.
Tim Draper, the Finance expert and billionaire says that –
“In five years, if you try to use fiat currency, they will laugh at you. Bitcoin and other cryptocurrencies will be so relevant… there will be no reason to have the fiat currencies.”
He opines that the value of cryptocurrencies will almost double by 2025 and that they make an ideal investment for future. If we are to believe people like him, in the near future, the only money we will be seeing, will be the digital ones.