In 2008 Satoshi Nakamoto, or better, a person or a group by the pseudonym of Satoshi Nakamoto, posted a white paper introducing a decentralized peer-to peer electronic cash system. Based on a technology introduced in 1991 (that went unused and whose patent lapsed in 2004), the double spending protection in Bitcoin was provided by a decentralized peer-to-peer protocol that allowed to verify the transactions. In short, BTC are “mined” for a reward using the proof-of-work mechanism by individual miners and then verified by the decentralized nodes in the network.
On Jan the 3rd 2009, Bitcoin came to existence when the first bitcoin block was mined by Satoshi Nakamoto, which had a reward of 50 BTC. The first recipient of Bitcoin was Hal Finney, who received 10 BTC from Satoshi Nakamoto in the world’s first bitcoin transaction, Jan the 12th 2009.
Since then million of people have been asking a simple question: is BTC a good investment?
At Investment Thrills we have our good share of experience on the topic and we want to provide you 8 reasons why you should invest in Bitcoin! Here they are …
1 Bitcoin has permanent rules
PERMANENT RULE #1 : BTC will never cross over its 21 million coin supply cap.
Although new coins are mined and added to the circulating supply regularly, Bitcoin will never cross over its 21 million coin supply cap.
That is a permanent and public rule and no one can change it.
For sure this rule is against the trend of all world governments, who print more money every day creating inflation. With BTC NO company/government/bank can make more. Which leads to the second reason why to buy them …
2 Bitcoin has value because it is ‘scarce’ by design
Do we remember the old and trusted law of the market? Price is the break even of demand and offer and scarcity drives price increase!
So, one of the main reasons BTC has increased in value so dramatically is its scarcity.
If all the Bitcoin supply (21 million ) were to be distributed evenly across mankind, there would only be 0.0023 BTC for each person. If you own more than 0.0023, you will own more than most people will be able to own.
Let’s consider another scarce resource: GOLD! … even if we don’t know what its final supply will be … If a huge mine will be discovered somewhere, the supply of gold would increase quickly, and its value would go down …
If we consider Bitcoin a form of ‘digital gold’ and if it reaches the same total valuation as gold ($6 Trillion market cap): that would put the BTC price at approximately $340,000 per coin. Nice, isn’t?
3 Bitcoin is transparent
BTC has two things that no other currency in the world has: decentralization and transparency.
As explained before it works on a decentralized peer-to-peer protocol (= no banks, no governments ..) that allows to verify the transactions. Why buy Bitcoin, if not for those two reasons alone?
BTC’s transparency makes it more secure than the Federal Reserve, who prints money every day, inflating the economy. We have no insight into future monetary policy, and we don’t have a way to audit the Federal Reserve.
BTC is really just math, code, run by individuals on their computers all over the world to ensure the credibility of it. What do you like the most … fiat currencies dictated by government monetary policy or Bitcoin governed by a protocol run by a distributed network of computers?
4 Bitcoin is profitable
After its creation in 2009, BTC price has been on a parabolic uptrend.
Sure the growth has not been steady but bumpy … there have been dips, peaks, and valleys … but zooming out we see a strong value growth. That has pushed its price from less than $0.01 to where it is today.
For example a $50 investment in 2009 would have netted you $100 Million at Bitcoin’s peak in 2017.
5 Bitcoin is great for diversification
Diversification is another reason why you should invest in BTC.
Let’s talk about ‘investibility’ … Bitcoin exchange trading volume is above $1 billion a day and has roughly the same liquidity of the largest gold ETF (GLD).
This are great indicators that BTC could be a very liquid asset over time. In addition its accessibility around the world should drive more liquidity than assets ‘siloed’ within countries/borders, such as GLD, which only trades in the U.S.
This implies that BTC are a good investment playing in a totally different ‘system’ … so they can be considered a new asset class, excellent for diversification.
6 BTC is an excellent alternative to gold
Gold is been told, for decades, one of the best assets to invest in … and we agree with it. Is gold the best investment you can make in today’s digital world?
A gold bar weighs around 25.7 pounds, is not so easy to move and cannot be used at the supermarket! … on the other hand Bitcoin is weightless and can be bought, sold, and transferred as easily as a swipe or two of your fingers.
Since we spend so much time in our digital world … shouldn’t we demand a form of digital gold? We need something electronic, fraud-resistant, portable, and accessible to everyone.
BTC thick all of these needs and more, it has some qualities that gold cannot have:
easily portable, not confiscable, more accepted at restaurants, clubs, stores …
7 BTC transfer is cheap
International payments can be time-consuming and extremely expensive with fees ranging from 3% to above 10% … not to talk about the days/weeks it takes to process.
BTC has fees too, but they are sensibly lower than the one applied by all the other institutions … For example Wells Fargo charges $45, Chase = $40 … BTC = $3.5 (May 2019)
Bitcoin is definitely worth buying for those of us who need to make international transfers and don’t want to pay outrageous fees or wait a long time.
8 Bitcoin is based on financial liberty
Satoshi Nakamoto , the inventor of BTC, created it for a philosophical cause too. He created a decentralized and transparent system as a reaction to the financial crisis that was storming 2019 … financial crisis caused by big banks playing fast and loose with people’s money … and with governments around the world bailing those banks out using taxpayer dollars!
The foundations of Bitcoin are: 1) Transparency … which means less institutions negative control and oversight 2) Decentralization … which means big banks and governments can’t censor or confiscate your money 3) Immutability … which means transactions can’t be changed and are visible
The early adopters of BTC were visionaries and philosophers. They wanted financial liberty. And you?
Are you interested in Bitcoin and cryptocurrencies but you do not know how to start? Stay tuned for more info … tips on how to invest & the best sites where to go!!