Should I Buy Bitcoin ?
I know what you are going through.
I discovered Bitcoin quite some time ago. For many years, I wondered if I should purchase Bitcoin. Would it be a good investment?
It wasn’t enough to hear about it and run out and buy it. I just kept deliberating, searching, delaying it. Maybe you are going through the same thing.
You have known about Bitcoin for quite some time, and are aware of the profits traders made in the beginning – but you still aren’t sure and can’t make up your mind.
From its inception in 2009, Bitcoin has continued to gain in value. Pricing has gone from $0.01 to $20,000 per Bitcoin. It is a highly volatile market, and throughout this period, average earnings average 28% per month.
The question is if Bitcoin is still a good investment in 2020? Is it a safe investment? Is it a good idea to purchase Bitcoin now, or wait for a certain amount of time? The other question is, how much Bitcoin should you purchase?
Bitcoin – What Is It?
If you are wondering what Bitcoin is, it’s digital verification.
Since the internet first sprang to life, we have verification that something digital can be owned – Bitcoin.
Before blockchain technology and bitcoin, there was no way to prove you had digital money without the proof from an official third party like a credit card issuer, or a credit union.
Bitcoin is different because you don’t need a third-party verifier, you know it is yours because it is decentralized.
10 Reasons to Buy Bitcoin
1. The rules surrounding bitcoin are permanent – With bitcoin, all new coins are mined. They are added to the cryptocurrency’s supply that circulates regularly. The limit for Bitcoin is 21 million coins. This limit is their permanent public rule, and it cannot be changed or altered.
Bitcoin is different from paper currency because money is printed daily by governments around the world. It is called quantitative easing in the United States. No one can make more Bitcoin once the limit is reached.
Should you buy bitcoin for this reason? It’s a better option than purchasing a currency regulated, controlled, and manipulated by world governments, banks, and corporations.
Bitcoin can be verified through a public ledger by you – and that makes it a pretty good investment.
2. The future is scarce for bitcoin – Scarcity is one of the main reasons bitcoin has risen so quickly and dramatically in value. Considering that there will only be 21 million coins created, this makes it unique and valuable. The laws of supply and demand will work for bitcoin for years to come. Scarcity sell
If everyone on earth owned bitcoin evenly, each person would receive 0.0023 BTC or $22. If you own more, you will have more bitcoin than most people.
While gold is scarce, and we have no idea with the final value or supply will be in the future. There could be another gold rush somewhere on earth, and while supply would go up, the value of gold would go down.
Additionally, gold has a large market cap at $6 trillion. What if bitcoin became a form of digital gold or a new class of asset. It would skyrocket, and this would place the price of Bitcoin somewhere around $340,000 per BTC.
This would mean that we should all run out and purchase bitcoin now. It might sound too perfect, but think about it – Bitcoin was once worth only $1.
Could bitcoin increase in value to $340,000? There is a possibility, and another reason to consider purchasing bitcoin.
3. There is transparency with bitcoin – There is much more transparency with bitcoin than there will ever be with the Federal Reserve.
Years ago, at a Canadian financial conference, the chairman of the United States Federal Reserve denounced bitcoin, stating that it poorly stored value, it was not accepted and that it was a slow investment.
In spite of the criticisms and unlike the U.S. dollar, bitcoin is transparent and decentralized. Those are two big reasons to buy bitcoin.
The transparency of bitcoin is in complete opposition to the Federal Reserve. There is no transparency with previous transactions with existing fiat currency and its system, how our taxpaying dollars are spent, and we have no idea about how frequently money is printed.
In our inflated economy, money is printed every day by the Federal Reserve. We have no comprehension about matters of monetary policy that could affect our futures, and the Fed cannot be audited.
If there are no checks and balances on the Federal Reserve, how do we know if money is being printed? Where can we find information on how they use money, and how it is being allocated?
4. It cannot be censored – Free speech is a First Amendment Right in the United States. In countries throughout the world, this is not always the case. China offers no protections for free speech, and capital controls are the methods for which these countries work to suppress the people.
Some of the countries that censor their citizens through finances include China, Taiwan, Brazil, and Russia.
Foreign currencies or precious metals like gold are limited in China and not allowed for purchase by its citizens or businesses. Money transfers across borders are closely monitored, ensuring that no one can easily move money outside of China.
Decentralization guarantees that Bitcoin cannot be censored.
In 2017, China banned all cryptocurrency mining operations and exchanges, yet the network still survives.
Bitcoin is still worth buying, especially if you live in a repressive country that enforces capital control on its citizens. It’s worth the effort to store value that no government can seize.
5. Low transaction fees for transferring bitcoin (BTC) – Compared with banks (where the average transaction fees are $38.75) and international transaction fees, bitcoin has low transaction fees. As of the summer of 2019, the transaction fee for bitcoin was only $3.4, and there are other cryptocurrencies with even lower transaction fees.
Bitcoin is a good investment that will save you money over banking and international transfer fees.
6. Bitcoin regulation is being clarified for legitimacy – In 2010, there was no regulation on cryptocurrency. Countries started to ban bitcoin and other cryptocurrencies. Today, there are only a handful of countries that do not allow Bitcoin, including Egypt, due to a religious decree that classifies Bitcoin as haram.
There are still many countries embracing bitcoin as a progressive way to store value and transact in a digital marketplace. Even the Security and Exchange Commission in America has created a digital asset classification framework.
Global acceptance will help legitimize bitcoin and other cryptocurrencies, making them viable assets to global citizens.
7. Potential profits with bitcoin – Since the creation of bitcoin, it’s value and price have increased exponentially. It is a volatile market, but it is very promising for investors.
If you have plans to hold Bitcoin for the long-term, then the chances are good that the value will continue to grow with time.
8. Philosophical options and bitcoin – Many investors choose bitcoin because of the reasons behind it. For many, bitcoin is a global cause and a movement.
The meaningful fundamentals of bitcoin:
- * Transparency means that governments cannot control it.
- * Decentralization means that it cannot be confiscated or censored.
- * Immutability means that there is no lying or stealing. No changes.
Bitcoin’s early adopters were not criminals; they were human beings with vision and a philosophy of financial liberty and freedom.
9. Alternative to precious metals like gold – Gold has always been considered a valuable precious metal, but there was a time in the history of the United States where it’s citizens gold was confiscated and seized by the government.
This will not happen with bitcoin. It is a form of digital gold that cannot be confiscated or seized, and it represents a new era.
10. New asset class for diversification – Bitcoin is a new asset class. Bitcoin allows for diversification so that you can balance your portfolio and boost its value.
Reasons Not to Invest in Bitcoin
1. Bitcoin could become technologically obsolete – It is predicted that the new quantum computers that use the principles of quantum physics could make bitcoin obsolete by breaking its security within the next ten years.
2. There may be better options available to transfer value – Some of the cryptocurrency exchanges can charge users higher transaction fees when making bitcoin transfers. It may not be the most cost-effective option for small transactions.
3. It’s still in an early phase of development – Bitcoin has only been in existence for ten years, while the stock market is old at 300.
Storing bitcoin can also be a bit of a risk because if you lose your private keys, your cryptocurrency is lost, and there is no way to retrieve it. There are also instances of hackers raiding exchanges and stealing millions.
4. The government could conspire to take down cryptocurrencies – There could be a coordinated crackdown on cryptocurrencies by governments and corporations. There are currently two instances of large corporations Google and Apple suppressing certain cryptocurrency wallets and censoring YouTube videos due to public outcry on the issue.