Bitcoin currency is a digital, peer-to-peer, decentralized currency that made its debut a decade ago, and to attract people today. Amongst the many benefits that Bitcoin offers, perhaps the biggest is the fact that you get to make international payments and money transfers at much lower rates. This facility is available to both the old and new Bitcoin investors.
While many people continue to remain skeptical about the rationale behind the Bitcoin, the fact is that there are enough solid reasons to justify ownership of Bitcoin. Prior to these digital currencies, you could prove your ownership of digital funds only through a third party like a bank or credit card merchant. But, the Bitcoin is decentralized and there is no place for intermediaries or middlemen here for verifying transactions.
Why should you buy the Bitcoin?
- To begin with, Bitcoin has a finite supply and its rules are permanent. Even if new Bitcoins are mined, the total cannot surpass 21 million. This is different from regular fiat currencies that are printed by governments every day. So, if you are someone who does not like the idea of banks, financial companies and governments verifying your transactions, then Bitcoin investments through secured exchanges makes sense, as this bitcoin code review for 2020 explains.
- Bitcoin is scarce, and it will continue to remain so. This is also why Bitcoin prices have gone up so much. While gold may be scarce too, you cannot be certain what its ultimate supply is going to be. For instance, if a big gold deposit is discovered today like the famous San Francisco Gold Rush incident, the supplies would skyrocket and prices would plunge.
- Bitcoin is completely transparent making it far more appealing compared to the Federal Reserve. There is no transparency in a regular fiat currency system concerning transactions, nor does one know how much money gets printed. There is continuous inflation and one does not get an insight into the future financial policies.
- Bitcoin cannot be governed or censored. Even though China banned exchanges in 2017, the Bitcoin network continued to exist.
- International payments typically incur high expenses and take up a lot of time. While Bitcoin also has transaction fees which can escalate when the prices go up or if there is heavy traffic on the blockchain, still the fees are much lower than many foreign institutions.
- Regulations concerning the BTC are also developing in a constructive way. Earlier, there were no limitations or rules; so many nations had justifiably banned it. But today there are many countries that have embraced cryptocurrencies and even adopting Bitcoin as a method for payments.
- Bitcoin will offer you profits in the future. The journey may have been a rollercoaster ride but after the halving that will take place this May, things are likely to look up. If you can invest in Bitcoins and hold onto it, you can get good returns eventually.
- Finally, Bitcoin can be great if you want a diversified portfolio. For instance, if you hold many equities and bonds, you can swap a part of your holdings into BTC. This may help to reduce your portfolio’s volatility and guarantee increased returns.