Reasons to Buy Bitcoin as an Investment

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If
you have been researching Bitcoin, you have come across HODL. This meme started
as a typo for hold on an online forum. The crypto community found this word
amusing and began using it to denote holding instead of selling the
cryptocurrency.

Bitcoin is naturally a volatile asset, with prices changing dramatically. For that reason, some people wonder whether Bitcoin is worth investing in. with more crypto exchanges like the Bitcoin trading software emerging almost every day, buying and selling this crypto asset is now easier than ever. Thus, investing in Bitcoin may appear like a no-brainer compared to buying and selling stocks.

Bitcoin’s
hype from social and conventional media makes it look like the hottest thing to
buy. Many people want to buy Bitcoin to avoid missing out. Unfortunately, some
individuals have blindly lost significant amounts of their hard-earned money
for trading Bitcoin. At the same time, some people have become crypto
millionaires from investing or trading Bitcoin. So, why should you buy Bitcoin
as an investment?

Bitcoin Can be a Store of
Value

Bitcoin
is naturally volatile. Therefore, some people don’t see it as a stable value
holder. But, this virtual currency has proven its ability to hold or increase
value since its inception. If somebody bought Bitcoin and held it in their
crypto wallet since 2010, they can sell it at a higher price today.

Crypto
experts predict that Bitcoin value will continue to increase until miners
produce all the 21 million coins. Therefore, anybody buying Bitcoin and keeping
it in their crypto wallet today will eventually sell it at a higher price. On
the other hand, stocks and other conventional assets lose their value due to
economic turmoil. Thus, they may not provide good value storage.

Bitcoin Could Be an
Inflation Hedge

Many
people consider Bitcoin an inflation hedge and digital gold. That’s because
cryptocurrency has a built-in scarcity. Miners will stop minting new coins
after hitting the 21 million coins mark. Therefore, this cryptocurrency’s value
will increase as its demand rises due to mainstream adoption.

Bitcoin
works as an inflation hedge since its protocol limits the number of coins that
can ever circulate. Some people believe that portfolio holdings diversification
and inflation fears drive Bitcoin’s prices. Also, Bitcoin is gradually becoming
a digital currency that people use regularly.

Also,
not all cryptocurrencies can be an inflation hedge. That’s because they don’t
have scarcity in their algorithm, meaning there are inflationary since they
don’t have a maximum amount.

Participating in
Decentralized Banking

Peer-to-peer
decentralized ethos is partly the reason people love Bitcoin. Essentially,
Bitcoin facilitates permissionless banking. This virtual currency brings a new
consumers generation to the algorithmic money’s digital economy. Theoretically,
this eliminates the need for centralized banking and the associated oversight
and fees.

Smart
contracts mainly make a decentralized ecosystem or even world possible. An
open-source, coded algorithm that users see on the blockchain facilitates the
enacting of their instructions.

Final Words

Investing
in Bitcoin could make you part of the future financial infrastructure and
technology. Although Bitcoin is a volatile asset, it could become an acceptable
digital currency. More people want to own and use this virtual currency due to
its benefits over conventional money. What’s more, several platforms enable
people and enterprises to invest in Bitcoin and earn passive income. Buying
Bitcoin as an investment means you don’t rush to sell your digital coins,
whether the price increases or drops. Instead, you hold your tokens for the
long term. And this could earn you significant returns since this
cryptocurrency has shown price increases since its inception.



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