Bitcoin is one of the most active digital currencies also known as cryptocurrency, which has taken the globe by storm and it has revolutionized the advantages of decentralization. Once an investor or an enthusiast understands and learns the technology behind how digital currency works, it can lead them to believe that the future of finance has started.
There are more than 2000 active cryptocurrencies to date and Bitcoin is considered the most popular. It was supposedly founded by an individual with a pseudo name Satoshi Nakamoto almost a decade ago and there are three people who were supposedly Satoshi Nakamoto — these are Dorian Nakamoto, Craig Wright, and Nick Szabo. However, nobody knows who that person actually is.
Moreover, let’s discuss five reasons why investing in Bitcoin would be one of the excellent decisions you’ll make this year.
1. Bitcoin has the highest adoption rate
Compared to other cryptocurrencies around, Bitcoin has the highest adoption rate — built with credibility. Satoshi Nakamoto has put his vision forward in the Bitcoin whitepaper where his aim was to form new money. Nowadays, eCommerce giants such as Amazon and Apple are now accepting digital currency gradually and slowly. Bitcoin price has reached its highest mark the previous year and its adoption rate is multiplying exponentially.
2. Bitcoin’s decentralized payment system
The use of Bitcoin lets you own your transactions — there is no need for a middle party or banks to get involved that monitors or keeps track of your payment whereabouts. Bitcoin allows you to have your respective wallets where you can instantly deposit or withdraw money whenever or wherever. This lets you trade and make your own decisions based on the flow of the market and this maintains transparency too.
3. There is always a generation shift in wealth in Bitcoin.
You can expect more investment dollars to make their way into uncorrelated assets like Bitcoin — did you know that Bitcoin makes up about 66.8% of the total value of all cryptocurrencies as of December the previous year, this is according to a report from finder. This means more are most likely to buy, hold, and use Bitcoin. Especially when the new generation is still evaluating where to put and invest their money, Bitcoin is increasingly a part of their consideration.
4. The Bitcoin network fundamentals are strong
Bitcoin can be sent securely across the globe at low costs and any amount you wish — as easy as sending a text message and without the need for third-parties using its global transaction networks. There are over 100,000 merchants across the world now accepting Bitcoin and the number of active wallets on its contact continues to grow. This is a key sign of a growing and vibrant financial ecosystem, while the methods for receiving, sending, and storing Bitcoins continuously improve both organizational and consumer levels.
5. Availability of profitable alternatives
Bitcoin has dominated the cryptocurrency market for almost a decade and this is probably the reason why it is recognized as a digital asset. A Bitcoin investor can expand his horizon and reap huge amounts of returns by expanding to other emerging alternative coins like Litecoin or Ethereum which are also showing great potentials. However, it is wise to keep in mind that any investment made is a risky venture to take as a rule of thumb, only invest the amount of money you are willing to lose.
Since early the previous year, buying significant Bitcoin Dips proved to be a rewarding way of investing. Dollar-Cost Average (DCA) is considered a popular trading strategy that involves regularly purchasing the same dollar amount of the investment.