Have you considered putting money into Bitcoin but have not yet taken the plunge? Many people worldwide have put their faith in cryptocurrency. In fact, 60,000 respondents were asked about cryptocurrency, and 97% of them consider it a safe and advantageous avenue of investing.
There are many great reasons to include cryptocurrency in your portfolio. Read on to find out 10 of the major benefits of investing in Bitcoin.
1. Ease of Investing in Bitcoin
Using cryptocurrency has become easier and easier. With the use of a smartphone app, hardware wallet, or exchange wallet, you can handle bitcoin transactions with ease.
Bitcoin ATMs are available, where you can purchase Bitcoin with cash and then send it to a digital wallet or phone. This is an excellent option for those who might not have access to the more traditional financial system.
2. Low Transaction Costs
If you need to move your money around, one of the other benefits of crypto is that the cost of transacting is relatively low. Bitcoin transactions can range from a few cents to several dollars, whereas an international wire transfer can cost $50 or more.
3. Around-the-Clock Accessibility
Whereas banks and stock markets close at the end of a workday, Bitcoin never sleeps. As long as you have a smartphone or computer and an internet connection, you can buy, sell, and transfer cryptocurrency 24/7, 365 days per year, including weekends.
Why is it that emergencies always seem to happen at night or over a weekend? If you need to send money to someone overseas on a Saturday or need funds in the middle of the night, accessing your funds anytime is one of the major benefits of Bitcoin.
Transferring bitcoin is also super fast. A transfer to someone overseas could take days, whereas transferring bitcoin can take place in as little as 10 minutes. When there is no time to wait on stock markets and banks to transfer your funds, online transactions are the way to go.
4. Highly Secure Transactions
Being rooted in cryptography and blockchain security makes cryptocurrency a very secure form of payment. This security is largely determined by hash rate, the measure of computational power miners use to process transactions. Because Bitcoin has a higher hash rate, it is considered to be the most secure cryptocurrency.
You must have a private key and a public key to access your digital wallet. The public key is held by the crypto exchange through which you invest. You use your password and your private key to access your account.
Unless someone gains access to your private key, they will not be able to access your holdings, even if they breach the public key. And with Bitcoin’s public key cryptography, every transaction is authentic and completely irreversible once processed.
5. Possibility of Outsized Returns
For over a decade, Bitcoin has proven to be one of the top-performing assets. At its beginning, in 2009, it was worth virtually $0; the Bitcoin price range today is around $23,000. The S&P Index of stocks sees gains of about 8% per year, whereas Bitcoin has seen millions of percentage points’ worth of returns.
This level of high growth can bring very high returns. With more users believing in Bitcoin as a favorable global currency, more investors and businesses are adopting it, helping increase the higher return potential.
A governmental body or central bank does not regulate Bitcoin. Since the price is not linked to the government, users have more control and autonomy over their investments.
Being distributed over many different computers allows the Bitcoin network to avoid being taken down by the government or other organizations. Bitcoin price is not linked to governmental policies, which is a major advantage to investors.
7. Private Transactions
The public and private keys used in Bitcoin transactions are 26–35 characters of alpha-numeric text. So although the blockchain transactions are public, they are pseudonymous. Your wallet address contains no specific information about you and tracing transactions back to the user is not possible.
If somehow the address for your wallet becomes public, you can generate a new wallet address, keeping your information safe.
No other personal information is needed to make Bitcoin transactions, making it more private than your average bank, from which much more of your information can leak.
As mentioned already, the blockchain ledger is public and all transactions are permanently viewable. Anyone can search and see completed transactions, including location, time, and the amount sent from a wallet. The balance of any particular wallet is also visible to anyone.
With everything out in the open, fraud is less likely to occur. It is much easier to prove that appropriate funds are available or that money was, indeed, sent and/or received.
9. Store of Value
The inflation of the dollar is well known. Many factors play into the dollar’s value, and one of those is printing more paper money. The paper dollar had much more purchasing power a century ago compared to what it will buy you today. This makes paper money inflationary.
Cryptocurrency tends toward being deflationary, meaning that its value increases over time rather than decreases. This makes currency like Bitcoin a greater store of value. Several factors play into making something a store of value, which is a currency or other asset that keeps its value over time.
Scarcity: When there is less of something, it is inevitably worth more. This also applies to currency. When governments print more paper money, it becomes more abundant but is worth less. Bitcoin is made up of a fixed supply of 21 million coins, so its value does not become diluted.
Acceptability: Money only has value if accepted in exchange for those items that we want or need, whether that be food, shelter, clothing, etc. When more people accept the viability of a currency, the more value it holds.
Durability: Gold is the ultimate store of value. Any store of value should keep its value over long periods. As distributed digital information, Bitcoin is one of the most durable forms of money. Since the blockchain replicates on thousands of computers worldwide, destroying a Bitcoin would require destroying every computer that has that Bitcoin saved on its hard drive. This makes Bitcoin virtually indestructible for hackers or other attacks, making it a very durable currency.
Liquidity: The asset must be easily moved, purchased, and traded. Again, the more people who participate in transactions, the stronger the market and the greater the value.
Divisibility: Each bitcoin is divisible into 100 million satoshis. Because it is easily divisible, it does not have to be sold as a whole.A single bitcoin might be worth thousands of U.S. dollars, while a satoshi is worth fractions of a penny. This allows people to make extremely small transactions, or microtransactions, giving much more flexibility to its usage compared to traditional currency.
Portability: If you think about transporting gold overseas, you have to consider the weight of the gold and the quantity, as well as the cost to ship it to its final destination. You can send a digital asset, such as Bitcoin, to another continent in minutes for a fraction of the cost of “transportation” fees.
If you have your password and an electronic device, you can take your Bitcoin with you everywhere you go. This means you can easily take it with you wherever you travel or send it wherever it needs to go.
10. Portfolio Diversification
Bitcoin offers another option with which to try to grow money outside of stocks, bonds, and ETFs. With the history of Bitcoin price thus far, its action seems to be unaffected by what stocks, bonds, and other commodities are doing. This makes it an excellent asset in terms of diversifying your portfolio.
Invest in Bitcoin Today
If you are looking to make some changes to your investment plan, there are certainly many benefits of investing in Bitcoin. With its ease in making trades, the excitement of investing, and the potential for decent returns, more people are turning to Bitcoin for investing in the future.
As information spreads regarding Bitcoin and its place in the marketplace, its popularity continues to grow. With ATMS popping up around town, investing and working with Bitcoin becomes easier.
Find more details here on how to take advantage of this investment opportunity and find a place for Bitcoin in your investment portfolio today.