Several analysts over the past decade have termed investing in BTC and other digital currencies the “opportunity of a generation” but why? The truth is, there are many reasons to own Bitcoin and other digital currencies. So if you are wondering why should I buy Bitcoin, then keep reading this article.
With this technology grabbing high chances of reforming and / or disrupting present structures, you will surely not like to be one of the people who did not hop on board the train.
Before your FOMO (fear of missing out) moment kicks in, it is ideal to look at the various reasons to own Bitcoin and other digital currencies.
Primary Reasons To Own Bitcoin
Bitcoin and other digital currencies have been all over the media lately. As Tim Draper thinks,
“Bitcoins are opening up a space that will create a revolution like the personal computers did in the 1970s or the internet did in the 1990s.”
This article brings to you 5 reasons to own Bitcoin now.
Bitcoin Is An Autonomous, Deflationary Currency, Not Controlled By Any Central Authority
Crucially, what this implies is that, because there are only 21,000,000 BTCs in existence, its price should theoretically constantly rise as time goes by. The protocol operates as a sort of a protection against inflation, the devaluing of a currency. This also assures BTC to be in huge scarce supply and it has been dubbed “digital gold” for various times.
If we are to illustrate money as something to which people carry value, that can also be spent or used to compensate for goods or services or time, then BTC will always gain or retain value as long as people place value in it.
The significance of a currency not managed by a government is such that it enables Bitcoin to be the money of the people, due to the decentralized nature of BTC. Unlike gold, BTC cannot be confiscated by any government, much like has been acted in the past. So this is the most important reason to purchase Bitcoin or any decentralized digital currency such as Ethereum or Litecoin.
No Central Bank Can Control BTC
Much like the first reason to own Bitcoin, Central Banks are bypassed by the decentralized feature of the Bitcoin protocol. Central Banks have long held discussions as the financial system standard, providing customers a place to keep their funds, while providing funds on loan.
One of the largest issues with the Central Bank is that they function on a fractional reserve system, implying that only a fraction of the real funds is pegged by any actual cash. The banks loan partially-backed money out, on the deal that the borrower pays the sum back along with interest. More money is formulated every time the banks loan money out and goes for interest rate adjustments to stick to desired economic inflation rates.
With BTC not being controlled by the Banks, you will no longer have to stick and follow the open hours of the bank. The digital currency market is open 24/7, but the financial banks all close and reopen at specific times. Being independent of both banks and government implies that your Bitcoin is non-custodial, and is owned by you and handled by you.
This is a powerful, revolutionary alteration, as it implies people can actually own and control their own money, and they have access to their money 24/7, without having to wait for their bank to open. The present financial framework uses a Clearing House to confirm and process financial transactions, thus needing most transactions between a user and a bank to take nearly 1-3 days. With digital currencies, funds are received and sent without a middle man.
BTC Is The Best Performing Asset Of This Decade
Bitcoin is a type of sound money and is proving to be a better mode of storing value in comparison to traditional fiat currencies. Historically, the US dollar has inflated closely by 98 percent in the last 100 years.
Other traditional fiat currencies have witnessed huge inflation across history, like Venezuela’s Bolivar – which has witnessed well more than 5000 percent inflation in recent years, and also the Weimar Republic Germany’s currency in 1922-23 – which witnessed their currency inflate at a peak of over 29,000 percent, with values of items costing twice as much every two days.
With the danger of pending global financial issues, BTC could be a possible safe space to store value in times of financial distress and upheaval.
BTC Will Revolutionize Daily Businesses
There has never been one single currency that is used by the whole world, without the requirement for institutional intervention or aid. The Blockchain, a structure of technology that BTC and other digital currencies are constructed upon, is starting to revolutionize not only the finance sector but other industries also.
Some milk entities have started to use the blockchain for sourcing their milk down to the very detail of which cows gave which batch, and where the product was shipped to the procedures after that.
The Crypto Space Is Still Young
This is the last one on our list of reasons to own Bitcoin. The ideal time to invest in the fastest time possible. While BTC and other digital currencies have been around for over 10 years, it is still an early span to be getting into the space. Prices have increased by 500% in 2020 alone and are expected to climb in 2022 so there is more risk but long term thinkers know the short term fluctuations and are willing to purchase at these higher values.
We are not advising you to purchase or are giving you investment advice, but we want you to be particularly cautious during these peaks.
These are just 5 of many reasons to own Bitcoin and other digital currencies. Always remember many people that come to the digital currency space feel as if they may have come too late. There is no better time than the time now to invest your money after doing your fair share of your own research. In the above article, among the 10 reasons to buy Bitcoin, we have noted the 5 most important reasons to consider.