What Is Bitcoin and the Blockchain and Why It Is Important to Invest Now

There is increasingly growing interest and buzz around bitcoin these days. You may have heard of it before or not. Either way, it is a multi-trillion-dollar financial industry that is practically flying under the radar of most people (only about 2% of the population is even aware of its existence), which makes it a prime time to get positioned before it hits the mainstream. And the time is now because cryptocurrency awareness is going viral. Even some universities are teaching classes on bitcoin, cryptocurrencies and blockchain technology!

What is Bitcoin Exactly?

Bitcoin is a digital currency (or digital money), that is electronically held, which means it is not tangible like fiat currency (dollars, euros, yen, etc.). It was created cryptographically, and thus it is a cryptocurrency. It runs on open-source software and it is not controlled by entities. It is decentralized and not governed by banks or government.

What is the Blockchain?

Blockchain technology is where bitcoin and other cryptocurrencies exist. The blockchain is also used for other applications other than cryptocurrencies, such as running smart contracts, for example. In a nutshell, the blockchain is a digital ledger that is decentralized. It stores records of all transactions that occur within it and is run by a peer-to-peer network. This means that individuals and businesses use it to transfer digital assets to each other via the Internet with no third party (i.e., banks, governments) needed.

The Importance Blockchain Technology and Investing in It

From a business perspective, blockchain technology can improve business processes and significantly lower costs. It will also allow businesses to offer more benefits of service to customers. For instance, financial institutions could use blockchain technology to improve processes for things such as settlements and insurance.

From an individual perspective, blockchain technology offers opportunities for significantly high returns on cryptocurrency investment as compared to traditional investments.

Blochchain technology and cryptocurrencies are quickly proving to be an inevitable part of the future of money and finances in the global economy. It is something that will soon become mainstream in the world financial market, and those who invest early as early adopters of this amazing innovative technology will be among the newest millionaires in the coming years and beyond.

We are in the third big wave of the Internet. The first being websites and domain names (dotcom boom), the second being social media (dating sites, Twitter, Facebook, YouTube, etc.), and the third blockchain technology, bitcoin and other cryptocurrencies. It’s a great time to get positioned.

Top 5 Benefits of Investments

From our childhood days, we are taught to save money from our pocket to buy the belongings we wanted the most. This casing of mind carries to the age of maturity and we try to save money for the thing we want the most. But here we commit a drastic mistake of life that makes a difference of becoming successful or reduced in terms of financial amplification.

To understand the investments; we must define the investment first.

What is Investment?

According to Investopedia, An investment is an asset or item that is purchased with the hope that it will generate income or will appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will be sold at a higher price for a profit.

What are its top 5 benefits?

1) Financial Independence

Financial independence means you have enough wealth to live off of without working. Financially independent people have enough assets that generate income without any physical work as their money is doing work for them.

How to achieve Financial Independence?

Here are the best tips to become financially independent:

· Try to increase your income.

· Plan your savings every year.

· Select profitable investment options.

· Decide your financial goals.

· Try to stay away from loans and debts.

2) Safeguard against the Inflation

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It can be considered as the ageing of the value of money over a time.

In Economics, Inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy

The value of assets keeps on increasing due to inflation. As a result, the investments are not only safe but also increased by the time. Hence, It acts as an uphold against the Inflation

3) Achieve Financial Goals

When we invest, we put our money aside for long-term goals such as retirement, International holiday trip, Luxury home with a car or a child’s education.

The Investments ensure us to achieve all our long term and short term goals at a precise time.

4) Increase Wealth

Investing isn’t a mode to get rich quickly. It takes time, patience, and awareness. It requires analytical studies of opportunities available and makes well-versed choices of where to place your investment so it provides huge returns. If the things are performed in a spot in order the results are almost guaranteed.

5) Provide a source of Income

Some funds specifically set out to provide investors with a monthly income while others such as many property funds pay out dividends monthly, as well.

Most of the monthly income funds attempt to offer 11 monthly payments of a similar amount and a 12th that varies. The exact level of income will depend on the fund’s performance.

What are the ways of Investments?

Suitable Investment Options are stated as follows:

· Real Estate.

· Individual Stock.

· Mutual Funds.

· Corporate Debt.

· Government Bonds.

· Commodities (Gold, Silver etc).

· Liquid Funds.

· Fixed Deposits.