Bitcoin is changing the world, and any of its committed followers without hesitation will drum you a long list of reasons why the future of money is cryptocurrencies. And he will be right. Bitcoin is a global currency that meets modern confidentiality requirements, exalts those who are not covered by banking services, and takes economic power from banks and governments, returning it back to the people.
In addition, here are a few more specific reasons why Bitcoin is the money of the future (and the future of money), and why now is the time to buy it.
10 reasons to buy bitcoins in 2020
1. This is a new asset class .
Asset classes or types of investments traditionally include stocks, bonds, and more recently, objects such as real estate. And now, cryptocurrency has replenished this list, because of Bitcoin, which is gaining momentum and recognition as a completely new class of assets. Thanks to companies such as Bakkt, which drive institutional investment in Bitcoin into the mainstream, this type of asset is likely to appear in the near future in pension funds and in the recommendations of investment advisors.
2. It operates independently of other markets .
When prices fall in the stock markets, Bitcoin does not have much effect. Perhaps this statement may sound like an unfounded generalization, but it is not at all inaccurate. Of course, such statements should not surprise anyone. In the end, the very creation of Bitcoin was a response to the stock market crash, a bursting bubble in the real estate market and a general distrust of traditional monetary systems. But for today’s investors, this separation is correlated with better risk management and a more diverse portfolio.
3. It is not subject to the same inflation and devaluation as the FIAT .
What can you afford to buy for your salary next year? Or even next week? If you live in Venezuela, Sudan, Argentina or Zimbabwe, the answer is “not much,” thanks to hyperinflation. But the devaluation of a fiat currency (that is, a government-supported currency such as the yen or the euro) is a global problem. In Eastern Europe, inflation exceeds 3%, and even in the United States, inflation exceeds the 2% target set by the US Federal Reserve. The ultimate nature of Bitcoin – only a certain amount of its coins can ever be issued – means that this currency manages to avoid this problem. Add to this the fact that the bitcoin reward for block mining is halved every four years, and the inflation rate actually decreases over time. When in May 2020 the next cut in block reward (halving) occurs, the inflation rate will drop to 1.8%, which means that it will become stronger than the US dollar now.
4. This is a great value repository .
Is Bitcoin Digital Gold? We will say that he is even better. This cryptocurrency is often compared to gold. And there are good reasons for this: it is a universal currency that is not controlled by any government or organization; it is difficult to mine; and it exists in limited numbers, which increases its value. And since, as we examined above, it is not subject to the same inflation as the fiat currency, it also does not depreciate, which makes it an excellent means of accumulating value. What makes it better? Unlike gold, Bitcoin is digital. While gold in large quantities becomes cumbersome, Bitcoin is easy to store and transport in both small and large quantities. And 0.25 bitcoins and 25 can be stored in the same cryptocurrency wallet.
5. It cannot be confiscated .
In many countries, your fiat currency may be frozen by the bank or your government may be seized with almost no warning. With cryptocurrency, this will not work. It is not controlled by either the central bank or the government, which means that if you have the keys to your Bitcoin wallet, then only you will have access to it and only you have control over your money. What makes state intervention impossible.
6. The infrastructure serving Bitcoin is in a period of exceptionally rapid growth .
Bitcoin is no longer just a dream of a group of economic anarchists. As the benefits of blockchain technology continue to show themselves, companies such as Visa, Fidelity and Square are finding ways to integrate Bitcoin solutions into their products, and even large banks themselves, including Bank of America and Wells Fargo, are experimenting with the blockchain, thereby creating favorable conditions for the hyper growth of Bitcoin infrastructure.
7. He is not in vain called a badger-honey badger.
Bitcoin is not controlled by any one structure, which makes it impossible to contain it. It was created and controlled by a peer-to-peer network, without any government or organization at the helm. Since it is universal in nature, government prohibitions, regulation and restrictions can have only a limited impact on it, and ultimately, Bitcoin will act like a natural element, which it essentially is. This is what makes Bitcoin a new financial system, one that is created by and for people, and which is the key to economic freedom.
8. He will make you doubt that you already know.
And this is good. When was the last time you thought about where your money comes from or who controls its value? If you are like most of us, then most likely, obviously not the other day. The existence of money in its current form is what we take for granted, regardless of whether we have a lot or a little. But cryptocurrency turns our ideas upside down, showing us that governments should not control our funds, that money should not be held in banks, and that the currency can be immune to hyperinflation and corruption.
9. He will make you want to know more.
Fiat currency has long been outdated. And as soon as our ideas about how money works turn upside down, we cannot help but be driven by a thirst for knowledge. Bitcoin will force you to ask the question, why did we agree to be content with fiat currency so far. It will awaken in you a desire to understand how the blockchain works, and why the need is ripe for a financial revolution. In fact, it is important to know these things, after all, Bitcoin is the money of the future.
10. Its price is likely to increase.
The price fluctuations that Bitcoin has experienced in the last few years make many say that Bitcoin is too volatile to be relied on. But while its price volatility certainly led to sharp ups and downs, especially in 2017-2018, the overall Bitcoin price curve has steadily followed an upward trajectory. In other words, if you keep it long enough, the probability of an increase in its value is higher than that of any other asset class over the past 11 years.
Bitcoin was created so that people can regain power over their own economy. Eleven years later, Bitcoin not only provided people around the world with the opportunity to do just that, but also proved that it was a successful investment worthy of its title as the future of money.