Indeed, Bitcoin has suffered several crashes since it was introduced by Satoshi Nakamoto in 2009. However, the cryptocurrency has increased in value over the years and is showing greater resilience. Despite its high volatility, Bitcoin remains a great digital asset.
For new investors looking to buy this digital currency, the cryptocurrency situation may seem confusing. Some of the information you read online can even threaten you. That’s because people have different views on Bitcoin. If you’re not sure if Bitcoin is a good investment, here’s why you shouldn’t hesitate to buy this digital currency.
Accelerate Bitcoin adoption
Global adoption of Bitcoin is continuously increasing. For example, the total number of digital wallet users increased in 2020. And in 2021, more people created blockchain wallets. Ideally, Bitcoin adoption is increasing by millions. And this only suggests that it is becoming more popular worldwide.
In addition, if you do, you can buy Bitcoin and send it to your newly created wallet. Platforms like Bitcoin buyers are getting more new customers every day. These platforms, also known as crypto exchanges, allow people to buy bitcoins using fiat money. Everyone wants to keep up with the current momentum of Bitcoin, so both institutional and individual buyers are on the rise. And as the demand for Bitcoin grows, its value continues to grow.
Bitcoin always hits record highs when recovering from a crash
Its historically volatile price is the main reason some people are afraid to invest in Bitcoin. Ideally, the price of Bitcoin can fluctuate significantly in a short period of time. This cryptocurrency has experienced valleys and peaks in its existence over the last decade. However, this cryptocurrency is always getting stronger every time it crashes.
Perhaps the reason for this variability is the small number of tokens in circulation. However, as institutional investors and merchants increase the adoption of Bitcoin, distribution will be promoted. Therefore, the world circulates more Bitcoin, thereby reducing this volatility.
However, Bitcoin’s volatility is not that bad. Some investors are taking advantage of Bitcoin by exchanging it for profit. For example, you can buy Bitcoin at the lowest price, store your tokens in your digital wallet, and sell them to make a profit when the value of this cryptocurrency increases.
Bitcoin is ideal for macro climate due to value proposition
Satoshi introduced Bitcoin during the 2009 global financial crisis. At that time, the world revolved around quantitative easing, government bailouts, and bank failures. Therefore, Satoshi introduced Bitcoin into the wild and most people ignored it.
Ten years later, the world faced a financial crisis with low interest rates, high quantitative easing, and more bailouts. Both businesses and individuals are becoming more aware of Bitcoin’s unique value proposition. They also know the position of Bitcoin in the macro environment.
Well-known macro investor Paul Tudor Jones said Bitcoin compares to gold in the 1970s. When COVID-19 struck the world, governments began introducing blockades and other movement restrictions, and people lost their jobs, some turned to the Internet to find ways to make money online. Bitcoin trading has become one of the activities people wanted to do to make money.
In addition, the ability of this cryptocurrency to maintain its value in the event of an economic crisis has attracted the attention of many. Most people lose confidence in government-issued money because they are subject to central bank operations. As a result, some people choose to use Bitcoin to store value.
Cryptocurrency awareness is growing worldwide. More people are accepting and using Bitcoin than it was 10 years ago. In addition, large companies such as Microsoft and PayPal are embracing this cryptocurrency. All these indicators suggest a bright future for this electronic currency. And that’s why you shouldn’t hesitate to invest in it. However, life goes on because if you invest what you can lose, you can lose a significant amount of money due to the volatility of this cryptocurrency.
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