The very idea of using digital currencies in a world dominated by banks and centralized systems sounds almost too good to be true. And some keep on claiming it is too good to be true. The main question here is the one regarding investment return.
To put it simply, is Bitcoin, or any other such currency for that matter, capable of generating return of investment. It is a question many people would like to hear answered. If you are one of them, simply keep on reading to get the latest update on the matter!
Bitcoin ROI (Return of Investment)
It has been some months since the world experienced a new form of malware attack. Victims of the attack were asked to pay a certain amount of digital currency units in order to have their files unlocked again. Ever since that happened, people have been giving a lot more thought to whether we should all start using Bitcoins. There are some very serious arguments for this scenario, one of the most important ones being the rise in value that Bitcoin has experienced over the years.
When it was first released, Bitcoin was worth next to nothing. You could get one for a measly $0.003. This has changed significantly, and now it is worth around $7,000 , whit a peak of almost $20,000 reached last December. While many still remember a programmer who used 10,000 Bitcoins to pay for two pizzas, nowadays you could splurge and eat at the finest restaurants for a long time with the same amount of Bitcoins.
What has happened to this currency to make it skyrocket to $20k?
Arjun Kharpal, correspondent for CNBC in London UK, has some answers to that question. He says that one of the deciding factors is definitely the fact that Japanese legislation has allowed retailers to accept digital currencies. It is no wonder then that 40 percent of all transactions made with Bitcoins can be traced back to Japan. The next factor is the fact that there isn’t a real contender among other cryptocurrencies. And last but not least, the global economic situation is fairly uncertain, which has made people flock to Bitcoin investment sites.
Because of all this, there is a high percentage of businesses, particularly smaller ones, that are seriously considering Bitcoin as a payment method. There are those who believe it to be a bad business move, but the only argument they have so far produced is the one about the high-risk nature of such endeavors. This can be easily disregarded simply by stating the obvious – no business is a risk-free venture. And it seems that Bitcoin is no more risky than anything else.
Moreover, it seems we have finally been given an answer to one of the most important questions regarding digital currencies – the question of return of investment. Considering Bitcoin’s meteoric rise in value and the fact that more and more people are using it, it seems safe to say this currency is capable of generating ROI. You only need to figure out for yourself whether you want to be a user or an investor as well.