Why people cannot deny bitcoin’s best features?
Governments, financial institutions, and crypto skeptics have spread misinformation about Bitcoin. As soon as the price drops by 3%, the doomsayers begin to line up.
But Bitcoin is gaining market share, expanding popularity, and reaching new territories despite the haters, critics, and doom and gloom prophets.
Recently, the price fell from its all-time high of $64,000 to its current low of $33,000. For the skeptics, this is a chance to feel righteous and declare a momentary triumph; for the investors, it’s a chance to get a steal.
There is a problem impacting all forms of investment capital, from the US currency to gold to the stock market and bonds. Despite the 50% decrease, Bitcoin has a chance to achieve new highs in the not-too-distant future.
This upheaval is par for the course in a nascent asset class where volatility is still rather high. However, since its beginning, Bitcoin’s value has increased by an average of 200% annually.
Several arguments are presented here to support the claim that Bitcoin is unstoppable.
One, it’s used worldwide as a medium of exchange.
The Euro was first used in commerce in 2001. It was a thrilling experience for many. The German Mark, the French franc, and the Italian lira suddenly vanished and were replaced by completely new currencies.
Because of its excellent attributes, the dollar has become the de facto currency in many countries. This is problematic since these nations have little control over US monetary policy. Compared to pesos or Sudanese pounds, it’s an improvement, but it’s still not satisfactory.
The key is to avoid using fiat currencies like the US dollar or the Euro. Instead, use a cryptocurrency that is not controlled by any central authority and can not be depreciated or inflated at will.
This is what bitcoin aims to do. A worldwide, decentralized currency that will eventually replace the dollar.
An inflation-protecting investment
Gold has been used historically as an inflation hedge, but it is not without its drawbacks. Difficult to move about, acquire, verify, and lockdown.
When you invest in gold, you’ll need to keep it in custody, receive approval from a third party, have it rehypothecated, and risk having it seized by the government.
Somebody, thankfully, came up with a version 2.0 of gold.
Bitcoin has several desirable properties, including its transparency, fungibility, security, portability, and immutability.
It’s no surprise that capital is being reallocated. Investors of all stripes, including pension funds, governments, and individual citizens, are ditching gold in favor of bitcoin.
Demand exceeds supply, making this an investment with a lasting value despite occasional price swings.
Real inflation might approach 15% over the next few years due to all the money creation that is going on, making keeping cash exceedingly dangerous right now.
Thirdly, there is nothing more suitable available.
The surroundings aren’t exactly reassuring. The shameful decline of the dollar, the abrupt collapse of the stock market, the relative stability of gold, and the high volatility and low liquidity of the real estate market all point to a dire future for the dollar.
As of the right moment, Bitcoin is the safest option available. There is no way around paying it, even if prices don’t rise much over the next six months. As an investment, it is unparalleled, and I wish there were others for the sake of diversity.
Michael Saylor puts it well when he asks whether or not one should diversify into a sinking ship.
We’ve all witnessed the potential damage that Bitcoin’s revolutionary technology may do to established markets. The internet has already demonetized the travel, publishing, film, and music industries; bitcoin will do the same for the banking sector. Don’t put your money on a loser
Bitcoin is widely accepted, has a low inflation rate, is decentralized, and is simple to buy and store. The absence of rivals has contributed to its success. I would upgrade if an improved version were available.
The only chance for emerging nations
Currency devaluation is a problem in many countries, including Venezuela, Zimbabwe, Sudan, Argentina, and many more.
Imagine getting paid in Venezuelan Bolivars, which have lost half their value by the time you receive them.
For decades, this has been a major difficulty for expanding economies, but now there is a workaround. All those who depend on stable money to save, invest, and store value can breathe a sigh of relief knowing that a deflationary currency that cannot be seized, depreciated, or inflated into nothing exists.
As a result, Bitcoin has been accepted as legal money in El Salvador. It’s the ideal method to end manipulation, curb inflation, and bring stability. The algo affiliates is a trading bot helping a lot of traders to earn.
There will be a domino effect on many other nations. The governments of Panama, Paraguay, Uruguay, Brazil, and Argentina are all considering legalizing Bitcoin as legal tender. It has already become the de facto currency in certain countries, like Venezuela and Nigeria.
Strangely, such a wonderful and seemingly simple solution has taken so long to be implemented. Using Bitcoin as a replacement for the dollar or Euro, which does work to some extent, is one thing; doing so with the bolivar, the Sudanese pound, or the Argentine peso, on the other hand, is a no-brainer. It will undoubtedly be much more successful than previous attempts at monetary reform.
Five-two billion people don’t use banks since they don’t have accounts. If they are sufficiently isolated, they likely have no way to store money, use credit, or get their hands on cash.
And another 4 billion are “underbanked,” or without access to adequate financial services. Predatory lending, exorbitant fees, and subpar customer service are just some of the issues they have to contend with.
Easy to Handle
Nonetheless, that time is passed. With cryptocurrencies like Bitcoin, you can carry all the tools you need to manage your finances in your pocket. Coins may be bought, sold, borrowed, lent, traded, and staked in a decentralized and permissionless manner. With just a $50 phone, anyone can join this community.
This paves the way for billions to save, invest, and trade risk-free, permission-free, and low-cost. Suddenly, they are a part of the global financial system, giving them a chance to lift themselves out of abject poverty.
Buying groceries in El Salvador is already possible using bitcoin since the currency is accepted by most shops and restaurants there. People who use it aren’t necessarily technically savvy, but they need to realize that it’s a superior kind of currency.
Only 21 million Bitcoins were ever created, and it is thought that 7 million have been lost. That means we have just 14,000,000 to go around.
The availability of something is vanishingly small. There are more billionaires in the world (55 million) than bitcoins. Hence the price will skyrocket once these individuals start staking their claims.
There is no other direction for a rare and coveted asset like gold or Bitcoin to go up.
The dollar’s availability has caused it to lose nearly all of its worth. As more are printed, each new bill is worth less.
The days of the common person being able to afford a whole Bitcoin are numbered. When the value of one bitcoin becomes unmanageable, Satoshi, a fraction of a bitcoin, will become the standard unit.