It’s exactly one decade since Bitcoin was launched. What would it take you, and how to invest in Bitcoin in 2020 (and beyond)? Are there any steps that you should follow for you to be successful at a cryptocurrency investment attempt? If you have been asking yourself these questions then you are in the right place. Herein, I will be showing you:
- Why people have been purchasing Bitcoin
- Why Bitcoin is valuable
- How the price and value of Bitcoin are set
- Why you should start investing in Bitcoin
- How to Invest in Bitcoin
- Will your Bitcoins be secure?
- What about Bitcoin Mining?
Why people have been purchasing Bitcoin
Have you come across the old saying that goes” Numbers don’t lie?” That one statement sums up the reason why investors have purchasing cryptos. In 2016, for instance, the price of Bitcoin was at $710. As of December 2019, the price of Bitcoin is at $7319. If someone would have purchased one Bitcoin back in 2016, and sold it in 2019, he or she would have a tenfold return on their initial investment.
Simply put, those who purchase cryptos and hodl them for a substantial amount of time are bound to reap impressive returns. Even without having to dig deep into the technical terms around cryptocurrency investments, you can simply look at a Bitcoin price chart since 2009, and see how much you would have made for purchasing Bitcoin more than 9 years ago.
Why is Bitcoin Valuable?
Some people are yet to understand why Bitcoin is worth several thousand dollars. This is actually one of the reasons why a significant number of people have passed on the opportunity to invest in Bitcoin.
The two main features that make Bitcoin valuable are scarcity and utility. If you look at gold, which is also very valuable, you will realize that these are the two main features of this precious metal. If you attended your Geography classes, you will agree with me that the more we mine gold, the less of it there is left in the ground. As such, the prices of the gold that is being mined are bound to spike.
The holds for Bitcoin since there is only 21 million Bitcoin. As time passes, it becomes more difficult to mine Bitcoin. This, in turn, affects the overall value of Bitcoin.
Just like gold, Bitcoin has been viewed as useful in the exchange of goods and services. There are many reasons why Bitcoin stands out amongst other currencies, including:
- It can be sent from any point in the world.
- There is no central government that controls the transactions.
- It attracts some of the lowest transaction fees (in most cases it will cost you nothing to send and receive Bitcoin).
How is the price and value of Bitcoin set?
- The faith that investors have in it.
- The level of integration of Bitcoin into the existing financial institutions.
- The willingness of the public to learn about the use of cryptos, as well their ability to eventually use them.
So far, Bitcoin has managed to maintain an impressive scorecard in all three levels. Data collected from cryptocurrency IRAs shows that more and more people have been investing in Bitcoin. There has also been the massive adoption of the blockchain concept in global superpowers such as China, which is something that reinforced Bitcoin’s position in the world as the most valuable cryptocurrency. This has been as a result of more people believing that Bitcoin is not “a scam”. In addition to that, the availability of information has helped more and people understand cryptocurrencies. As Warren Buffet puts it: You should only invest in assets whose principles you understand.
When should you start purchasing Bitcoin?
One decade ago, the value of one Bitcoin was negligible. In 2016, this crypto was valued at $710. Fast forward to February 2019, you could only buy one BTC if you had $3800+ in your bank account. In December 2019, 1 BTC is valued at $7319. The information that I have not revealed is that the price of Bitcoin has shot up fast and plummeted at the same rate. Let us say a certain investor, Mr. John Doe decided to invest purchase 10 BTC in 2016. How much would the bitcoin be valued at in December 2019?
- 10 x $7319 = $ 73190
- Untaxed Returns = 73190- (710 x 10) =$66090
Let us also say that Mrs. Jane Doe decided to purchase 10 BTC in February 2019. How much would she have reaped from this investment so far?
- 10 x $7319 = 73190
- Untaxed Returns = 73190- ( 3800×10) =$35,190
In both cases, both investors would have made an impressive investment income. To answer the question set above, I would recommend that you look at Bitcoin price charts to see how its prices behave. It is easy to tell when this cryptocurrency is hitting a low, and then you can make an entry into this sector.
On the overall, however, and based on the John and Jane Doe’s case study, the time to invest in Bitcoin is now. It is a risky asset and its prices are erratic, but you will barely be disappointed if you purchase it and hodl it for a couple of years.
How to Invest in Bitcoin (2020 and beyond)
Purchasing and investing in Bitcoin requires extra care. There are people and organizations out there that are only after robbing you of your hard-earned money. If you, however, work directly with a reliable and trustworthy company then you will be good to go.
If you are looking forward to investing through a cryptocurrency IRA, then you can bank of the expertise of the staff at Regal Assets. With Regal Wallet, which is simply the crypto IRA platform offered by Regal Assets, you can begin to invest in a wide variety of cryptos. Regal Assets is the best company in the provision of gold IRAs, as well as crypto IRAs. Its recent partnership with Coinbase has seen it increase the number of coins altcoins that you can invest through your crypto IRA account.
Will my Bitcoins be secure?
Platforms such as Regal Wallet offers what is known as cold storage. Cold storage is synonymous with the secure vaults that we rely on to store valuable products. This crypto storage approach has come up as the industrial standard of the security of Bitcoin. With Regal Wallet, your cryptos are protected from physical thefts and hackers. Your Bitcoin will, therefore, be safe depending on how and where you store them. Securing these cryptos should be your number one priority and you should simply not take chances with it. Read about Regal Wallet in this review to know why it is the most superior crypto IRA wallet service provider in the market.
Bitcoin mining, as earlier on stipulated, is getting harder by the day. Your chances of mining a single coin by solving the very complex arithmetic are close to zero. You will also have to purchase very expensive equipment for you to compete against other miners in the rest of the world. The better option would be to simply reach to a company like Regal Assets and to invest through a crypto IRA.
In conclusion
As the world continues to open up to the concept of Bitcoin, there are going to be the big winners, and also those who wish they had taken up the opportunity. There are many rumors that have been spread about Bitcoin, but as a prudent investor, you can agree with me that the numbers do all the talking. Get started today, and be amongst those who will be thinking about early retirement in the next decade.
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I hope you found this short article on how to invest in Bitcoin in 2020 and beyond to be helpful. Please share your own experience in the comment section below, also, if you got any questions about this I would be more than happy to answer them in the comment section below!
I wish you success!
Eric, investor, entrepreneur and team member of Gold Retired
