If you are looking to invest in cryptocurrencies. In this case, you have a lot of options at your fingertips, so much so that it can be difficult to decide which assets to invest in or which cryptocurrency to buy. Over 8,000 cryptocurrencies are clamoring for your attention, but there are also a few that stand out. Bitcoin tops this 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, few 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. Bitcoin scarcity will bring more value in the future
The fiat money system turned out to be quite effective, but there was one fundamental flaw. The government of any country can decide to print as many as they want. While this 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 given 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 closer to digital gold. It is difficult to exploit; its supply is limited. Think of it this way: the demand for bitcoin keeps growing. According to basic economics, the higher the demand, the higher the price of an asset. Now add the fact that bitcoin is very rare; the value is even expected 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 decentralized system. Unlike centralized systems controlled by third-party central banks that have the ability to hold or suspend accounts, bitcoin transactions can be conducted without the watchful eye of any institution or agency. Your bitcoin cannot be confiscated. Your wallet cannot be frozen. More and more well-known companies and institutions are adopting cryptocurrency for payments and purchase settlement. The blockchain ledger system of record keeping is even more useful for institutions. Transactions are recorded as they occur. They cannot be changed and each transaction is adequately confirmed before any action.
Even banks are beginning to experiment with bitcoin. Some countries have already accepted bitcoin as their first choice method of payment.
Also associated with anonymity, bitcoin allows you to transact faster. All of these things together make bitcoin the perfect choice for investing.
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 day by day, bitcoin will still be the most trusted. The price tells the story. Bitcoin is still the most valuable cryptocurrency. But if that doesn’t convince you, check the market cap. This 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 bitcoin will appear on every listing. It is easy for every investor to know that their chosen digital currency or store of value is the most reliable of all the others and has the best track record in terms of value and market capitalization.
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.
The facts are there. Bitcoin makes a great investment. But ultimately, it’s up to you whether bitcoin would be a good store for your value or an addition to your investment portfolio. It’s your money, after all. Whatever you decide, make sure you’ve weighed the pros and cons before coming to that conclusion. More importantly, make sure you have thought about all of 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.