Why you should invest in Bitcoin right now? Source: pexels.com
Cryptocurrency is changing the world and is the future of currency. People who are a part of the crypto community will rattle off thousands of reasons to start investing in it.
It is essential to note that people who have invested in cryptocurrency, especially bitcoin, have experienced explosive profits and success. In a way, bitcoin is a global currency that solves all contemporary privacy and banking concerns and provides independence to the people from third-party institutions.
These reasons have led to the acceptance of bitcoin globally, with emerging economies investing in them rigorously. In November 2021, there were approximately 81 million users of bitcoin globally.
While the predictability of the returns on investment might be a problem, it hasn’t hampered people’s spirits when investing in bitcoin.
Here are a few reasons why you should start thinking about investing in bitcoin.
1. Greater Reliability Than Other Cryptocurrencies
Cryptocurrencies have opened an entirely new world of investment opportunities and motivated millions of people to take a shot and try their luck.
The cryptocurrency bitcoin is leading the way with its explosive returns on investment, greater reliability, and stability than other cryptocurrencies. It is labeled the safest and hottest cryptocurrency in the market.
For greater reliability and security, make sure that you explore the safest way to buy bitcoin before you dive into the market.
2. Independent Nature
Bitcoin is independent of other financial markets, i.e., if the stock market crashes in the UK or the US, bitcoin will be mostly unaffected.
As most of us know, bitcoin was created in 2009 in response to the stock market crash and the Great Depression. It was created so people could gain returns independent of the economic conditions prevailing in their countries.
Today, it plays the same role in a much more stable economy and acts as an alternative investment to diversify one’s investment portfolio.
3. Massive Growth Potential
Bitcoin has been accepted by the masses globally and continues to motivate people to pursue it as a mode of investment. Due to this surge and future feasibility, many economists and cryptocurrency experts predict that this market will grow at an unprecedented rate.
The price fluctuations have had many people question the credibility of bitcoin; however, after its fall in 2018, it has slowly gotten back on its feet and is now on the rise.
It has certain volatility that scares risk-averse people, but if you look more closely, you’ll see that bitcoin is on an upward trajectory.
Many organizations are now supporting bitcoin, and you can purchase their products or services via cryptocurrency.
4. Honey Badger of Money
Bitcoin has a decentralized financial (DeFi) system, i.e., it isn’t controlled by any entity. It is controlled and maintained by an open network of peers and has greater transparency than the FIAT currency.
Bitcoin is a highly suitable investment for the macroenvironment due to its independent nature. Government bans and restrictions and currency fluctuations cannot affect bitcoin. This makes it a lucrative and highly attractive investment.
5. “Stock To Flow” Is Easily Measurable
“Stock To Flow” or S2F is a relatively new concept in the investment industry and helps calculate the amount of scarcity of a good.
The stock represents the overall amount of circulating supply in the market, and the flow represents the exact amount of supply annually.
Bitcoin has a fixed supply being floated in the market for purchase and exchange; hence, its S2F is highly accurate.
Even though bitcoin has unpredictability, the market has always been able to move forward. Its recent surge in returns is a great example.
6. Bitcoin Cannot Be Confiscated
Your assets and FIAT currency can easily be confiscated or frozen by the bank or government because they control it.
On the other hand, cryptocurrency has a decentralized structure and is not managed or controlled by external parties, whether it be a business organization, a bank, or the government.
Only you hold the keys to your wallet, and only you have access to your tokens. In other words, only you control the bitcoin you own, and no entity can confiscate or freeze it. However, you need to be wary of hackers and use applications and tools to ensure safe and secure trading.
In 2021, German authorities couldn’t access and seize hacked bitcoins worth approximately $60 million due to the hacker having exclusive access to them.
7. Stability
Hyperinflation?is prevalent in the world right now. This leads to FIAT currency devaluation rapidly, causing great concern among the masses. People are switching to better investment options, which is where bitcoin comes in.
Nobody wants to lose their hard-earned money while doing nothing, and inflation is the one thing that does this deed. So, it is wise to ensure your money is put to good use.
Investing in bitcoin is a great way to do this as it is not subjected to the same devaluation and inflation as other financial assets. There is only a fixed supply of bitcoin in the market at the moment, and this capped supply decreases the effect of inflation.
Hence, there is great wisdom in capping the supply of bitcoin in the market to control inflation and ensure your returns in the long run.
Bottom Line
Bitcoin was a means to give power and control back to the masses after the economic collapse in 2008 and 2009. It was supposed to help people and economies get back on their track. Today, bitcoin is serving all these purposes and doing so much more. It is, indeed, the future of currency.
Hope the article is of help to you and you enjoyed it thoroughly. We hope the article not only gives you reasons why you should invest in bitcoin but also encourages you to make your investment portfolio diverse.
It is essential to keep in mind that as technology progresses, so are the options to invest. Tap the opportunities at the right time to get the maximum benefit and output.
Happy Reading.
SEE ALSO:
Pay Space
Our editorial team delivers daily news and insights on the global payment industry, covering fintech innovations, worldwide payment methods, and modern payment options.
