12th March, 2022
Bitcoin boasts numerous real-world applications, but it primarily serves as a means of payment and a store of value.
It is the most prominent cryptocurrency, with the highest trading volumes on financial markets.
In 2020, Bitcoin independently outperformed all the other asset classes, including gold and diamonds, to become the most lucrative asset. You can click on https://cryptostrader.org/ to learn more about bitcoin trading.
Also, it is a volatile asset with sharp and enormous price swings like other cryptocurrencies.
It also faces criticism over regulatory pressures that could easily make investors hesitant to invest. However, this prominent cryptocurrency has several unique properties that make it an accurate and profitable investment.
Here’s why you should invest in Bitcoin.
Enhanced Transactional Security
Although Bitcoin is a virtual asset that you can neither touch nor feel, it is one of today’s most secure investments.
Traditional investments usually require intermediaries to oversee transactions. That is a good move, but it exposes investors to numerous security risks.
For example, third parties often steal people’s data and even manipulate transactions for personal gain without detection.
Bitcoin has stringent measures to protect users’ data and their funds. Instead of third parties, Bitcoin runs on a distributed blockchain network, connecting only the two parties to a transaction.
Blockchain technology verifies and validates users’ public addresses and transactions history on an irreversible digital ledger. That ensures greater transparency in all Bitcoin transactions.
The irreversibility of the blockchain ledger eliminates the chances of users or third parties manipulating transactions. That protects you from fraud and other common risks of most traditional investments.
Increasing Mass Adoption
Initially, many early crypto investors did not know what to do with Bitcoin or even use it. They mainly invested in Bitcoin due to its future potential.
Today, Bitcoin has found multiple real-world uses, driving its mass adoption worldwide. The increasing Bitcoin adoption suggests growing investor confidence in its potential value.
It strengthens Bitcoin’s reputation as a store of value and payment.
Bitcoin adoption has experienced a meteoric rise in recent years, as investors, businesses, and merchants worldwide rush to acquire a piece of it.
That indicates Bitcoin is no longer just a speculative asset but a real investment with significant potential returns.
Better Resilience to Inflation
Bitcoin’s prices move up and down constantly, which could easily scare away some investors. However, Bitcoin prices have historically bounced back quickly and gained immense value over a short period.
Besides, the currency is a decentralized asset, not subjected to government and institutional influences.
Its supply limit caps it at 21 million tokens only, with about 19 million currently in circulation.
Also, it’s subject to the halving process that reduces the number of rewards issued to miners by half every four years.
Those statistics show Bitcoin’s supply will undoubtedly decline over time. Meanwhile, the market demand continues to grow daily.
Its growing demand and diminishing supply are the main factors that enable it to attract and maintain a more substantial purchasing power over time.
On the other hand, its decentralization allows it to withstand external influences from governments and banks. Hence, better resilience to inflationary risks.
Many institutional investors are increasingly shifting larger chunks of their investments to Bitcoin to diversify and safeguard their wealth from inflation.
Overall, Bitcoin has some risks, but it also possesses several unique qualities that make it one of today’s most lucrative investments.
Nevertheless, you should study the crypto market and understand the various investment strategies to determine the most suitable approach for you to invest in Bitcoin.