Top reasons why you should buy Bitcoin
Bitcoin has transformed the investment market, and Bitcoin investors can give you some reasons why you need to purchase cryptocurrency. You should note that Bitcoin is considered to be a global currency that can help you to handle your privacy concerns, shift the economic power from governments and large banks back to people, and elevate the unbanked. Besides this, there are other good reasons why you should Buy Bitcoin. This article provides the top reasons why you should but Bitcoin.
It’s a new asset category
Areas of investment or asset classes have traditionally included bonds, stocks, and recently, entities like real estate. Today, cryptocurrency has now been added to this list, with Bitcoin gaining recognition and momentum as a new asset class.
Some companies usually bring institutional investing in Bitcoins to the mainstream, so there is a chance that it may be in pension funds after recommendations from investment advisors over time. Bitcoin is also quite attractive to large companies that want to preserve their funds against inflation. This is why some companies convert tons of cash from their cash holdings into Bitcoin.
It can perform independently of other markets
The truth is that Bitcoins rarely get scathed. You should remember that Bitcoin was created in response to the crash of the stock market, distrust in the traditional money system, and the collapse of real estate.
Today’s investors this separation correlates well to risk management as well as a more diverse portfolio. With the revelations of serious double standards and dysfunction in traditional markets, the appeal of Bitcoin to retail investors is improved.
It’s not affected by the same devaluation and inflation
It can be hard to predict what your salary can purchase in the next year, especially if you live in a country with hyperinflation. However, with the devaluation of fiat currency, it has become a global concern. Take note that a fiat currency refers to a government backed currency like the Yen and Euro.
The nature of Bitcoin means that a specific number of coins may be released, so the currency can manage to avoid this problem. Aside from this, the Bitcoin reward for mining a single block can be halved every 4 years. And, the inflation rate decreases over time.
Bitcoin cannot be confiscated
Most countries can freeze your flat currency by the bank or even your assets may be seized by your government without any warning. On the other hand, cryptocurrency is different because no central bank or government controls it. This means that if you have your Bitcoin wallet keys, then you are the only person who can access and control your money without any government intervention.
That said, Bitcoin usually appreciates in value. Therefore, the price fluctuation that Bitcoin experiences tends to have an upward trajectory. You just need to hold on to your Bitcoins for long enough to see the appreciation in value which is often higher than other asset classes. And, Bitcoin can be less volatile with the price increases because the amount of money needed to shift its price based on percentage increases accordingly.