Most people have heard of bitcoin by now, and it is proving itself a good investment. Although it is risky and volatile, it still appears to go up over time.
Bitcoin uses blockchain technology, which is decentralized. Transactions are stored on a public ledger, and you store your bitcoin in your own digital wallet. Take a look at the top seven reasons to buy Bitcoin.
1. There Is a Finite Amount of Bitcoin
When bitcoin was created, it was determined that only 21 million bitcoin would ever exist. This is a fact, and it is not possible to change it. This means that bitcoin is scarce because once it is all in circulation, you can only obtain it by trading with someone else who has it.
This is one of the primary reasons why bitcoin has risen in value. Whenever you have something where the demand is greater than the supply, it has value.
2. Bitcoin Is Decentralized
Many people are drawn to bitcoin because it is and always will be decentralized. In addition, it is transparent because every transaction is recorded on a public ledger. When you use fiat currency, there is very little transparency. When you deposit money into a bank, you have no idea where it is, and you have no control over its value.
Bitcoin is never manipulated or created by a government, and you can see where it is at any time. This is a huge benefit when you buy it, as you know what you have.
3. Bitcoin Regulation Is Developing in a Positive Way
When bitcoin first came out in 2009, there were no regulations at all. As it became popular, some countries started banning it. They were unable to control it, so they banned it. Today, there are very few countries that ban bitcoin, and some are even making it an official currency in their countries.
Bitcoin has become more mainstream, and government agencies and investment firms now consider it part of a new asset class.
4. You Have the Potential to Make Profits
Many people have heard the stories of those who bought bitcoin when it was worth a dollar a coin, and today it is about 45 thousand times as valuable. Although it has been a volatile road, bitcoin has consistently gained value over the time of its existence. People often take a portion of what they invest and put it in bitcoin because it does have the potential to earn higher profits than other asset classes.
5. It Costs Less to Transfer Bitcoin
When you make international payments, it can cost as much as 10% and take a few days to process. While bitcoin does have fees, they are much lower than the cost of an international transfer. Bitcoin fees are based on its value, so it does change depending on what it is worth and how busy the blockchain is.
However, when you compare the cost of transferring bitcoin to that of a bank, it can be significantly less. In addition, the recipient will have the bitcoin the same day.
6. Bitcoin Is a New Asset Class
If you are looking to diversify your portfolio, bitcoin is a new asset class. Major investment banking firms have agreed that it is an investable asset, and it has a lot in common with penny stocks that move up or down based on the news around it.
Back in February, Canada’s main securities regulator cleared the launch of the first bitcoin exchange traded fund, which has led to a great deal of interest. If you are looking to diversify your portfolio, you can buy Bitcoin.
7. It Gives You Financial Freedom
When different countries suffer from a financial crisis, it is usually the government regulations and the actions of big banks that are to blame. When governments need more money, they often print it out and make decisions to raise the debt ceiling in the country. The citizens don’t have much say in any of it, and your money is subjected to all of these things.
However, bitcoin gives you financial freedom. It can’t be manipulated, and nobody can make more of it. Although it may fluctuate in value, it is based on the supply and demand. When it has a dip, that is because people have decided to sell.
Bitcoin has survived many tests of its staying power, and it is proving itself to be worthy of consideration. Governments are starting to accept it, and regulation is going in a positive direction. There is a lot of potential for profits, and it is a great way to diversify your portfolio.