Better Investment Than Cryptocurrency

Better investment than cryptocurrency

Value investing vs. cryptocurrency

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5 Reasons Why Bitcoin is a Better Investment Than Stocks and Mutual Funds

Bitcoin, for the last several months, has been taking the financial industry by storm.

Its disruptive nature has created a stir within the financial landscape of banks, hedge funds, Wall Street, institutional fund sources and just about any recognized financial mechanism in the modern world.

Bitcoin Growth Chart

Doomsayers have not been able to destroy or discourage the rapid growth and value of this new form of peer to peer exchange of value.

From its initial birth in 2009 with almost a nonexistent value of $0.01, a single bitcoin has risen to over $12,000 as of December 5, 2017.

By the end of 2017, it could very well reach $15,000 per bitcoin.

There is no vehicle of exchange or trade that has ever come close to this type of growth in such a short period of time.

In case you’ve not heard of bitcoin, let me digress and share with you a bit of its history.

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto.

Better investment than cryptocurrency

He remains anonymous to this day.

Transactions are made without a middle person – meaning, no banks! This is referred to as a peer to peer transaction. There no transaction fees and no need to give your real name.

Because banks are cut out of the transaction, this is one of the most attractive points about bitcoin.

There are no transfer fees, no bank charges, no holding of your funds until available –say 5-7 working days – nor any of the other nonsensical fees that are attached to traditional financial transactions that only serve to provide billions of dollars in profit to financial institutions but add nothing to your bottom line.

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In fact, these fees take away from your value. Bitcoin is digital. No paperwork whatsoever.

There are only 21 million bitcoins authorized for issue and over 16 million are already in circulation.

Better investment than cryptocurrency

That means there are only 5 million more bitcoins that will be allowed to be created and circulated. It is expected that the limit will be reached in about the year 2140.

In case you are wondering if this time period is unrealistic, don’t worry. The fact that so many bitcoins have already been placed into circulation in only a nine-year period of time does not mean they will be all gone shortly.

If you decide to become involved with bitcoin there is still plenty of time and opportunity to do so.

Although 16 million bitcoins is already flowing around the globe, don’t fret.

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Based upon the way bitcoins are produced the process is designed to slow down the creation of bitcoins as they are produced such that supply and demand are reasonably controlled. To see how this process is designed to work, check it out at bitcoin wiki.

Bitcoins are mined similar to gold. That means a process has must be followed that shifts through ordered steps and over a number of transactions, the miner is rewarded with a portion of a bitcoin until it equals one bitcoin.

After a preset number of transactions and steps are satisfied the miner is rewarded with a bitcoin to either hold for value growth, to sell or exchange for goods and services.

Now Back To The Point of 5 ReasonsWhy Bitcoin Is Better Than Stocks and Mutual Funds!

  1. Excepting, the small fee charged for purchasing bitcoin from an exchange (1%-3% of the amount at the time of purchase) there are no fees associated with bitcoin.

    Once it is purchased buyers have the option of simply holding on to bitcoin in a bitcoin wallet or other safe place and watch it grow. Of course, there are no guarantees and bitcoin value can go down just like stock, but history shows bitcoin, even when it goes down, has not been going below the level it was last valued at before it took a dive.

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    In fact, it historically has roared back and gone further up the growth track.

By contrast with the purchase of stock, unless you are intrepid enough to try it solo, you will be required to deal with a stock or mutual funds broker. You will be charged for transaction fees and broker fees and likely other special fees that are associated with the maintenance of your account whether or not you gain or lose on the stock or mutual fund investment.

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Also, it is very unlikely that the stock or mutual fund will increase in value the same way bitcoin is growing.

  1. Ease of selling or exchanging – Stocks and mutual funds are not as flexible for selling as bitcoin. Because you are directly in control of your bitcoin account you can move very quickly to sell off bitcoin if you become uncomfortable with the way the market is going.

    This allows you to hedge your losses. There is no need to call a broker. You are in charge.

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    In addition, you avoid the costs of transactions of selling the stock. Bitcoin transactions are immediate and require no paperwork and are without the hassle of any kind and extremely safe.

  2. Bitcoins’ growth factor is much greater than any stock or mutual fund you can presently buy.

    Bitcoin over the last several years and months is racking up over 500% returns and higher and continuing upward at a steady pace. Stocks, bonds, and mutual funds, at best, show a history of less than 40% over the last twenty years.

    Which investment strategy is right for you: Value investing or digital currencies?

    Clearly, bitcoin has proven to be a better investment than traditional stocks and mutual funds.

That is not to say that one should cash out stocks and/or mutual funds that may be performing well in their portfolio. It does suggest, however, that one should seriously look at bitcoin as an additional investment source for a huge return on investment. It’s always wise to diversify.

  1. Bitcoin has flexibility and can be used just like money on the spur of the moment.

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    Stocks and bonds cannot. Not only is Bitcoin an investment vehicle but its versatility is fantastic.

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    If you want to buy a car, groceries, take a vacation, acquire a home or any number of other things that money can buy, you can do it will bitcoin as well.

Merchants and businesses recognize bitcoin as a measure of money exchange for goods and services all over the world now. Overstock, Microsoft, Dell, Expedia and thousands of other small, medium and large organizations are now welcoming bitcoin.

Here is a list of major outlets accepting bitcoin.

Stocks and bonds would need to be cashed out first in order to do the same thing and again the fees and costs associated with doing all of that would have to be paid which lessens the amount of money that would ultimately be available for such purchases.

Bitcoin even has its own credit/debit card supported by Visa that can now be used the same as any other credit or debit card.

This means that anywhere Visa is accepted you can now spend bitcoin and purchase the same way as you use your current Visa, MasterCard, American Express or other credit cards.

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Obviously, you can’t do this with stocks and bonds.

  1. Bitcoin provides secrecy and safety about your personal holdings and worth.

One of the main advantages of having a bitcoin account is its secrecy. No one but you and those that you choose to trust can know what the value of your holdings are.

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They are not yet subject to the regulation of the Security and Exchange Commission (SEC), like public stock companies and therefore there is no “public” record of what you might be holding.

Even the IRS cannot access your bitcoin account and determine what you own or where the funds are. Currently, the only way the IRS’ can find out what you own and have earned with regard to your bitcoin is the requirement that you must report any gain on your bitcoin accounts as capital gains when you file your income tax return.

That still does not reveal anything about how much you have stored in your account.

Stock, bonds and mutual funds are subject to tracing and determination of value and where they are and allow other people and the government to get into your business.

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Not so with bitcoin. Only the wallet where you store your bitcoin has any knowledge of what your account value might be. At this time wallets are not sharing that information with anyone, including the government.

You can also store your bitcoin in a safe place such as a hard wallet that is encrypted on a device you hold yourself like a USB port and no one but you will have access to that information unless you decide to share it.

Overall, bitcoin is simply a better investment alternative than stocks, bonds or mutual funds in today’s financial market.

If you would like to know more about bitcoin and cryptocurrency get my Free EBook –Bitcoin Basics – which gives a history and understanding of bitcoin and how to use it and other cryptocurrencies to build a solid financial future.

Here’s to your wealth,

Better investment than cryptocurrency