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Why you should invest in bitcoin

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					Why you
should invest in Bitcoin?
Naturally when a lot of people hear about the Bitcoin they
associate it with some sort of Ponzi or Pyramid schemes.
After all, what we have here is money that is created from
thin air, so why would it be worth of something, right? It
is for that exact same reason that most of the “Bitcoin
veterans” avoid in talking about the Bitcoin as an
investment, in fear to discourage people. Furthermore,
that is the reason for the writing of this article.

 This article's point comes to do the opposite, shed some
light and explain what are the various reasons why any
rational person should invest, even if it's a litte bit, in
Bitcoin.

 Bitcoin, in it's foundation, is an agreement between
people that a certain digital data piece represents value.
The first bitcoins that Satoshi and the “early adopters”
made had zero value, and were only an experiment to test
this new technology. Later on when people understood
the potential in the given technology a low initial value
has been set. People wanted Bitcoins, and were willing to
pay for it.

A new market was born. People understood
that Bitcoin, even today, provides something
that no company or institution do – the
ability for the person himself to have
complete control over his money.
Incidents like Wikileaks donation blockade and Paypal's
request to destroy an antique violin are only a few within
many that show the disadvantages of money control by a
third-party. The arbitrary commissions these bodies
apply (e.g Paypal's 3.4% for all monthly transactions
bellow 5000$, banks' unjustified commissions on any
international transactions, bonds, and deeds) shows us
that the goals of these bodies are clearly, with minimal
competition, to profit on the expense of their customers.
Furthermore the banking systems are so tangled that
money transfer from one country to another could take
up to a few days without any good reason.

 Here comes the biggest advantage
of Bitcoin. Bitcoin allows an absolute competition on
money transfer services – any person
mining Bitcoins acts as a small money transfer service,
and any other person around the world compete between
themselves for giving the service. This promises that any
transaction commission will stay practically zero for the
visble future – you can transfer small or huge amounts of
money at the same ease from one point to another within
an hour. No company or body is holding your funds, and
have no control over it whatsoever. At the present day
the Bitcoin is stil in it's “alpha” stage, or proving it's
vantages. This protocol running over three years and
rolls millions of dollars, however still suffering from
security issue – if you're keeping your funds on your
computer any trojan horse your computer gets infected
with basically can steal your money and there's nothing
you can do about it. Clever users can technically prevent
this issue by using a second dedicated computer or
superior security methods like two-stage authentication,
regardless there is no doubt that for the avarage user
the Bitcoin is still a complex and dangerous thing.

… And this is good for you.

A technology that is simple and easy to use usually
spread well and is not inviting for investment.

If somebody would come and ask you to invest in his
start-up that allows video chat or a file transfer service,
most probably that you would appeal to that since these
services are simple and available in abundance. The
internet itself took about 10 years to be globally used, and
at first was only a hackers, geeks, and academic
researchers domain. Gartner Inc. coined a term called
Hype cycle and it is expressed in the graph bellow:
We of course are not sure how or where the Bitcoin fits in
this graph, but the point that is worth mentioning is that
in any new technology evaluation we need to look
forward for potential and not only on the current state of
application. Bitcoin's vision is to become a universal
currency that will replace all others and will provide the
base for unified global economy.

It is clear that at the present there is a huge gap between
that and the vision but fundamentally there is no reason
for this scenario to fail. And according to the saying
“There ain't no such thing as a free lunch” where there's
risk, a young technology, and a lot of information the
public yet to process there is a big profit potential.

Every reasonable person will say that this scenario is
highly unlikely. There is a big infrastructure lying at the
base of the existing coins, bodies that don't want it to
happen, and unclear legal standing.

The question is... can you count the chances of success.

At the moment of writing this article the value of
one Bitcoin stands on a bit less that 5.5 dollars. Lets
assume in a scenario that the Bitcoin becomes 1% of the
united states economy within the following 20-30 years.
United States' GDP in 2011 stands on about 15 trillion
tollar from which 1% are 150 billion dollar. In this
scenario, all Bitcoin's economy worth 150 billion dollar.
In Bitcoin, as opposed to other currencies, the total sum
of coins is given and known ahead, that is 21 million coins
that will be created in the coming dozens years. Moreover
we know that in this scenario 21 million Bitcoins are
equal in value to 150 billion dollar, which is roughly over
than 7000 dollar per Bitcoin... that same Bitcoin that it's
value today stands on 5.5 dollars. If Bitcoin becomes
indeed the main global currency it's value presumed to be
over million dollar per coin.

 Now, the questions is how much chances you give for
these scenarions. If after looking into and examining the
facts you reached a conclusion that the chances for this to
happen are practically impossible, then there is of course
no reason to invest in this coin. Hoever, if you think that
the chances for the first scenario to happen are at least
tenth of a percent then statistically the investment in
Bitcoin is profitable and as rational investors “you need”
to invest any sum in the Bitcoin. It's a given fact that
people have a trouble to perceive and distinguish
between numbers like 0.1%, 0.01% and 1% ...the numbers
we are able to perceive are 80-90% to 50% to 20% to
“almost impossible” when anything that falls under 5-
10% we categorize as “impossible”. The question here ,if
so, is whether the chances of the Bitcoin for success are
above or bellow the line of one tenth of a percent.

Visit our Bitcoin Investments page where
you can start you'r journey.
At BTCWALLET.ORG

				
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posted:6/23/2012
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Description: About Why you should invest in bitcoin.