The question of whether or not to invest in Bitcoin has become more blurred in recent years. After the cryptocurrency reached an all-time high in 2017 and then crashed again, it's easy to scratch your head about what's right.
Here are ten strong reasons why Bitcoin is a strong buy in the long term if you check the following indications:
Only 21 million Bitcoins will exist.
This year, an average of about 144 blocks are dug per day, with each block giving a reward of 6.25 BTC. This means that 900 BTC's are distributed daily until the next halving and in a little over 100 years the last block will be excavated.
For this reason, it may be a good idea to accumulate as much BTC as possible now, as it will one day be an exclusive.
You can read more about Bitcoin mining and how it works here.
Only you have access to your Bitcoins.
If you have a Bitcoin wallet where you have been assigned seeds, i.e. at least twelve unique words, only the person who has access to the words owns them. the wallet. It also means that neither the bank nor any other authority can confiscate your cryptocurrency as they do not have access to it.
Experts speculate on prices above $100,000.
This year (2021) has been Bitcoin's best in terms of price as it reached a record level of $63,000.
Despite a correction to USD 35,000, there is speculation of prices well above USD 100,000 in the near future as companies, financial institutions and people in general have become aware of the cryptocurrency and are investing heavily.
You can earn over 7% annually on your cryptocurrency with DeFi.
Just like interest at the bank, the you now get interest on your Bitcoins by lending them to DeFi companies. The business model is that you lend your cryptocurrency to, for example, Blockfi, which in turn lends them on. In this way, they earn a higher interest rate on your loan and can give back up to 7% annually directly to your account.
Bitcoin is becoming an accepted payment method.
Large Fintech platforms such as Paypal have chosen to invest in Bitcoin, but also smaller companies such as hair salons, technology stores and other businesses. This creates an effect that makes Bitcoin more interesting and accepted, which in turn provides greater liquidity.
More cryptocurrencies being integrated, the higher prices will be seen going forward as the Bitcoin is based on supply and demand.
Bitcoin is not subject to the same inflation and devaluation as the FIAT currency.
As we previously wrote, there will only be 21 million Bitcoins in existence, while banks around the world are printing more and more money which over time leads to inflation, devaluation and hard times. The hope that Bitcoin and other cryptocurrencies can solve this problem is high among the Bitcoin community and confidence is growing as more people start to realise this.
Bitcoin is the leading cryptocurrency.
There are currently over four thousand cryptocurrencies and despite this, there is no alternative that has surpassed Bitcoin when it comes to price. It is even the case that the remaining cryptocurrencies follow a good bit both when Bitcoin rises and falls.
Bitcoin is a perfect alternative to gold.
Since we nowadays live in a digital world and gold has been a popular investment option, Bitcoin is a strong contender. The reason for this is because unlike gold, Bitcoin does not weigh anything unlike gold which weighs a lot. Thus, you can transport any amount of cryptocurrency while gold is not as easy to transport.
It is also easier to pay with Bitcoin because it is more accepted than paying with gold. For example, if you go to a restaurant or hotel, they are more likely to take BTC as payment than a small gold bar.
As we mentioned earlier, fiat currency can be confiscated by your bank, but so is gold. Since Bitcoin is not physical and is locked to your seeds, Bitcoin cannot be confiscated.
You can easily exchange Bitcoin for Swedish kronor at an ATM.
If you have an account with an exchange such as Binance, you can apply for a Visa card where you can easily move cryptocurrency from your spot account to your card account. You can then use your Binance card in a shop or withdraw money from an ATM for an exchange fee.
You can buy and sell Bitcoin against other cryptocurrencies on an exchange.
If you own Bitcoins and find out about another cryptocurrency that is or will be trending, you may want to take advantage of the of the potential rise. This is possible by using an exchange that you prefer, but we always recommend Binance or Coinbase for this purpose as it has high liquidity.
To give an example of this, an investment on 1 January 2021 of $1000 of the cryptocurrency Dogecoin would be worth $121,000 on 5 May 2021.
If you also want to try your luck with Bitcoin and you can test automatic trading with Cryptosoft.