Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a dispersed public ledger called a blockchain. Bitcoin is unique because there are a finite number of them: 21 million.
Over the years, Bitcoin has gained popularity as an investment vehicle. Here are five advantages of investing in Bitcoin:
- Portfolio Diversification
Bitcoin is a decentralized currency. It does not rely on a central bank or government to regulate its usage, which means that any country cannot manipulate it. It is considered an “uncorrelated asset “, meaning that it does not directly impact other investments in your portfolio.
In short, Bitcoin can protect your portfolio from downturns and add diversity to any investment strategy. If you’re just getting started with bitcoin trading, you must consider the right platform like Bitcoin Loophole for a better experience.
- Easy Transactions
One of the advantages that people enjoy while investing in bitcoins is that it provides an easy way to transact. Unlike other currencies, bitcoins can be used to send money anonymously across the world at any time. You need an internet connection and a bitcoin wallet address that you can create for free.
You can buy or sell this cryptocurrency through your local exchange. If you want to purchase bitcoin online, there are many websites where you can do so. It’s also possible to trade in bitcoins on currency exchanges worldwide, which deal in crypto-crypto pairs
- Incredible Security
Bitcoin is a protocol that delivers incredible security. The Bitcoin network is the most secure in the world for any form of currency and delivers a technological solution that has never existed before. It’s a decentralized network that allows you to store value without using any third party such as banks or financial institutions.
This means there are no passwords required if you lose your wallet, it can never be retrieved, and all of your money will be lost forever.
- Outsized Returns
Bitcoin is making headlines these days as it increases in value and is currently sitting at about $1,800 for one bitcoin. It has been the top-performing currency globally in six of the past seven years. While there are no guarantees that it will continue to rise, if you had purchased a single bitcoin worth US dollars in July 2010, your investment would be worth over $15 million today.
If you tried to buy a thousand dollars’ worth back then, your investment would now be worth over $35 million.
- Exponential Industry Growth
Bitcoin’s popularity and demand have been growing exponentially. Since its inception in 2009, Bitcoin has won over the trust of millions and continues to do so because it is decentralized, transparent, fast and highly secure. As a result of this real-life usability, more than 100,000 merchants have accepted bitcoin as a form of payment.
In addition to the merchants who accept bitcoins for their products or services, countless other companies have also started adopting bitcoin.
The Bottom Line
Bitcoin is the new future of currency, and if you don’t know what it is, then now is the time to learn about it. There are many advantages to investing in Bitcoin and other cryptocurrencies. So if you are looking for an easy way to become rich with no work involved, start investing in this digital currency that could replace paper money someday.