Unique Reasons to Invest in Bitcoin

Bitcoin was introduced in 2009, and it's been 12 years since this amazing digital currency came into existence. No one has even imagined that a string of digits that is generated on the computer can be this popular and skyrocketed. Before bitcoin or any digital currency was introduced, banks and the government used to laugh at the idea of introducing digital currencies that will replace banks. It was unimaginable for anyone to think about a digital currency that won't require the permission of banks or the government.

So, you must have thought of buying some bitcoins to hold them for the long term and earn profits. But in reality, you must never go with the hype of bitcoin and invest your money in it. If you are planning to invest in bitcoin, it is foremost important to learn what bitcoin is, why you should invest in it and then search on the process to buy bitcoins. Though it’s been 12 years since bitcoin came, it is still not stable, and its price keeps on fluctuating every minute. Without understanding its basic concept, you must not invest in it. For more information you can visit bitcoin trading platform like this software

If you know the basics of it, know the potential of bitcoin, and understand why you want to invest in it, you can take further steps of investing in bitcoin. So, what’s special about this extremely popular digital currency? What determines bitcoin’s value? Let us pull the curtain and know about bitcoin and learn what makes it different from others. So, should you invest in Bitcoin? What are the reasons to invest in it?

Controlled supply

Currencies have value because people believe that they are valuable. Anything that has value is determined by its demand and supply in the market, and this same thing goes with cryptocurrencies as well. As compared to fiat currencies, digital currencies like bitcoin are relatively new, but this currency offers features of limited supply, which increases its value more than fiat currencies. Like gold, bitcoin is also limited, and limited things usually have high demand. Bitcoins are mined using specialized hardware, and their value is limited to 21 million coins. No bank or government can increase or decrease its supply.

Decentralization

Bitcoin is the first and truly decentralized digital currency across the world. It is a peer-to-peer digital currency that is different from traditional currencies. It is not issued or regulated by the government or banks. Bitcoin is a global currency that you can send anytime, anywhere, and anyone without boundaries and restrictions. It is unbelievable to know that the founder of bitcoin, Satoshi Nakamoto,
disappeared suddenly, and no one knows his identity. After Satoshi disappeared, no one controlled the bitcoin network.

A great way for diversification

Around 30% of investors invest in bitcoin instead of traditional investment options like bonds and stocks. Though people consider bonds, stock, gold and real estate a great way for investment purposes, investors need to diversify their portfolios. Bitcoin is a great way to diversify your investment as it diversifies the investment and provides amazing returns on investment. Bitcoin is a risky but highly rewarding investment. If you want to hold bitcoin, you must be careful about price movements.

Network effects

Out of all the cryptocurrencies, the network of bitcoin is the largest. The network effects lead to the success of bitcoin. There are seven network effects of bitcoin that we will read here that include:

● Merchants
There are more than 100,000 merchants worldwide who accept bitcoin as a medium of exchange because the speculators hold bitcoin. Merchants worldwide can avoid issues like chargebacks and credit card fees.
● Speculators
The skyrocketing price of bitcoin attracts the speculators into trading, buying and selling bitcoin to earn good returns.
● Consumers
Consumers who shop or spend bitcoins can save their money as they don’t have to pay transaction fees. Also, some websites allow users to earn money or huge discounts when using bitcoin as a payment method.
● Miners
Miners are the main contributors to the bitcoin network. Speculator trade, merchant
acceptance and consumer adoption lead to increased price and more incentives to miners.