Bitcoin is the most popular cryptocurrency in the world. Despite its many interesting features, the digital asset is greatly known for its remarkable volatility in terms of price movement. For instance, Bitcoin surged to almost $20,000 in late 2017, leaving many investors in basking in the euphoria of making massive profits within a short period. In a similar pattern, the coin also fell to as low as $3,200 just a year later, leaving traders in losses.
This price fluctuation seems to be one of the greatest strengths and, at the same time, the Achilles hill of the cryptocurrency. How? Many jump into the Bitcoin bandwagon to make quick gains from the price instability while others are scared of joining the train because they fear they could lose their money if the price goes down.
Buying Bitcoin in 2020
Of course, the bitcoin market is not all fun, as many would describe. It is like a roller coaster. In fact, Coinfomania once reported that a swiss woman wanted to divorce her husband because of a failed $200k Bitcoin Investment.
Despite all of this, there are still more than a hundred reasons why you should consider buying Bitcoin in 2020. Here are just a few of them to get you started.
1. Bitcoin scarcity
Excess money printing can lead to horrendous inflation, just like in the case of Germany and Zimbabwe. In fact, the money printing in Zimbabwe was so bad that a loaf of bread was sold at 35 million Zimbabwean dollars in the country. Yeah, you heard that right! Thirty-five million Zimbabwean dollars for a loaf of bread.
Unlike fiat currencies that are printed almost every day, Bitcoin has a limit to its supply. The Bitcoin protocol is programmed in such a way that only 21 million bitcoins will ever exist or be mined, and that is a fact that cannot be changed. Interestingly, the last bitcoin will not be mined until the year 2140.
This is one of the biggest reasons why the price of Bitcoin has risen greatly over the past years. Many analysts believe that Bitcoin scarcity will continue to lead to an increase in the value of the cryptocurrency, according to the law of economics. Limited supply with increasing demand will lead to higher prices.
2. Low cost of transferring Bitcoin
For one thing, cross border payments via traditional systems attract high fees. However, it is almost free to transfer large amounts of money using Bitcoin and other cryptocurrencies. For instance, Coinfomania has reported several cases where millions of dollars worth of Bitcoin were transferred for less than a dollar fee. Just like this week, a bitcoin whale moved over $458 million worth of BTC for a fee of $0.58.
Aside from the cheap fees, Bitcoin payments are also faster than traditional payments for cross border remittance.
3. Bitcoin is uncensored
Perhaps, one of the factors that will drive the mass adoption of Bitcoin is the need for more freedom. Due to the decentralized nature of the Bitcoin technology, it is impossible to stop its operation or to impound it.
In most countries, the government makes use of capital controls, which are methods of censoring people through finances. However, since no central government controls bitcoin, it is not possible to stop it, and this makes it a perfect choice for anyone seeking freedom. The only way governments can control the crypto industry is by formulating regulations to govern participants like traders, cryptocurrency exchanges, and other crypto-related businesses. Even at that, the government cannot control bitcoin directly.
4. Clearer Regulations
Just a decade ago, there were little to no regulations regarding virtual currencies. As a result, many countries placed bans on Bitcoin and other cryptocurrencies, perhaps, due to ignorance.
Recently, though, regulations are continuously being formulated with regards to the classification of digital assets. South Korea recently gave cryptocurrencies a legal status. The increased regulatory clarity has also compelled financial institutions and insurance companies to make their services available to cryptocurrency firms.
5. Bitcoin is transparent
This is one of the most outstanding qualities of Bitcoin. It provides a valid monetary policy that can be verified at all times. This makes it possible to know when new bitcoins are created and how many bitcoins are in circulation, which is almost impossible for fiat currencies.
6. Bitcoin gives profits
As mentioned at the forepart of this article, Bitcoin price fluctuation is a reason why investors are buying Bitcoins. Just 11 years ago, the cryptocurrency was worth almost zero, but today, it is trading above $9,000. Since the Bitcoin network came into existence in January 2009, the cryptocurrency has generated more than 8.9 million percent return on investment. For this, it was named the best performing asset of the last decade.
So yes, if you want to make some extra profit, then you should consider buying and trading Bitcoin. However, this is not financial advice. Ensure you do your own research before committing to any investment.
7. Bitcoin is open-source innovation
The bitcoin framework is open source, which means it is continuously being developed by developers around the world to make it even better. For instance, the introduction of Segwit for scaling bitcoin transactions.
8. Bitcoin is the digital gold
Gold is a precious metal revered by many investors as a great store of value. However, since we are living in a digital world, bitcoin has proven over-time that it is similar, even better than gold.
For instance, a large number of bitcoins can easily be transferred from one part of the world to another within a short period at a relatively low cost. Gold, on the other hand, is not only heavy (a gold bar weighs more than 20 pounds) but also takes time and money to transfer it amid various restrictions.
Many investors, including Mike Novogratz, the founder of Galaxy Digital Holdings, are very bullish about bitcoin being a digital gold.
9. Mainstream adoption is yet to happen
Bitcoin is only 11 years old and has achieved a lot within such a short period. Interestingly, a lot of reputable investors are getting interested in the cryptocurrency. Major companies and stock exchanges, including tech-heavy NASDAQ, researching the asset. NASDAQ even revealed that they are developing tradable products that are related to Bitcoin.
So there you have it. The nine reasons why you should buy bitcoin in 2020. It is never too late. You can follow this link to buy Bitcoin or other cryptocurrencies using SEPA and Bank Cards (USD/EUR).
Disclaimer: This article may contain affiliate links. We may earn a commission when you purchase with via links, but at no additional cost to you.
Affiliate: Get a Ledger Nano X for $119 So That Hackers Won't Steal Your Crypto!