Why Bitcoin is Here to Stay
Digital currency, payment system, peer-to-peer money, revolutionary technology? It is tough to define what Bitcoin is in a couple of words. One needs to see the whole picture of BTC in all its complexity to understand wherein lies its beauty and interest. Since its inception in 2009, BTC has come a long way. No investor on the planet can ignore its power as a haven asset and that it is here to stay. Despite still being highly volatile, Bitcoin has seen its price steadily growing over the last few months. There are good reasons to believe that this bullish trend will continue in the future.
Bitcoin Belongs to its Owners
Bitcoin was born more than a decade ago, just as the Subprime Mortgage Crisis was hitting the world hard. It offered a great alternative to an exhausted and mistrusted financial system. Its system is based on the novel Blockchain technology. Often dubbed “the most important technological discovery since the internet,” BTC was now going to allow safe, anonymous, peer-to-peer transactions without the interference of a bank or a government.
Most cryptocurrencies are decentralized networks based on the Blockchain system. Thus, Bitcoin owners have full control over their assets. More importantly, the value of those assets is solely determined by supply and demand.
Bitcoin, the Virtual Gold?
Fiat currencies, such as the US dollar, can be printed in large amounts by the will of a central bank. Then, compare it to the total amount of Bitcoin, whose supply will be exhausted once it reaches 21 million. One of the main advantages of Bitcoin is, in fact, its rarity. In his book “The Bitcoin Standard,” Lebanese economist Saifedean Ammous compares it to gold. Bitcoin stock cannot be artificially increased, and therefore cannot be impacted by inflation. Because it is rare and difficult to produce, like gold, BTC must be considered a safe and precious haven for investors. It is particularly true since the halving of May 2020, resulting in 50% fewer Bitcoins mined in each new transaction than before. Consequently, BTC had seen its price skyrocket in the weeks before the halving and kept steadily growing since, though at a slower pace.
A Replacement for Cash
Another reason to believe that Bitcoin is not going anywhere is because of the gradual disappearance of cash in many countries. Governments do this in an attempt to have tighter control of money circulation. The Covid-19 crisis has accelerated this phenomenon. We were told that in order to stay safe, we should use our cards to make contactless payments. Coins and banknotes were now unsafe to use. The fear of money as a potential means of spreading the disease had the global population paying with plastic. We have observed a rising concern among the population over the end of anonymity in transactions that could encourage more people to adopt Bitcoin in the next months and years.
Bitcoin, and other cryptocurrencies, are now more widely accepted on a global scale. Furthermore, you can use it as a payment method by e-commerce merchants. In the age of intensifying online trading, it is a sign that they are slowly becoming mainstream in our society. There are approximately 40 million Bitcoin users all over the world. A relatively small amount compared to credit card users. Nevertheless, the numbers are continually increasing, especially among the younger population. The value of BTC and its status as a safe haven investment will be reinforced with its growing popularity.
Do you own Bitcoin yet?
There are hundreds of things that can be purchased with Bitcoin today, from luxury cars to pizza, and we can expect to see more and more. If you are ready to jump on the BTC bandwagon, you’ve arrived. What’s more, you can sell just as easily as you buy!