Whencame in 2009, little did potential users know that a time was coming when they would be caught between making two difficult decisions – adopting as an investment and using it as a payment system. Ordinarily, making such decisions should not be a problem. However, considering the importance of the two choices, making the right decision becomes confusing.
Before concluding on what most people prefer, let us quickly take a look at both sides of the. We can then understand the right sides of as an investment or a payment system.
Bitcoin as an investment
When this Jamie Dimon. Nonetheless, the has grown to become one of the most sought-after investments. But why do people want to invest in ? Here are a few reasons:was introduced, several people never gave it a chance. Some persons, including experts, even branded it a ‘fraud.’ One of those who saw it as a bubble and a fraud was JP Morgan’s
High return on investment
Buying $3,000 worth of bitcoin at $0.15 per coin (20,000 coins). He later made a $25 million profit on his $3,000 investment and decided to resign his job to travel around the world. Investing in is one of the easiest ways to earn huge profit, though the price of the is highly volatile.for less than a cent in 2009 to selling it for over $19,000 in December 2019 has arguably raked in one of the highest percentages in terms of return on investment. One investor who has this positive story to tell is Smith, who bought
Increasing global acceptance
The rate at which the world is accepting Fox Business, billionaire businessman, Tim Draper, who has made several accurate predictions in the past, advised everyone to invest in because the digital will soon become the “biggest change in the history of the world”. Investing your money in it now would mean having a piece of the cake in the next few years when demands would drive the price., it would not be long before everyone accepts the as a means of transaction. Speaking on
Controls the crypto market
Another reason why a lot of people loveas an investment is that it controls the crypto market. Majority of the on the CoinMarketCap gain or lose prices based on the direction of the prices of at a given time. is already established in the crypto ecosystem and dictates the movement of the prices of other .
Bitcoin as a payment system
Apart from seeingas a good investment, several users love it because it serves as a means of payment. Here are some reasons why some users prefer the as a payment system:
Accepted online and offline
Bitcoin is no longer restricted to online transactions. Theis gradually expanding at a tremendous speed and giving opportunities to traders to avail their funds offline for smoother business running.
For instance, ATMs are already being installed in several locations across the world to enable people to withdraw their bitcoin earnings with ease. Hyosung, in partnership with Just Cash, is already making this available to buyers and sellers in some countries such as Korea.
General Bytes, a Czech-based ATM manufacturer, has also supplied over 2800 ATMs to over 63 countries.’s popularity as a means of payment is soaring.
Gradually taking over from fiat
Gone are the days when merchants and buyers hadas the only means of paying for goods and services. With its faster speed, has come to stay and is gradually edging as a means of payment. Business owners prefer because it makes payment for their goods and services faster. Should bitcoin sustain its current advantage and improve upon it, it would not be long before the world jettisons for .
Secure and decentralized
Another reason whyhas gained traction is that it is as a means of payment. It is difficult to hijack transactions or reverse them to defraud sellers. Besides, bitcoin transactions are decentralized, taking them well beyond the control of third parties such as middlemen, central banks, and other financial institutions. Since it is not under the control of a single government, it is difficult to manipulate, unlike .
It is cost-effective
Fiat is not only slow as a means of payment; it is expensive due to the high rate of transaction fees charged. However, with, transaction fees are lesser than those of credit/debit cards, thereby making the the preferred option. A lot of persons are attracted to bitcoin just because it makes it cheaper for them to run their businesses.
So, what is the preference?
We have seen that two crucial things are attracting people to bitcoin; the quest for profit and the desire to run businesses smoothly and faster. It is, therefore, difficult to say with certainty that one group dominates the other.
Just as several investors would loveto continue to be around for a longer period because it gives them the opportunity to earn more profits, a lot of other merchants and online shoppers would be happy to have the because it increases trust, makes transactions faster, has zero inflation risk, more , and decentralized.
It will suffice to say that one’s preference depends on what benefit one hopes to get or the solution thatcan provide to one’s business. The number of people investing in is fair enough just as those using the as a payment system. The bottom line is that has come to stay and that there are two classes of people jostling for its use: the investor and the merchants/buyers, who have found the useful in one way or the other. In my opinion, it’s a wise decision to invest at least a little beside using bitcoin as a payment option.
We would love to hear your opinion. What do you prefer as a bitcoin user, investment, or payment system? Please, share your thoughts using the comment section below.