When Bitcoin was first invented more than a decade ago, it wasn’t worth much. Over the years the popularity of Bitcoin fueled the cryptocurrency race and although it’s treated more like an asset and not a fiat currency in most parts of the world today, Bitcoin’s value rose by a few thousand times since inception.
The highly volatile nature of Bitcoin is what draws investors to the game. And before jumping onto the bandwagon, we must first familiarize ourselves with the factors that drive the prices up or down. You don’t need to understand how Bitcoin works in order to predict its future movements. But, grasping the core concept is a perk.
For years, people believed Bitcoin was a form of digital cash while many viewed it as a revolutionary payment network. While the prices continued to rise over time people began questioning the reasons behind the growing worth of these random digital coins. The narrative slowly changed over time as people started viewing Bitcoin as digital gold.
While a section of investors sees Bitcoin as the new gold, many argue in favor of its superiority as it’s easy to move and store in comparison. So, if Bitcoin is comparable to gold, it’s a commodity and it sure behaves like one!
Demand Vs. Supply
Bitcoin’s demand explodes every four years and amateurs are clueless about why that happens. First of all, the currency is rare, which is very surprising since it’s digital and anything on the internet is easy to replicate. So, why can’t someone just create an infinite number of Bitcoins?
For starters, Bitcoin is mined. Without delving into the technicalities, mining is a complex mathematic process involving enormous puzzle-solving capabilities and this process is impossible to fake. There can only ever be 21 million Bitcoins and they’re released in blocks every ten minutes only after the key to solving the next block is unearthed. This is where the term blockchain comes from.
And every four years Bitcoin undergoes a process called halving, which cuts the number of Bitcoins per block in half. Eventually, no new Bitcoins can be mined after a hundred years. This is where demand vs. supply enters the frame and Bitcoin gains its value. In fact, even the number of Bitcoin gambling sites have been skyrocketing for the last couple of years. And apparently, it will continue to bloom.
How to Invest in Bitcoin Online?
As you can see, betting on Bitcoin isn’t gambling in the pure sense as there’s a method to this madness! As mining returns fewer and fewer Bitcoins over the years, the commodity will grow rarer and hence more valuable
Experts believe the asset will be worth over $100,000 in the immediate future. If you’d like to buy into the game today, there are numerous reputed gambling sites that offer real money on Bitcoin. But remember, investing in Bitcoin isn’t a get rich quick scheme.
The process is similar to commodity trading as the value continues to rise and fall with time. Betting on Bitcoin is a smart move today, as the cons of not investing in a growing market are far too many!