Bitcoin doubled its price in a month, a lot of people are wondering when will this bubble burst? Well, that type of thinking is a mistake. John McAfee, founder of McAfee, predicts that Bitcoin will reach $500,000 in the next three years.
Why is Bitcoin not a Bubble?
Bitcoin is not a Fiat currency, this means extreme growth cannot be considered a bubble. It is not just paper money that some government produces for a country, it is much bigger. It costs over a $1000 to create a bitcoin adding electricity and computing costs. The value of Bitcoin depends on the number of transactions that are made, which keep growing every day. And as people move into Bitcoin for payments the value of bitcoin increases. People think it is a bubble because of the usual basic concept:
People make easy money = Bubble
But we can't build knowledge with these words. In the case of Bitcoin, it increases in value when more people start using it and this extreme growth is not a bubble, it shows us how the society introduces themselves into cryptocurrencies.
Why should you invest?
You should not think of cryptocurrency investments as a type of gambling, you obviously can, but with a little bit of research you can make an intelligent investment. Bitcoin is definitely a good investment, its value will only rise in a way humanity has never seen before. I'm sure that in the next three years this cryptocurrency will bring wealth to a lot of people. If you are looking for a good long-term investment then I would for sure think about Bitcoin. Check it out, do your research and let's see what you think.
Bitcoin will be the currency of the future. Remember, everything that I say is only an opinion and you should always do your own research for your investment. Thanks for reading, follow this account to stay informed.