With the cryptocurrency market going through a tremendously bearish phase over the last few months, you may be wondering if there are enough reasons to invest in bitcoins or any other cryptocurrency at all.
One of the coins, whose price underwent one of the most notable fluctuations was Bitcoin, the most well known of all the cryptocurrencies. So much so, that in mid-December, its price had fallen to as low as 3209 USD. However, though Bitcoin is not out of the woods, with the turn of the new year, there has been a huge recovery in its prices.
Here are a few reasons for you to peruse if you are doubtful about buying Bitcoins, this new year.
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Bitcoin has been around for ten years in the crypto market now, which indicates that it is also likely to stay for good. Moreover, it has turned out to secure and reliable, and since its brief outage in 2013, which was fixed very quickly, it has been operational for 24/7/365.
2. Scalability and price correction
Bitcoin has been the victim of severe fluctuation in its price but has always managed to bounce back. In 2017, it has reached its all-time high of 19500 USD, before making an inevitable correction. Similarly, before the recent bearish market began, Bitcoin’s price had been steady for quite some time which then fell to approximately 3200 USD. However, it is already showing signs of recovery.
This cycle of growth and fall is indeed a healthy marker for a crypto coin, which not only provides the best buying opportunities but also heralds more activity.
Bitcoin is the cryptocurrency with the most use cases, which is gradually almost becoming a household name. It is the oldest and most recognized cryptocurrency across the world.
4. Gradual involvement of institutional investors
As Bitcoin’s popularity is on the rise, so are the number of regulations and bitcoin-based securities.
This is and will in the future encourage more and more institutional investors to participate, thus providing the stimulus for greater mass scale adoption.
5. Limited supply
There will ever be only 21 million Bitcoins available, where the number of bitcoins that come up with mining falls by half, every few years. 80% of all bitcoins have already been mined, and no more coins will be mined before 2040. This limited supply is and will in the future raise demand, which will also result in an increase in price.
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6. No authority can devalue it
Akin to the value of gold, the prices of bitcoins cannot be devalued by any federal reserve like authority as it exists on a decentralized computer network, transcending national borders.
7. Lightning network
Bitcoin uses the lightning network, which allows anyone to conduct transactions of bitcoins instant, with minimal fees, while ensuring that no third party takes custody of your coins.
The lightning network functions through a network of so-called payment channels. Currently, Bitcoin has 2700 nodes, 9000 channels with a total capacity of 63 BTC.
8. Unstable global economy
While some countries are going through a crisis of weakening fiat currencies, the demand for Bitcoins has been high. The worse the traditional economy gets, the better it is for bitcoin.
The general instability of the financial market of today’s world is also an indicator of why it is a good idea to stack up on bitcoins soon.
9. Censorship-resistant currency
Bitcoin uses the lightning network and is on a decentralized blockchain network, which is way more secure than fiat and traditional currency can ever be.
In today’s age, demand for such censorship-resistant currency is also very high.
10. Correct time to buy Bitcoins
Bitcoins’s market has gone through several market cycles, and since the same principle applied in all these cases, it is expected that Bitcoin’s priced will take a turn for the better, as has been the case so far. It is thus safe to say that, now that Bitcoin’s price is roaming around in the lower rungs, it may be the best time to invest in them as, as per predictions, bitcoins will regain its bullish run soon.
Though you may be wondering about the best cryptocurrencies to invest in, Bitcoins have been around since the concept of cryptocurrency has been normalized. Moreover, with more and more acceptance of bitcoins into the daily life of people, it is a good idea to take advantage of the bearish market and invest in bitcoins in 2019.
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