The cryptocurrency trade has gained momentum over the past few months. Many people have raised concerns if it is a viable investment, especially for Bitcoin the most popular crypto coin. Are you a Singaporean or and would love to know the worthiness of Bitcoin trade? As one of the major world’s financial city’s, Singapore is a hub of businesses, including the crypto coins business. The country has become well-known within the blockchain industry. But, is it wise to invest in Bitcoin now in Singapore and if so, how? Let’s discuss that beginning with what you should know first.
What Is Bitcoin and Is It Legal in Singapore?
It is a virtual, digital, and decentralized currency that is traded online. It is also the world’s first decentralized cryptocurrency having been launched over ten years ago. Though it’s not yet known by many, the crypto recently made a buzz drawing people’s attention. Fortunately, some countries like Singapore had long embraced the cryptocurrency industry, attracting many investors.
Since Bitcoin isn’t backed by any country yet, is it legal in Singapore? According to the Monetary Authority of Singapore (MAS), Bitcoin exchange is a decision that the authority doesn’t interfere with and need not regulate yet. So, exchanges don’t have to register to operate, something that has moved multiple blockchain companies to consider the country suitable for crypto investment.
Why People Use Bitcoin
There are several reasons why people use this e-coin. Some of them are as below:
- It’s a means of exchange. Just like physical currencies, BTC can also help you purchase goods and services.
- A store of value. If you have $ 10 in the bank account, you can let it stay there until you spend it. That’s similar to Bitcoin that can accumulate in a “virtual wallet” until you withdraw or use it.
- It’s safe. The trade uses software that keeps track of all transactions meaning that you can trace them right from the time you begin. The wallets also aid in ensuring your information is private, and no one knows about secret details.
- Reduced risk of inflation. Unlike other traditional currencies with governmental control, Bitcoin is completely decentralized with no regulatory body. The value of physical currencies can fluctuate and go down, or the amount of money printing can be limited. With Bitcoin, that isn’t a worry as inflation doesn’t affect its circulation.
- Ease of access. Banks regulate how much and frequent you withdraw money. You can access your Bitcoin at anytime and anywhere in the world and use it the way you want. It has the best monetary policy; no bank can obstruct payments or close your account.
Bitcoin Transactions in Singapore
Trading BTC in Singapore is relatively easy. You can buy it in various ways, and the three major ones include:
- Bitcoin Exchange. This involves purchasing them from platforms that bring buyers and sellers together to facilitate the process at a small interest. These exchanges are either international like CoinBase or Singapore-based like FYB-SG, CoinHako, or itBit. Before you buy the coins, you’ll need to store them in a digital wallet to keep them safe. There are many types of wallets offered by the exchanges, you can choose the best.
- Brokers. These are third party individuals who can trade with you even without the need for platforms.
- Bitcoin ATMs. You can buy BTC from any of the ATMs within the city. The first to be installed was in 2014, and they work like regular bank machines. If you need capital to start your investment, there are several lenders like Fortune Credit can assist you.
In Singapore currently, there’s an increase in the number of merchants that accept BTC. You can make payments to them using Bitcoin. Some online vendors also accept crypto payments.
What Makes Bitcoin Investment Worthwhile Now?
Ever since its quick growth from $100 to more than $1000, BTCs have garnered lots of interest from global traders. Those who acquired it early are glad, and those discovering it now wonder if they still stand a chance to succeed. Let’s now see why you can be sure that investing in the e-coins will be an excellent deal now.
- The scarcity. Like gold with limited supply resulting in high value, BTCs are also scarce. With only 21 million available and around 18 million in circulation, they’ll become rare in the future.
- BTC is the most prestigious and popular cryptocurrency. Other competing cryptos like Ethereum or Litecoin can’t still match it. This makes it the most useful.
- Media influence. Anything that makes headlines is bound to progress if that’s the purpose. BTC recently made international headlines as a solution to transactions putting it in an appropriate position to boom.
- Stock market distress. Due to the ongoing pandemic, the global financial market is likely to fall in recession as measures set to control the disease spread have led to sharp losses. Bitcoin is known to do well during such periods, and indeed it is.
- Increased demand for digital payments. The Covid19 crisis has also prompted the need to use contactless, digital payments to help reduce the spread. BTC, which is a peer-to-peer electronic cash system, suits the current situation and may perform well if proper- required technologies like the Lightning Network are maximally adopted.
- Increasing acceptance. If the number of merchants and service providers in Singapore who accept BTC as a mode of payment increases, then the coin’s demand will increase as well.
Major Concerns about Bitcoin
While there’s every reason to invest in the crypto, some dangers/risks also emerge like:
- Market competition. Many new crypto coins may crowd the market and disrupt BTCs overall dominance.
- Increased regulation threats. If the government cracks down on the trade, it will lead to restrictions that may affect the industry.
- Mining concerns. The growing difficulty and expensiveness of mining could reduce the number of miners who can compete in the process.
- Scams. With the increasing popularity from rapid growth, frauds may start to appear, which could negatively impact on the trade.
- Negativity. The cryptocurrency industry is still full of discouragers. And, any negative media news about BTC can affect prices and value.
- Volatility. The highest risk of BTC is highly volatile prices and susceptibility to changes in the economy.
The Bottom Line
So, what does the future hold for Bitcoins in Singapore? And, is investing in them valuable? From the discussion, we can discern the viability. It gained traction this year, and we would expect better improvements. As an alternative for physical currency, BTC has some way through. Also, it’s still unstable because of its high volatility and other anticipated risks. You’ll need to understand the situation properly before embarking on the investment.