Advertising
Advertising

10 Reasons You Should Own Bitcoins

10 Reasons You Should Own Bitcoins

Bitcoins have been all over the media lately. As Tim Draper believes: “Bitcoins are opening up a space that will create a revolution like the personal computers did in the 1970’s or the internet did in the 1990’s” . This article presents 10 reasons why you should be owning Bitcoins:

1. Bitcoins are independent of any central authority

Bitcoin is a digital currency that originated in 2009 by a software developer called Satoshi Nakamoto. Bitcoins are independent of any central authority. Therefore, no government nor central bank rules over them

dollar-vs-euro-8815384

    2. Lower fees than other traditional online payments

    Bitcoins come with almost no fees. In addition, all the apps and services that have been built around the Bitcoin ecosystem, and which the vast majority of end users end up using also carry lower fees than other traditional online payment methods.

    Advertising

    cost-cutting12

      3. Its the largest cryptocurrency out there

      As of now, there are lots of cryptocurrency on the internet. However, Bitcoins are by far the one with the largest user adoption and market cap. Therefore, if you have to pick a cryptocurrency, go for Bitcoins!

      cryptocurrency

        4. Europe just regulated it as a commodity exempt of VAT

        Europe has just approved regulations that qualify Bitcoins as a commodity. Therefore, they are exempt from VAT. The price of bitcoins is defined by demand and supply. The new regulations are likely to produce an increase for the demand of Bitcoins as they are regularized and exempt of tax within the European monetary union.

        Advertising

        europe_bitcoin

          5.  High volatility in the equities market can positively affect the price of bitcoin

          2015 has proven to be a highly volatile year for the equities as stocks markets around the world have been rallying up and down. Bitcoins are seen for some as a substitute to gold and therefore as a mean to store value. High volatility in the markets can create an inflow of money into Bitcoins. During the coming months the markets are likely to be highly volatile.

          150602120402-stock-bond-volatility-780x439

            6. More and more companies are creating tools for the Bitcoin ecosystem

            Venture capitalists have poured tons of money into the Bitcoin ecosystem. Different services and apps enabling the end user are now available for the non-technical consumers. As more products are build and used in the bitcoin ecosystem, the adoption rate for Bitcoins will increase and its demand with it. This mean you can easily turn a few hundred dollars into a few thousand dollars with enough increase in demands.

            Advertising

            screen-shot-2014-07-11-at-6-42-33-am

              7. To prevent a possible bank run (Think Greece or Argentina)

              Remember bank runs? You do not have to go that far in time. Both Argentina and Greece have suffered bank runs in the lasts years. Bitcoins can be a solution to store wealth outside of the traditional banking system and therefore avoiding people to panic when bank runs take place.

              This photo dated October 24th, 1929, shows a view of people rushing to a saving bank in Millbury, Massachusetts as the stock market on Wall Street crashed, sparking a run on banks that spread across the country.

                8-. Upwards trend in the coming month

                If we know something about Bitcoins is that they are highly volatile. Through 2015 it seemed for a while that the cryptocurrency would find a price resistance to stick to but the rally in October and post fall in November proved this stability wrong. However, Bitcoins are on upward trend towards $600 per Bitcoin that should start to stabilize through 2016.

                Advertising

                bitcoin-roller-coaster

                  9. Most secure way to pay online

                  The bitcoin protocol provides the most secure system to make online payments and with so many payment processing system creating products for the end user, bitcoins are definitely one of the most secure options to proceed online payments.

                  Secure_Online_Payments-512

                    10. To be an early adopter of the powerful blockchain technology

                    The most powerful about bitcoins, is not the bitcoin (aka the cryptocurrency). But the blockchain that they have behind. A blockchain is just a confusing name for a share data base and it will have lots of large scale applications. Bitcoins allow you to become one of the early users in this technology that can revolutionize the world.

                    graph

                      If you want to learn more about Bitcoins, the powers of the blockchain and why Bitcoins are likely to increase in price over the coming months check: My First 20 Hours With Bitcoin

                      Featured photo credit: Bitcoins via esteve.co

                      More by this author

                      10 Reasons to own bitcoins 10 Reasons You Should Own Bitcoins 12 Books That Influenced Elon Musk Free business class upgrade 10 Ways to a free upgrade to business class Free Hotel Upgrade 7 Ways to Score a Free Hotel Upgrade nyc sky 10 Fall Motivational Quotes

                      Trending in Money

                      1 How to Nix Your Credit Card Debt in Less Than 3 Years 2 Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2019 3 How to Use Credit Cards While Staying Out of Debt 4 How to Use Debt Snowball to Get out from a Financial Avalanche 5 How Personal Finance Software Helps You Get More Out of Your Money

                      Read Next

                      Advertising
                      Advertising
                      Advertising

                      Last Updated on April 3, 2019

                      How to Nix Your Credit Card Debt in Less Than 3 Years

                      How to Nix Your Credit Card Debt in Less Than 3 Years

                      Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

                      By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

                      This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

                      Hint: there are ways that are easier than you think.

                      1. Consider Consolidating Multiple Credit Cards If Possible

                      This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

                      It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

                      Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

                      Advertising

                      Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

                      My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

                      Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

                      2. Try to Pay the Full Balance You Spent Each Month at the Very Least

                      You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

                      Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

                      If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

                      3. Pay Extra When You Can – Every Small Amount Counts

                      This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

                      Advertising

                      It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

                      4. Create a Plan on How to Pay Extra

                      Back to the main point, having this plan is giving you one less thing to think about.

                      This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

                      For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

                      Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

                      5. Cut out Costs for Services You Do Not Use

                      If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

                      In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

                      Advertising

                      6. Get Aggressive About It

                      Consider these points:

                      Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

                      Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

                      Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

                      Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

                      7. Reevaluate Your Progress at Set Intervals

                      Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

                      By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

                      Advertising

                      Finally (and most importantly)…

                      8. Keep Trying

                      Do not get discouraged. Pushing it off will make it worse. Just keep trying.

                      Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

                      Start Knocking out Your Debt Today

                      The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

                      More Resources About Better Money Management

                      Featured photo credit: Pexels via pexels.com

                      Read Next