Is bitcoin a good investment in 2021?
Bitcoin has been around since October 2008 when it was created by a person who goes by the pseudonym, Satoshi Nakamoto. He ushered in the use of cryptocurrencies for financial and investing activities.
You may hear people encouraging you to buy bitcoin but if you’re unsure about making even the minimum Bitcoin investment, it’s not surprising. The perspectives on Bitcoin are so polarized, some even calling it a ponzi scheme.
You may have also noticed that Bitcoin’s price is volatile, but it keeps going up over the long term. It’s not too late for you to get in the game. Keep reading to learn why I invested in Bitcoin.
You Can’t Print Bitcoin
Governments around the world print money every day. Bitcoin will never cross over its 21 million coin supply cap. New coins are mined and added into circulation, but the 21 million rule is permanent.
This prevents your investment from being manipulated by the government. As the US prints more money, that devalues our currency. Bitcoin is protected from inflation because if demand rises, there is no ability to increase the supply. The supply can only come from the people who hold Bitcoin and are willing to sell.
Digital Gold
Bitcoin is often compared to gold. While it has similar qualities, it also has some better ones. In order to transport gold, it costs money to get it from one part of the world to another. Bitcoin, on the other hand, travels for free over the internet by an online transaction.
In order to prove how much gold you own, it has to be verified. You can show how much Bitcoin you have because it’s fully transparent and anyone can verify how much Bitcoin a certain address holds.
If Bitcoin becomes a form of digital gold and reaches the same total valuation as gold, a $6 trillion market cap, Bitcoin would be worth approximately $340,000 per coin.
Bitcoin is Transparent
When thinking about your money, wouldn’t you feel safer if the Federal Reserve was more transparent? If we knew how much money was being printed and where our tax dollars were going, we could better protect our investments.
Bitcoin’s transparency is in direct conflict with the Federal Reserve. If the Federal Reserve was using Bitcoin, we would know exactly what they were doing.
Want to know more about buying Bitcoin? Click here to view the steps to do so.
Why I Invested in Bitcoin
Now that you’ve heard the reasons why I invested in Bitcoin, don’t just take my word for it, look at some bitcoin investment reviews and make your decision.
Investing in Bitcoin might be riskier than other investments, but the risk comes with the opportunity for a huge reward. Remember that consulting with a financial advisor is always a good idea before proceeding.
Looking for more financial news? Bookmark our site for easy access to our blog articles pertaining to a variety of financial issues. We have you covered.
