What is Bitcoin?

Bitcoin is a currency of digital money that can be sent between users over the internet through the Bitcoin peer-to-peer blockchain network without the need for intermediaries like banks. This means the currency is decentralised. Bitcoin is a non-sovereign asset, meaning it’s not issued or controlled by any government or central bank.

Why invest in Bitcoin?

Bitcoin is still in its early days and it brings with it a totally new way of storing and transferring value. In this next wave of our digital revolution, digital currencies led by Bitcoin, are emerging as what many believe to be the greatest innovation since the advent of the internet.

The foundations that have driven Bitcoin’s increasing value over the last decade still exist. Here are 4 reasons why now may be the time to invest:

1. It’s still early days
   Lots of people think they’ve already missed out on Bitcoin’s growth, however, it’s value today is only a tiny fraction of the trillion dollar markets that it stands to disrupt. What if it becomes the currency of choice for a single unstable nation plagued by hyperinflation? What if it becomes even modestly successful in mobile payments? These are just some possible use cases.
   
   
2. Generational shift in wealth
   With an estimated $68 trillion in generational wealth changing hands over the next 25 years, we may see more investment dollars make their way into alternative assets like Bitcoin. A recent survey from Blockchain Capital shows millennials are much more likely to buy, hold, and use Bitcoin – the majority of which have not even hit their prime earning years yet. As a new generation is evaluating where and how to invest their money, Bitcoin is increasingly part of the mix.
   
   
3. Network fundamentals are strong
   Through a global transaction network, Bitcoins can be sent securely across borders, in any amount, at low costs, as seamlessly as a text message, and without the need for intermediaries like banks. Over 100,000 merchants worldwide now accept Bitcoin. The number of active wallet addresses on the Bitcoin network continues to grow – a key sign of a vibrant and growing financial ecosystem – while the methods for sending, receiving, and storing Bitcoins continue to improve at both the consumer and institutional levels.
   
   
4. Diversification is a rewarding strategy
   Stocks and bonds don’t seem to be going away, but investing in digital currencies, like Bitcoin, may help investors build even more diversified portfolios. Bitcoin has historically performed as an uncorrelated asset, meaning it does not necessarily move with stock or bond markets. As a result, it may provide diversification benefits to an investment portfolio that previous generations of investors could only have dreamed of.
   
   For the first time in history, value can be sent anywhere in the world at the same speed as information, in a secure and reliable way. As a user, you do not need to trust other users in order for the system to function, as validation and verification are continuously occurring within the Bitcoin ecosytem, without interference its from users or a trusted third-party. For this reason, Bitcoin is often referred to as ‘trustless’.
   
   This is a major departure from conventional economic, political, and social systems run by a handful of large centralised institutions. Bitcoin is powered by millions of peers within a globally distributed network, democratising information and value in incredible new ways.
   
   The age of Bitcoin has only just begun, and many will say that the only better time to invest was yesterday.
   
   

More information about Bitcoin

Bitcoin, with symbol ₿ and ticker BTC, was invented in 2008, and was the first example of a cryptocurrency, a growing asset class that shared some characteristics of traditional currencies, with a verification method based on cryptography.

There is a limit of ₿21 million that can be mined. The supply is tightly controlled by an underlying algorithm. So, like gold, there is a limited and finite supply. Unlike the currencies issued by banks and governments, Bitcoin is not vulnerable to losing its value if the centralised issuing authority breaks down. The decentralised system of Bitcoin can continue to operate as long as there are members in the network.