CoinDesk wrote in January 2021 that Bitcoin’s value has reached an all-time high of above $40,000. This is less than a month after making a record of $20,000 for the first time. CEO of digital asset company Panxora, Gavin Smith, said that it will not be a shock if Bitcoin even reaches $70,000 to $80,000. He added that in the medium term, this makes Bitcoin a great asset.
Two months after, this cryptocurrency has made another mark when it hit $51,202. It did not come as a surprise then when CEO Elon Musk announced that Tesla purchased Bitcoin worth $1.5 billion. He added that the company will also start accepting payment in Bitcoin. But what makes Bitcoin attractive to investors and traders?
Advantages of Investing in Bitcoin
The European Business Review provides 5 reasons investing in Bitcoin becomes appealing:
1. Bitcoin prices get higher as the demand for and value of the cryptocurrency increases. The increase in the number of people using Bitcoin drives the demand and value to go up. Because of this trend, small and large businesses will, in no time, get attracted and choose to use it. As this indicates that profit will increase manifold, it is but right to invest.
2. Understanding Bitcoin investment is easy, unlike other conventional ones where these require you to spend money and take you a long time to fully learn even the basics. With the help of excellent platforms, new investors can easily learn about investing in Bitcoin and making profits.
3. In this modern world, conventional flat currencies may become obsolete as it poses worries. For one, it takes days before you receive your funds in an international transaction. Likewise, it brings in more taxes. With the use of Bitcoin, all these and other issues will be addressed.
4. Bitcoin enjoys being on top of other cryptocurrencies. As it was the first player in the market, things work to its advantage. While other cryptocurrencies are still struggling to look trustworthy in the eyes of people, Bitcoin has already earned the trust of the people as a safe and reliable company.
5. No organization or government owns Bitcoin; it is a public currency. However, a government must approve before the use of Bitcoin. Fortunately, almost all governments around the world trusted the cryptocurrency because of its integrity and high-security features that they have given the people the opportunity to transact and store assets using it.
Prospects for Panama
With countries adopting the use of cryptocurrencies, Panama is not left behind.
Bitcoin, no doubt, is enjoying increased popularity in Panama as it ranked fifth in Latin America with the most number of Bitcoin ATMs (BATMs) installed. Of the 11 BATMs in the capital, two are visible in Albrook International Airport. It is not surprising then if Panama makes it one of the Bitcoin-friendly countries around the globe.
The market for Bitcoin buying and selling in the territory has improved. Among the countries in Central America, Panama is even one with the biggest offer for these types of transactions.
Using Bitcoins, people can buy food, clothing, and others. Even some transport services have begun to accept Bitcoins as a mode of payment.
In buying Bitcoins, Panama also offers several channels that you can easily choose based on your preferences: exchange houses, person-to-person, and ATMs. In ATMs, users can buy Bitcoin using their cash instantly. It only asks for a telephone number for confirmation.
As for the exchange houses, each one varies on payment mode, withdrawal limit, transaction fee, and verification process. Some exchanges also require Bitcoin buyers to get their own wallet before they can purchase the cryptocurrency. Wallets acceptable in Panama are available in three types: software wallet, hardware wallet, and cold-storage.
Specifically, the Sortis Hotel and the Picasso restaurant in Coronado Beach are only some of the locations where buying cryptocurrency is allowed.
Proof of the popularity of Bitcoin, as well as the existence of other digital currencies, in Panama is the call for the regulation of cryptocurrencies. In February 2021, the Panamanian lawmakers were set to review the bill, authored by Deputy Rolando Rodriguez. It is meant to regulate cryptocurrencies in Panama and to keep up with other countries when it comes to this concern. The bill aims to establish a continuing program that will focus on the digitization of the economy of the territory and a legal structure so businesses can do transactions using digital currencies, such as Bitcoin. Additionally, it hopes to offer financial freedom to Panamanians that have no access to the typical banking system.
Rodriguez also looks forward to strengthening the Disability, Old Age, and Death fund, as well as the social security fund, using cryptocurrencies. He believes that it’s a crucial time for the national legislature to create crypto-friendly policies in Panama.
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