Investing in Bitcoin
Buying Bitcoin is a
good idea, but only if you directly put it into other cryptocurrencies too.
I see a lot of potential for other cryptocurrencies in the short term, since altcoins are still pretty much at the same price as when Bitcoin was around $5,000.
There are many factors pointing the advantages of Bitcoin and why Bitcoin will grow and it's worth investing in.
Bitcoin’s Lightning Network is already reducing bitcoin transaction fees to fractions of a penny and reducing confirmation time to one second. what is Bitcoin trend? This eliminates the biggest complaints about bitcoin as a payment network: “it’s too expensive” and “it’s too slow.” LN introduces some other problems but improves utility to the point it can compete with any traditional electronic payment system. Opennode, a new venture by crazy (but successful) investor Tim Draper, will be the first payment processor to use LN. Bakkt plans to eventually do something similar for Starbucks, creating a way for retailers to use bitcoin to settle transactions more quickly and less expensively than Visa/PayPal etc without forcing customers and merchants to actually own or hold bitcoin. Smaller, lesser-known entrepreneurs are trying to do the same thing, and with LN this effort will be much easier. Transactions will start and end in local currency, with bitcoin settling the transaction. Once LN runs on enough nodes, bitcoin will be a compelling alternative to traditional payment systems. If merchants switch to bitcoin-based payment systems, this will create a constant demand for bitcoin without forcing people to suffer bitcoin’s characteristic swings in volatility because merchants and users will never hold bitcoin, they will simply use a third-party to rent bitcoin for however long it takes to complete a transaction. This activity will create constant demand for bitcoin.
DriveChain is attempting to make it easy for developers to improve bitcoin without having to fork off a new chain. Rootstock is one of several efforts to deliver smart contracts using bitcoin’s blockchain. Dozens of developers are working on “second layer” interfaces that leverage bitcoin’s features. If any of these efforts succeeds, you will see even more activities that create constant demand for bitcoin.
Since bitcoin’s supply is fixed, nobody can boost supply. Higher demand will send prices higher.
On top of that you still have people who are buying bitcoin solely to sell it for a profit. We’re at a level that suggests, based on price history, that bitcoin’s price will go up not down.
I see a lot of potential for other cryptocurrencies in the short term, since altcoins are still pretty much at the same price as when Bitcoin was around $5,000.
There are many factors pointing the advantages of Bitcoin and why Bitcoin will grow and it's worth investing in.
Bitcoin’s Lightning Network is already reducing bitcoin transaction fees to fractions of a penny and reducing confirmation time to one second. what is Bitcoin trend? This eliminates the biggest complaints about bitcoin as a payment network: “it’s too expensive” and “it’s too slow.” LN introduces some other problems but improves utility to the point it can compete with any traditional electronic payment system. Opennode, a new venture by crazy (but successful) investor Tim Draper, will be the first payment processor to use LN. Bakkt plans to eventually do something similar for Starbucks, creating a way for retailers to use bitcoin to settle transactions more quickly and less expensively than Visa/PayPal etc without forcing customers and merchants to actually own or hold bitcoin. Smaller, lesser-known entrepreneurs are trying to do the same thing, and with LN this effort will be much easier. Transactions will start and end in local currency, with bitcoin settling the transaction. Once LN runs on enough nodes, bitcoin will be a compelling alternative to traditional payment systems. If merchants switch to bitcoin-based payment systems, this will create a constant demand for bitcoin without forcing people to suffer bitcoin’s characteristic swings in volatility because merchants and users will never hold bitcoin, they will simply use a third-party to rent bitcoin for however long it takes to complete a transaction. This activity will create constant demand for bitcoin.
DriveChain is attempting to make it easy for developers to improve bitcoin without having to fork off a new chain. Rootstock is one of several efforts to deliver smart contracts using bitcoin’s blockchain. Dozens of developers are working on “second layer” interfaces that leverage bitcoin’s features. If any of these efforts succeeds, you will see even more activities that create constant demand for bitcoin.
Since bitcoin’s supply is fixed, nobody can boost supply. Higher demand will send prices higher.
On top of that you still have people who are buying bitcoin solely to sell it for a profit. We’re at a level that suggests, based on price history, that bitcoin’s price will go up not down.
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