It is no doubt that the world is increasingly becoming more and more dependent on technology and the Internet. Countless innovations are disrupting traditional markets. For instance, books and songs can now be bought and stored in a single device, hence, disrupting the distribution of these goods. Another example is how technology has disrupted the regular commute of people through ride-sharing apps.
You see, almost every industry sector has something that catalyses change and modernisation that is driven by technology and innovation. And the finance and trading sector is no exemption.
The cryptocurrency network is changing how people protect and grow their wealth — switching from inflated flat currency to digital money.
You’ve probably heard about Bitcoin. Bitcoin has been very controversial within the last year and has earned so many critics. Many conflicting beliefs surround it, but in fact, very few really understand what it is.
So what is Bitcoin?
Cryptocurrencies are not controlled by a central entity. This enables people to protect their wealth from the government and other authoritarian control. Bitcoin controls over 52% of the cryptocurrency market and is aiming to reclaim two-thirds of the market by the end of this year.
So if you’re looking into investing in cryptocurrency, it may be a good idea to invest in Bitcoin.
If you’re still unsure whether or not investing in Bitcoin is a good idea, here are 5 reasons why you should:
1. Bitcoins are scarce
There are only 21 million Bitcoins in the world, which makes it scarce and its value potentially very high. Investing in something that would potentially increase in demand (in the long run) is a smart move in itself. That’s the power of scarcity.
Aside from that, some traders view Bitcoin as “digital gold” because of its limited amount. Moreover, Bitcoin, they say, is even a smarter investment due to the lesser costs it needs to store, transport, and verify.
2. Bitcoin adoption is growing
More and more banks and financial institutions are recognising Bitcoin as a legitimate currency. Countless firms and platforms have made it possible for all Bitcoin holders to do cross border payments and money transfers. The establishments accepting Bitcoin payments are also growing in number. Slowly but surely, the market is assimilating with the use of Bitcoin.
3. Regulations on cryptocurrency trading are set, and more are coming
Governments are laying out rules and regulations with regards to cryptocurrency trading to protect traders from spoofing and trade discrepancies. Yes, there could still be an improvement in cryptocurrency trading laws, but current regulations offer cryptocurrency holders certain legal protection. Cryptocurrency investments are recognised by many countries either as a security or as a digital currency.
4. Bitcoin’s value is still high after a price crash
After the bubble burst in 2018, Bitcoin’s price crashed causing some conservatives to laugh at cryptocurrency traders. However, even with this price crash, historical price data suggest that Bitcoin is set to go only on an upward trend on the market scale.
With Bitcoin developers still continuing to innovate the currency, this would most likely be the case.
5. You should ride the wave of technology
Innovators are constantly working with technological advancements to create something that would make everyone’s lives easier. In this world, there is always something that can be improved or even changed for the better.
Just look around you. What once was there 30 years ago has been replaced with something much more technologically advanced. Think of the future, about 20 years from now. With the trend to innovate, do you think we’ll still use paper money by then?