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5 reasons to invest in Bitcoin in 2024
Image from Kanchanara on Unsplash
While most cryptocurrency assets rely on innovative blockchain technology to protect and transform digital money, the future role of some coins remains ambiguously unclear. Bitcoin (BTC) continues to enjoy impressive success as one of the best-performing crypto assets in the world, giving investors the safest exposure to big deals in the cryptocurrency market. Here’s why you should invest in Bitcoin in 2024.
Price history
Since its launch in 2009, Bitcoin has attracted a wide range of investors with an eye on life-changing gains and generating remarkable growth. Based on reliable historical Bitcoin data, Investors were trading this digital currency for just $0.10 in 2010. Three years later, Bitcoin was already gaining ground, reaching highs of $250. The trend has continued over the years and today Bitcoin reaches an all-time high of over $68,000, so the numbers speak for themselves.
It operates in the liquid market
Another good reason to do it buy Bitcoin is that it works in a highly liquid market, making it simple to enter and exit the market. With its current market capitalization with a value of over $500 billion, as an investor you have access to a lot of liquidity and high trading volumes. More importantly, you can cash out your Bitcoin into fiat money anytime, anywhere, in just a couple of minutes. You just need to deposit your Bitcoins to a reliable cryptocurrency exchange to generate a sell order.
It has a fixed and finite supply
Inflation, which can result from central bank policies, remains the most significant challenge with traditional currencies as it increases the cost of living. Bitcoin helps solve this problem in numerous ways. First of all, determining the supply of this cryptocurrency is done via code. This makes it difficult for central banks and governments to manipulate the supply of Bitcoin.
Additionally, new Bitcoins enter circulation every 10 minutes, which adds up to approximately 900 new BTCs per day. This helps protect Bitcoin’s supply from hyperinflation and keeps it predictable. Bitcoin’s limited supply ensures that this digital asset appreciates over time. Note the halving effectwhich ensures that Bitcoin remains scarce over time
The nature of Bitcoin’s decentralization
Bitcoin stands out as a decentralized asset, which implies that this digital asset has no single point of failure. No one organization or entity can control the Bitcoin network, unlike most other financial assets. For example, a traditional currency, such as the US dollar, is regulated by the central bank, which dictates its economic policy regarding supply levels and interest rates.
Centralized financial institutions they often carry great risks, as investors can lose deposits if the entity fails. Holding Bitcoin, on the other hand, allows you to control your wealth, especially if you hold the cryptocurrency in an uncustodial wallet. No third party can freeze or seize your Bitcoins.
Versatility
Bitcoin is highly versatile, which broadens its appeal to a wide range of investors. You can use it as a hedging asset, especially in seasons of economic uncertainty when traditional investments are threatened by factors such as currency devaluation or inflation.
Bitcoin also serves as a digital store of value, providing a modern alternative to gold. This may especially appeal to investors looking to preserve wealth over time in assets regardless of market volatility. You can also use Bitcoin as a currency for transactions. This digital asset lets you make global transfers faster without third-party approvals or intermediaries, and at a lower fee.
Bitcoin is undoubtedly reshaping financial interactions by providing multifaceted value to investors. This digital asset holds revolutionary potential due to its ability to meet diverse and changing financial needs.
-In collaboration with blogoutreach