Why Do People Buy Bitcoins?

  • There are many reasons why people buy Bitcoins and to list them all would take too many pages and bore most readers to clicking out so we will cover some of the most basic reasons.

    Bitcoins are a real currency that people can use to purchase services and goods just as they would with any government created currency such as the $US Dollar. People buy Bitcoins to pay for services and goods because there are many vendors around the world that do not accept government backed currencies. People exchange their government currency to buy Bitcoins to pay for those services and goods. Bitcoins are an easy way to pay for goods and services instantly across the world from one person to another without having to use any banks or governments.

    People buy Bitcoins as an investment. Bitcoins have a value and despite which way the value may be going it does carry a value. Similar to Gold there is a very limited supply of Bitcoin and the associated value of the Bitcoin rises and falls similar to Gold. Anything carrying a changing value creates a market for people to speculate on that value. For example lets look at the historical prices of Bitcoin since it's creation back in 2009-2010. The price of Bitcoin in March 2010 $.003, July 2011 $123, April 2013 $266, November 2013 $1,242, May 2017 $2,000, December 2017 $17,900 and as of December 2018 it was back down to $3620. Big swings in values create great opportunities to speculate to make money or lose money as is the case with any speculative investment. If you bought 100 Bitcoins in March of 2010 for $3.00 your Bitcoin Investment would be worth approximately $362,100.00 which is certainly not a bad 8 year return on your investment.

    If you bought 100 Bitcoins in March of 2010 for $3.00 your Bitcoin Investment would be worth approximately $362,100.00 which is certainly not a bad 8 year return on your investment.


    People buy Bitcoins to trade for other digital coins. Bitcoin is the most popular and has the largest market capitalization of all the digital coins on the market but if you want to buy other digital coins you most likely will have to exchange your Bitcoin for that specific digital currency. You cannot buy many of the other digital coins with government backed currency.

    People buy Bitcoins because they hear about it from friends, family and see it in the news. Many people do not want to miss being a part of the latest trend in the digital world. They think if everyone else is buying Bitcoins then I might as well buy some too at least I will be able to talk about it in conversation. I might as well try and learn about what it is that everyone is talking about. There is an old saying “Keeping Up with the Jones” which basically says that if your neighbor “Mr. or Mrs. Jones” is buying Bitcoins or something else that you don't have then you have to buy some Bitcoins to “keep up with the Jones” because you don't want them having something you don't.

    Whatever the reason for you or anyone else wanting to buy Bitcoins is a unique and individual decision. Certainly we believe one of the best, secure and simplest place to buy Bitcoins is BitcoinAlley. We hope you buy some Bitcoins today!