In this article, we will talk about 5 Reasons to Buy Bitcoin. With the development of technology, almost every area of life is developing. Instant electronic messages replace handwritten letters. Printed books compete with e-books, and even ordinary cash payments can be made via e- from the comfort of your home. Banking. Everything is going digital.
In 2009, the world witnessed the birth of a new technological phenomenon, Bitcoin. The idea of a cryptographically secure peer-to-peer currency was very appealing to the general public. And it has been on the minds of many investors ever since. What makes cryptocurrency a unique investment asset? And why do so many people want to buy Bitcoin these days? See.
Any valuable investment asset must have 5 key characteristics. Scarcity, security, divisibility, mobility and originality. Bitcoin ticks all the boxes!
5 Reasons to Buy Bitcoin
Many experts see the limitation of the number of Bitcoins as a positive growth factor that will determine the value of the cryptocurrency in the coming years. Bitcoin was designed to never exceed the supply of 21 million coins. Now it has already crossed the 17 million mark. This means that Bitcoin is out of supply. On a global scale, it may seem like a small amount. But this is definitely something that contributes to Bitcoin being very valuable in the eyes of investors.
A limited supply of Bitcoin becomes a truly reliable tool against digital currency depreciation. But what is seen as a blessing can also turn into a blast. Such is the case with Bitcoin.
Bitcoin is immaterial. And the only way to prove you own the coins is to have a private key for the wallet you keep them in. In principle, cryptocurrency wallets do not allow you to restore the private key. If you lose – you will also lose all your Bitcoins. These coins will only be as good as gone, they will actually be obsolete. According to some reports, 4 million coins are already inactive – they are lost forever. And they can never be undone. This means that Bitcoin is even scarcer than gold.
Scarcity makes Bitcoin deflationary and therefore contributes to the rise in its price. At least that’s what many investors rely on.
Bitcoin is decentralized; It does not belong to any government or central authority. The only entity that has direct control over the user’s Bitcoins is the user himself (until he owns the private key). You can spend or transfer Bitcoin only if you have the appropriate keys with which transactions are signed.
At its core, Bitcoin operates under a unique cryptographically protected protocol that is nearly impossible to weaken. Transaction data on every Bitcoin in circulation is recorded on the blockchain. And it is distributed to all nodes in the network. These nodes also act as validators of Bitcoin transactions. Once the data record is tampered with, the transaction will not be verified by the nodes. This verification algorithm makes the Bitcoin network transparent and self-regulating.
However, as the value of Bitcoin increases, so does the number of cyber attacks against Bitcoin wallets and exchanges. To avoid losing your Bitcoin funds, make sure you don’t store them in online wallets that are particularly vulnerable to attacks. Hardware wallet is probably the best choice here.
Remember, when it comes to Bitcoin, you are the bank responsible for the funds!
Another reason that makes Bitcoin a friendly investment is divisibility. Have you ever had a chance to invest in some of the gold bullion? Probably not. It just doesn’t make any economic sense. From an objective point of view, gold bullion, real estate, stocks or futures cannot simply be broken down into smaller units, whereas Bitcoin can.
Currently, the smallest unit of Bitcoin is Satoshi. That’s one hundred millionth of Bitcoin (0.00000001 BTC) or $0.00005988 at the current BTC/USD rate. Seems appropriate enough, doesn’t it?
In fact, you can store billions of dollars in Bitcoin without the need for special safes or safes. Cryptocurrency is an easily portable investment unit. All you need is a wallet that can come in the form of a software application, memory stick, or just a piece of paper.
You can also send them all in a matter of minutes, just like an email, to anyone halfway around the world. Previously, this was impossible without the participation of intermediaries.
Also, people traveling abroad know very well that there are often restrictions on the import of foreign currency. When you exceed the limit, you will need to disclose the source of this money and prove that you have it. Stop exporting or importing gold. Crossing precious metals is an expensive and risky undertaking.
Bitcoin leaves all these disadvantages out of the list as it has not been regulated by international law until now.
The reality of Bitcoin is hardly debatable. With its birth, the community was introduced to an innovative concept of money that heralded a new era in the crypto economy without third-party intervention or support. The underlying principle of centralization gives users financial freedom and puts money under the control of people rather than financial institutions.
Where to buy bitcoin
If you want to buy some Bitcoin, cryptocurrency exchanges are the place to go. These are well-established businesses that provide users with an online marketplace where Bitcoin can be traded against fiat currencies.
In this article, we told you 5 Reasons to Buy Bitcoin. Note: The information, comments and evaluations contained here are NOT in the Scope of Investment Consultancy. Keep following the SinceCoin.