10 Reasons to Invest in Bitcoin
March 21, 2022 – 10:58 am
Even when you hear anyone talking about crypto that isn’t very familiar with it, you’ll listen to Bitcoin being included in the conversation. This is because Bitcoin started the crypto world in January of 2009.
Moreover, it took more than five years for another cryptocurrency to launch, Ethereum.
Bitcoin holds the largest value in the crypto market, is around $38,000 currently, and fluctuating day in and day out. There is no fixed value in Bitcoin or other cryptocurrencies; however, Bitcoin is less volatile than most cryptocurrencies and even many stocks!
Well, let’s not wait any longer and find out why Bitcoin is an excellent idea to invest in. In this article, we will discover the top reasons why investing in Bitcoin should be a priority for you.
8 reasons why to invest in Bitcoin
- Stable coin
As we mentioned before, Bitcoin offers more stability than other coins in the crypto market and even some S & P stocks. With it rising in value each year, its acceptance worldwide increases quickly. Bitcoin is the leader of the cryptocurrency world, so more investments and attractions to the crypto world also mean a big boost for Bitcoin. Of course, when we say this, we suggest that when you invest in the crypto world, you’re accepting volatility as a standard trait!
Furthermore, since it has a considerable value, if you buy Bitcoin, you won’t be losing much money if, in case, the value drops. Throughout history and since it came into the market, we have seen that Bitcoin always comes back from any drop and reaches new all-time heights in its value. In short, if it fails, then the entire crypto market will most likely do so.
- Bitcoin is a store of value
Capital flow is an essential factor in the cryptocurrency sector. Given that Bitcoin has the most considerable value in the crypto market, and the idea of money-seeking returns claims that Bitcoin has a high store of value.
For instance, it’s similar to when you invest in gold and hope that gold will appreciate and give a stabilized return because crypto and gold operate similarly. In other words, investing in crypto is similar to putting your money away for more challenging days. Let’s not forget that investing in Bitcoin would be a better option to do so when its prices are lower so that it’ll multiply when the market does better.
- Control over assets
The decentralized nature of cryptocurrencies gives you complete control of owning and storing your assets without involving a third party. Moreover, the value of Bitcoin or any other cryptocurrency isn’t dictated by intermediaries or exchanges. Hence, this gives traders the power to maximize profits only from taking advantage of exchange rates.
- Easy to measure Bitcoin’s Stock to flow (S2F)
Stock flow is an essential concept concerning the investment industry. S2F measures are used to quantify how scarce a good may be in the market. Overall, the stock represents the supply rate circulating in the market, while the flow represents the new supply rate each year. Bitcoin is a decentralized and open-source currency, so S2F concerning Bitcoin can be measured with 100% accuracy.
The commonly associated risks with Bitcoin are price fluctuations and volatility. However, from the history that we have seen with crypto, Bitcoin always manages to shoot up and recover from any market crash. Ten years ago, its value was at less than $100, and now, it is nearly $40,000 (currently).
Other risks become more personal; for example, it’ll depend on which site you choose to buy Bitcoin from. You need to carefully analyze and research each crypto site to ensure it has enough security layers. Binance and Crypto.com are excellent alternatives to go with. There are many crypto sites, but it is more of a personal issue if you lose or get your financial assets hacked!
- Transparency & long-term investment
The crypto world is popular because of the transparency it gives you because it is decentralized and open-source. Moreover, not all cryptocurrencies are excellent long-term investments. However, since Bitcoin has been around for over a decade and is considered the godfather of the crypto world, it is an excellent long-term investment choice.
You may be asking how is that possible?
From what we have seen in history, Bitcoin has always come back from great falls and reached new all-time heights. According to a study, expert investors predict that Bitcoin might reach a value of around $200,000 at the end of the year and even hit the one million dollar mark by the end of the decade!
In other words, you can even consider parking those Bitcoin investments as retirement funds. For example, if Bitcoin’s value is currently at $40,000 and you invest, let’s say $10,000, in five years, this value might bump up to over $100,000 if price predictions are accurate enough.
- Bitcoin investments are continuously rising
According to a study, there has been a 15% rise in Bitcoin investors from 2018. This is great news because if there are more investors, then the value of Bitcoin will only keep rising. Moreover, these investments via bank transfer, the cash app, and Paypal have kept growing as well. For example, back in 2019, the total revenue of Bitcoin’s cash app was at half a billion dollars, while now, it has surpassed $5 billion in early 2021.
- Excellent for macroclimate
Another excellent reason to invest in Bitcoin is suitable for the macro investment environment. You should realize that Bitcoin was born during the global recession of 2008-2009. Moreover, it was released when there were plenty of bank bailouts and at the time governments were struggling to control inflation. Furthermore, only a few years later, it was a global crisis where many governments were struggling on their own and had many bank bailouts.
During times of global crisis, Bitcoin increased in popularity and has offered a unique value since the day it went into the market. Even recently, its popularity is continuing to increase.
- Independent trading
Being accessible 24/7, crypto markets have a high level of flexibility in trading and organizing their trading during any time of the day. Moreover, it’s an excellent opportunity to help you gain wealth in a short period of time. However, here are a few things you should take into consideration before you enter the crypto market:
- Do your own research to eliminate information that may hurt your investments.
- Know that the crypto market is volatile and be aware of risks while investing in Bitcoin.
- Know about the role demand plays in the stability and liquidity of Bitcoin. Keep in mind that the higher the demand rate for investing in Bitcoin, the better it’ll be for the coin.
- Get a firm understanding of how crypto trading works and its regulations to ensure it complies with local laws. Always remember that crypto regulations will differ in each country. For example, it may be illegal to conduct crypto mining in one country, and in another, it is perfectly legal.
- Bitcoin has a supply limit of 21 million coins, so maybe in more than 100 years, it may reach the maximum supply limit.
- Carefully analyze where you are buying Bitcoin from. There are many scams both on the play store and the app store. Moreover, even if you have a stored value in a platform with weak security, you may lose all of your value from someone hacking into the platform. Research extensively from the most used crypto investing apps and platforms.
Wrapping it up
That’s all on the eight reasons you should invest in Bitcoin. Bitcoin is a leader in the crypto market, and we highly doubt that any other coin will surpass it. Even if it does, it may take a long time to do so. Holding the highest market cap and value, Bitcoin holds most of the crypto market together.
Comparatively, it’s more stable than other crypto coins and might even hit the million-dollar mark in the next decade or so. Most countries are starting to accept payments in Bitcoin, and even central banks are thinking about using it. Bitcoin gave spark to the crypto world and has altered how the financial world operates. Who knows that maybe Bitcoin will even change the way we pay one day!
So as an end, we can say that you should pay vast attention to the amount of money you invest in Bitcoin and try to invest when its prices are lower. Pay attention to the graphs every day because there might be a shift in Bitcoin’s value within the night!