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Bitcoin’s bull cycle has captivated the attention of many investors and put the crypto world in the limelight. Not only are people looking to invest in Bitcoin, but they also perceive it as a safe haven asset. What’s more, a lot of experts believe that Bitcoin will break $100,000 in 2021.
In this article, we explore the advantages of investing in BTC and the important things beginners should know about BTC when they treat it as a safe-haven asset.
Advantages of Investing in BTC
Bitcoin is a decentralized digital cryptocurrency developed by Satoshi Nakamoto, and it operates on a peer-to-peer blockchain system. The blockchain system, on the other hand, is maintained on a large number of computers around the world, which means the growing lists of records are distributed in a database of linked computer systems.
In fact, the blockchain system offers most of the advantages regarding investments in BTC. First, the blockchain system is not under control or will ever be of a financial institution or a central authority like a bank. It was built to operate based on the contribution of its users – Bitcoin miners that approve the transactions in the network.
This solves the double-spending problem, and also it enhances the security of the network. Moreover, the transactions are completed very quickly, and it doesn’t matter if you’re making payments within the borders of your own country or internationally.
Actually, the payments are usually processed in 10 minutes. Another advantage is that you remain anonymous when you make payments in BTC. And lastly, the blockchain system is tamper-proof, and there is total transparency of the data in the network. Hence, users can see if anyone changes anything in the system.
Online Exchange Sites
Another reason why Bitcoin is popular now more than ever is online exchange sites. The technology has improved significantly since 2009, the year Bitcoin was invented, and therefore there are a lot of options for anyone that has an internet connection and a mobile device.
So, individual investors are at an advantage here because there are many online trading sites to choose from. Besides, it is also very easy to keep track of your investments and stay updated about the latest news in this field. A great site for newbies in this field is the Bitcoin Loophole app. This is an AI-powered intelligent robot that completes the technical aspects of trading for you. You can earn up to 60% in daily profits, while the minimum deposit to trade here is $250.
The Digital Gold
It’s also worth mentioning that Bitcoin’s bull cycle is one of the main reasons why people want to make investments. The price of Bitcoin has broken numerous records in 2020 and surpassed even a price of $40,000 in January 2021.
And due to Bitcoin halving, an event that decreases the block reward of the miners, the supply of Bitcoin is also decreasing, which also makes the cryptocurrency a scarce asset, especially since the entire number of BTC has a limit of 21 million. What’s more, we have already mined around 18 million BTC.
Hence, the demand for BTC is increasing at a faster rate than the supply, and this is why the price is rising. Of course, there have been other bull runs, but this one is different because it is supported by institutional, big investors, and it is the longest one yet.
So, although Bitcoin is a volatile asset, it is still one of the best performing cryptocurrencies in the last ten years. And because it relies on decentralized blockchain technology, it isn’t influenced by financial crises like fiat currencies, for example.
As we mentioned earlier, Bitcoin supply is restricted, which is why it is considered the new digital gold. And, it isn’t directly correlated with the global financial market and its fluctuations. Hence, these are some of the reasons why people perceive Bitcoin as a safe-haven asset, especially if they live in a country that is affected by political unrest or economic difficulties.
Final Thoughts
In conclusion, Bitcoin today is seen as a safe-haven asset for a lot of investors, that are looking to add cryptocurrencies to their portfolios. And also, businesses are getting involved in the crypto world by accepting payments in BTC and other digital cryptocurrencies. However, Bitcoin is still a volatile asset, and the crypto market is small, which means certain events can shake up the price of Bitcoin and other cryptocurrencies.
In case you’re just starting out in this industry, it is important to carry out due diligence research and make decisions that are best for your financial budget and goals. Anyway, we all can agree that 2020 was an unprecedented year for cryptocurrencies in general, and they are a viable alternative to fiat currencies.
