Top Reasons to Buy Bitcoin This Year
The Bitcoin market has undergone significant and rapid growth over the years. Satoshi Nakamoto started this market by introducing this virtual currency in 2008 before launching it in 2009. The initial concept was for Bitcoin to operate as a global, electronic, or digital currency.
Bitcoin facilitates safe and efficient transactions at a low price using the blockchain. Other fields have also used Bitcoin, with firms like KFC, Microsoft, Wikipedia, Overstock, and Namecheap accepting Bitcoin payments.
But Bitcoin’s incredible volatility hinders some people from purchasing it. At the same time, some individuals and institutions buy Bitcoin on platforms like Immediate Bitcoin and hold it in their crypto wallets. For such entities, Bitcoin is an investment vehicle or asset with the potential to increase value. Therefore, they keep it in their crypto wallet, waiting for the price to rise, and sell their holdings for profits.
Overall, people have varied reasons for purchasing Bitcoin. If you’re yet to start buying this virtual currency, here are reasons to consider the idea.
Nobody Can Confiscate Your Bitcoin
The government or a bank can confiscate your assets or freeze your bank account. And this can happen even without warning. Bitcoin is different because no government, central bank, or other authority can confiscate it. Only a person with your crypto wallet’s private key can transfer or spend your Bitcoins. For instance, German authorities couldn’t access Bitcoin worth more than $60 million in 2021 despite the claim that they had seized the funds from a hacker.
New Asset Class
An asset class is an investment area. Traditionally, most people and organizations have invested in bonds, stocks, and entities like real estate. Bitcoin has now joined this list, and it’s gaining recognition and momentum as a new asset class.
Companies have also introduced corporate or institutional investments in Bitcoin, making the cryptocurrency go mainstream. Eventually, Bitcoin could appear in pension funds and investment advisors recommendations. Nevertheless, Bitcoin has attracted many corporate investors that want to preserve their treasures or funds against inflation.
Value Storage
Perhaps, you’ve heard some people refer to Bitcoin as digital gold. Ideally, Bitcoin is a universal currency without control from any entity or government, and its Bitcoin mining is not easy and has a limited supply. Such attributes increase the value of this virtual currency.
By not being subject to any authority, Bitcoin doesn’t suffer the impact of inflation in any country. Thus, it can serve as an excellent value storage. But unlike gold, Bitcoin is digital, making it easy to transport and keep in large and small amounts.
Independent Market
A drop in the stock market doesn’t affect Bitcoin. While this might sound like a blanket statement, it is accurate. After all, Satoshi created Bitcoin following a stock market crash and a real estate bubble bursting. Also, the creator cited distrust in conventional monetary systems.
However, modern investors see this separation as a correlation to a diverse portfolio and improved risk management. Investors have reported double standards and severe dysfunction in conventional markets. Therefore, Bitcoin appeals to more retail investors.
Hyper-growth Infrastructure
Bitcoin is more than a dream of economic anarchists. More people now believe in blockchain technology, with companies like Square, Fidelity, and Visa looking to include Bitcoin solutions in their products. Some regional corporations and central banks want to experiment with Bitcoin’s underlying technology. Thus, Bitcoin’s infrastructure is getting a boost from several sectors.
Satoshi created Bitcoin to help users reclaim the power to control their finances and play a role in their economies. However, this virtual currency has also become an investment and a tradable asset. If you’ve not bought this digital asset yet, the above reasons should convince you to reconsider your investment strategy.