Is Bitcoin a viable investment
There are a lot of rumors on whether bitcoins are a viable investment option or not. And, it is quite understandable. When it comes to the world of investment, there is a good reason to be cautious. Scams are not uncommon in Singapore. Could bitcoins be a scam? And even if it is not, does it qualify enough to be called a profitable investment? Is bitcoin a good investment?
The Government’s Response
The government is the official financial authority and its response to cryptocurrency is vital to understand. If the government bans cryptocurrency in Singapore, any investment you’ve made in it will be a loss.
Like many other countries, the government has not clarified its official position on bitcoin and it falls into the grey area of law.
The Monetary Authority of Singapore has cautioned the public in investing in bitcoin and recommends that one does so only after carefully understanding it. Furthermore, Tharman Shanmugaratnam, Singapore’s Deputy Prime Minister, has publicly stated that the government sees no reason to ban cryptocurrency.
With Singapore’s bitcoin transactions volume going up to $1,900,000, the government will not be banning bitcoin or cryptocurrency.
Lack of Regulation
There is a cause for concern that bitcoin lacks any regulation, government or international. However, this actually works to the advantage of bitcoin. It is the application of Adam Smith’s free market in its truest form.
Bitcoin is not controlled by a single market, entity, government or bank. This means that bitcoins are subjected to forces of the free market.
Bitcoin utilizes blockchain technology to ensure that each transaction is verified.
- When a transaction takes place, it’s signed by a private key which prevents the transaction from being altered by a third party.
- The bitcoin transaction is recorded in a block and data miners verify the transaction.
These two are just some of the many security measures that are put in place to ensure a secure transaction.
It’s not a Bubble
Many experts have called bitcoin or cryptocurrency a financial bubble that will burst. However, the reality is much further from such claims. Instead, bitcoin is following an S-curve. The S-curve is an adoption process for any new technology.
Source: Wikipedia Commons
The S-curve takes technology goes through several phases of early adopters, early majority and late majority before it becomes the norm.
Bitcoin may very well be following the S-curve.
When you listen to a financial expert declare that bitcoin is a bubble, it’s best that you perform your own research before actually deciding for yourself.
Number of Exchanges
There are a number of bitcoin exchange platforms for you to trade on. This is due to the increasing number of traders and the large volume of transactions occurring on a daily basis. There are as much as 69 bitcoin exchanges in the world. This is proof that bitcoin is a credible and viable investment option.
Real World Transactions
While Bitcoin is a digital currency, its massive growth in popularity is seeing real-world application. The first recorded transaction of bitcoin was performed by Laszlo Hanyecz to buy two Papa John’s pizzas. Today, there are many businesses in Singapore that accept bitcoin payment.
Furthermore, there are bitcoin vending machines that allow you to withdraw bitcoin currency to spend. For example, there is a bitcoin vending machine located at Tiong Bahru Plaza.
Investing in bitcoin is profitable. You can earn a profit in two ways.
- Exchanges: You can trade bitcoins on one of the many exchanges that are available.
- Bitcoin Mining: You can begin bitcoin mining and earn bitcoins for every block mined.
So, is bitcoin a good investment? No doubt. It has real-world application, it’s stable and most importantly, it is secure.
The number of bitcoin transactions is ever increasing per day and without doubt, bitcoin is a good investment.
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