3 Reasons Why You Should Consider Including Bitcoin in Your Portfolio
One of the most innovative inventions of the modern world is Bitcoin. Ever since Satoshi Nakamoto released the white paper of this digital currency, everything has not been the same with the financial industry. The asset has been able to change the industry with little to no pressure.
Over time, Bitcoin has generated interest among the public, primarily through its current bull that raised its value to an all-time high. While some market players of the traditional financial system were looking at the crypto industry with scorn and as a bubble initially, they have now been forced to sit up since they realize it is here to stay.
Hitherto, investment in Bitcoin was mainly from retail investors, but 2020 was the year we saw the participation of more retail investors who now believed the project was a viable option. PayPal, Square, and the rest of them began to improve their system to allow for Bitcoin transactions and even hold the coin. And those who had spoken ill of the asset, like JP Morgan, have been forced to retrace their steps.
As it stands now, Bitcoin is way ahead of top financial institutions like Visa, MasterCard, and even other large companies like Berkshire Hathaway with its market capitalization. The general crypto industry has a market cap that is also over a trillion US dollars, and it has been posited that this could double in the next six months.
In this article, we would point out three reasons why everyone should be investing in Bitcoin.
Hedge against inflation
One of the motivating factors that led to the creation of the coin was the economic recession that hit the world hard in 2008. Here, it was terrible decisions made by central bodies like banks and other financial institutions that dragged everybody down. And the downside of it was that the government bailed out these institutions by printing more money.
When fiat currencies are printed on a whim, it usually will depreciate the currency and inflation of the overall economic system. But with Bitcoin, there are mechanisms put in place to correct such occurrences. Bitcoin price is determined by the demand and supply of the market. And there is a finite supply, which makes it a viable hedge against inflation.
The world is going digital.
There is no denying that the world is going increasingly digital. Everything we do is now almost on the internet, so why should our finance not be so too?
With Bitcoin, users can carry out their transactions with their digital wallets without any problems. It also presents an opportunity for people without access to the conventional financial system to access financial services; all they simply need is access to the internet, and they are good to go.
Fast, cheap, secured, and anonymous transaction
Bitcoin transactions are fast, cheap, and very secure. And with people now more particular about their privacy globally, Bitcoin also offers a layer of anonymity.
Recently, we saw a case of a transaction worth over $500 million attracting less than $10 as its transaction fees. This is not only impossible in a traditional financial system, but it would also take time and depend on loads of paperwork. However, both parties involved in the transaction were able to do this in a matter of minutes, if not seconds.
That is one advantage Bitcoin holds over the conventional system, the ability to carry out transactions in an efficient and timely manner.