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Bitcoin has become to cryptocurrency what Louboutin is for shoes, and Hoover is for vacuums. The brand that has defined an entire genre of commodity. Saying that you own a few satoshi’s means that you are on the cutting edge of finance. Understanding the wondrous, and often complicated, world of cryptocurrency at large. Whether or not this is the case.
Perhaps the most compelling thing about investing in Bitcoin is that you don’t really have to understand the market at all. Novice investors regularly turn towards newb friendly exhanchange like Bitvavo, and can still turn a tidy profit. All just by purchasing at the right time and holding on tight. Still not quite sure what all the fuss is over? Here are 7 reasons why everyday people are buying bitcoin.
It’s Secure
Bitcoin, and other cryptocurrencies, are incredibly secure- particularly when it comes to online transactions. This is because no personal information is sent when you transact bitcoin. Unlike traditional banking methods, bitcoin only uses a “public key”, or a wallet address to say where to pull money from, or where to send it. This public key is useless without users “private key” similar to a digital signature. And the only person who has access to the private key is the wallet holder themselves.
It’s Borderless
Bitcoin can be sent anywhere in the world. It’s not subject to exchange rates or multiple transaction fees, either. The transactions are quick, even when sending money to underbanked countries or obscure locations. Money transfers can take weeks and cost hundreds of dollars. Bitcoin transactions only take about ten minutes, and the fees owed are minimal in comparison.
It’s a Good Entry Point
Because bitcoin is so well known, and the oldest cryptocurrency in existence, it functions as a wonderful introductory currency into the world of crypto. Using the right exchange, the bitcoin network can be understood in simple terms, which can help users easily convert to more nuanced cryptocurrencies and the financial opportunities they hold. Like Ethereum’s smart contracts, Litecoin’s decentralized finance, and VeChain Thor’s supply chain regulation.
It’s Decentralized
Bitcoin is fully decentralized, which means it’s not subject to centralized banks or middlemen. A fully democratic banking system. Because of this, there is far less red tape (and expensive) involved in starting an account. There is also a much lower incidence of error and manipulation. The coin is also far more stable than most fiat systems, as its price can’t be artificially inflated.
It’s Pseudo anonymous
Bitcoin is considered pseudo-anonymous because little to no personal information is required in order to start an account. Not only that, but transactions don’t contain personal information either. With traditional banking transactions, your name, bank account number, address, and other bits of sensitive information can get transacted along with your money, making you more susceptible to identity theft. Centralized banks also often require your social security number, birth date and other highly sensitive information to start an account, keeping this information on file. These banks are also more open to cyber attacks- which means your information could easily be stolen.
It’s an Excellent Fiat Hedge
Bitcoin is being used as a hedge, or safe haven asset, for more traditional investments. Protecting investment portfolios against the sways of traditional fiat markets. Because bitcoin isn’t susceptible to inflationary practices, it’s value is derived from the economic principle of artificial scarcity. This means that instead of relying on a centralized bank, governmental stability, or a number of other factors, bitcoin is valuable because it is scarce. There are only 21 million bitcoins in existence and there will never be anymore. These coins are released, or “minted” at a specific rate, which gives bitcoin’s value more inherent stability than fiat. Similar to that of gold.
It Protects the Underbanked
Bitcoin can protect the unbanked and under banked by providing a viable alternative to fiat. As bitcoin is not susceptible to inflation, it can also be used as a hedge against fiat and personal assets. The fact that it’s completely borderless, isn’t subject to exchange fees, and accounts can be easily obtained without a credit history, means that it’s the ideal currency for someone who lives in an unstable economic or political climate. Argentina can be an excellent example of using bitcoin as a personal asset hedge. Adoption rates of bitcoin users in Argentina soared after hyperinflation occurred secondary to economic instability.
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