2022-1-23 18:46 |
If you're looking to invest in cryptocurrencies. In that case, you have a lot of options at your fingertips, so much that it can be hard to decide what assets to invest in or what cryptocurrency to buy. Over 8,000 cryptocurrencies are begging for your attention, but there are also a few that stand out. Bitcoin is at the top of that list.
Odds are, you might already be considering buying some, but you're not sure why you should choose it over the rest of the other assets. If you belong in this category, good news because you will learn five reasons why you should buy Bitcoin in this article.
1. Bitcoin is the currency of the future.In 2008, not many people were willing to accept bitcoin as a store of value. However, individuals and beyond have a growing wave of its applications.
There are Bitcoin ATMs worldwide for individuals who intend to make bitcoin transactions. This need arises from its growing demand. Considering just America, over 100 million bitcoin wallets are held by over 15% of Americans. Of that percentage, more than 1 million users buy and sell bitcoin on a daily basis.
2. The Scarcity of Bitcoin will bring more value in the futureThe fiat currency system proved to be quite effective, but there was a basic flaw. Any nation's government can decide to print as much of it as they'd like to. Even though it can be a good way to create or control inflation, it means that the value of money is subjective to whatever the government chooses to do at any point in time.
Here's where bitcoin is very different. Bitcoin is limited in supply. Only 21 million bitcoin exist and can ever be minted or mined. This helps to protect its value as it is not subject to the laws of inflation or deflation.
The scarcity of bitcoin makes it more like digital gold. It is difficult to mine; it is limited in supply. Think of it this way: the demand for bitcoin is continually growing. From basic economics, the greater the demand, the greater the price of an asset. Now, add the fact that bitcoin is very scarce; the value is even bound to increase to more astronomical levels.
Remember when bitcoin was trading at less than a dollar? Now, it's bounced up more than 5 million percent above that. That rise is almost unimaginable, but it happened. Guess what else can happen in 20 years when you choose to buy bitcoin now.
3. Bitcoin allows you full anonymity and privacy.Bitcoin operates a fully decentralised system. Unlike centralized systems that are controlled by third party central banks that have the ability to hold or suspend accounts, bitcoin transactions can be made without the watchful eyes of any institution or agency. Your bitcoin cannot be confiscated. Your wallet cannot be frozen. More companies and well-known institutions adopt cryptocurrency for payments and settlement of purchases. The blockchain ledger system of record keeping is even more useful for institutions. Transactions are recorded as they happen. They cannot be altered, and every transaction is adequately confirmed before any action is taken.
Even banks are beginning to experiment with bitcoin. Some countries have already accepted bitcoin as their first choice method of payment.
Also coupled with anonymity, bitcoin allows you to transact faster. All of those put together make bitcoin the perfect choice for investment.
4. Bitcoin has a first-to-market advantage.Just about any product that's the first of its kind has an advantage over the other products in the same class. The same goes for bitcoin. It is the alpha of all cryptocurrencies. The pioneer asset for other cryptocurrencies.
This means that while new cryptocurrencies and altcoins will continue to rise by the day, bitcoin will still be the most trusted. The price tells the story. Bitcoin is still the most valuable cryptocurrency out there. But, if that doesn't convince you, check the market cap. It shows that more people are willing to invest in bitcoin than any other cryptocurrency.
It might be easy to forget about dogecoin or litecoin, but do you ever see bitcoin going away? Can you imagine it fading into the background and fizzling out like a cloud of steam? I can't, and I bet you can't too.
In fact, I challenge you to gather a hundred people or as many as you can and give them 10 seconds to mention five cryptocurrencies. I assure you that bitcoin will appear on every single list. It's settling for every investor to know that his chosen digital currency or store of value is the most trusted of all the others and has the best results in terms of value and market capitalisation.
5. Bitcoin makes for a safe and secure investment.One of the reasons people trust bitcoin so much is its clear-cut reputation. Bitcoin has a track record of safety. There's no doubt about its regulation with the SEC, ASIC, and other crypto regulating entities. Other cryptocurrencies might make for scary investments. For one, you have to research its founder, research whether it's regulated and controlled, and consequently decide whether it would make a worthy investment or not. The credibility of bitcoin, however, cannot be doubted. As long as you have a well-protected crypto wallet to hold your addresses and keys, your bitcoin couldn't be any more secure.
Ending NoteThe facts are there. Bitcoin makes a great investment. But ultimately, it's up to you to decide whether bitcoin would make a good store for your value or an addition to your investment portfolio. It's your money, after all. Whatever you decide, though, make sure you've weighed the upsides and downsides before reaching that conclusion. Most importantly, be sure you've thought through all these reasons.
Remember, the cryptocurrency market is very volatile. Do not invest money you cannot afford to lose. This is not investment advice. Do more research before you buy bitcoin or any other cryptocurrency.
The post 5 Reasons you should buy Bitcoin appeared first on Coin Journal.
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