What is Bitcoin to a Layman Investor ?
Nov 20, 2017 Posted / 2469 Views
Bitcoin is widely talked about nowadays; however, it is still an unpopular phenomenon. We are yet to understand the usage and importance of bitcoins. It is basically described as worldwide payment system or decentralized digital currency. For many, it is an accumulation of wealth in the digital form; however, some also consider it as a digital gold. The advent of Bitcoin has revolutionized the world of currency and commerce combining it with new technology. It is less popular amongst people as a currency yet.
However, the real combination is what the common people on the Bitcoin streets see it and how they use it and work with the new technology to revolutionize the currency. A recent survey by Lend EDU helped to depict the usage of Bitcoin Investments by Americans. Also, it provided insights on how this investment impacts tax, security, holding, and spending.
Bitcoin is gaining popularity these days by capturing diverse parts of the population. It’s no longer a considered a game of technological savvy players but its usage is now spread over mothers and even teenagers who are keen to invest.
When there is a vision for long-term return on investment, Bitcoins are considered the most appropriate by many who wants revolutionary earnings in future. There is a strong belief that people are lured to invest in Bitcoin because of the huge promises it seems to offer in the future. One of the recent research surveys from Bitcoin investors revealed that only 14 percent of people are chasing riches. Some people in this economy has a vision that it is a world-changing phenomenon and much better platform for investment than investing in traditional money market and current investment ecosystem. But we can clearly see that such strata of society have lost confidence in current exclusivity of investment systems.
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One of the firm believers in Bitcoin economy named Roshaan Khan, a 20-year-old senior at Virginia Commonwealth University, quoted the below:
“All of my net worth is in cryptocurrencies because I see them as the best way to escalate my ability to be financially secure and pay off my student loans,” Khan said. “I like the idea of decentralization, the fact that there’s a lot less corruption and political ties. That idea appeals to me. Not having to go through banks. Having financial control over our lives again.”
A common man seems to have an easy reach with their investment budget since Bitcoin investment can amount to just under $3,000. This is because of the current mentality of many of wait and watch.
Banks are yet seeing no reason to join the Bitcoin craze as they want to wait and watch before jumping into the burgeoning technology. They might be of the opinion that Bitcoins can’t help their bank to bring in customers, deposits or wealth management.
The most traditional advice for any investment market for any newbie is to hold and let it accumulate enough to grow. Similar is the case for the Bitcoin market.
Recent survey reveals that the most popular strategy amongst investors currently is “Hold Strategy” as per more than two-third of the investors.
Due to the Bitcoin jump trends in last ten years which is apparently from $0 to nearly $8000, only few percentage of investors want to hold for more than three years. Certainly this is an indication of fast growing quick market which can be lucrative for impatient investors. However, some old players are opting for the strategy to hold and reap more rather than focus on the time.
As per the IRS,The tax is still considered to be an issue which has less clarity on how the investors will pay it. However, one of the recent surveys suggests that the majority will pay tax on their Bitcoin earning, but not all of them. 67.38 percent were good to pay tax, while the remaining 35.87 percent will not share many details with the tax man. As long as the security on the decentralized form of money is concerned, as good as 55.85 percent of people felt no worry about the technological security. However, the rest 44.14 percent did.
Bitcoin is not a government-backed currency. Instability is good for Bitcoin. When there is a political unrest, the stock market dips. However, Bitcoins are resilient to such unrest. On the contrary, there is also evidence that recent unrest in Asia contributed to the Bitcoin price surge. In cases of unrest, many investors may find Bitcoins as a compelling investment. Further, it is very easy to invest in Bitcoin. People invest in the hope of escalated future price as Bitcoin transactions are not subject to any regulations. Apart from being an easy investment, it's also low-cost. Bitcoin exchange fees are minimal. If someone wants to speculate on currency, Bitcoin has many cost-efficient ways to do it.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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