Bitcoin, in recent years, has become a household name and
Bitcoin, in recent years, has become a household name and is probably the most widely accepted Cryptocurrency. You might have doubts about investing in bitcoins, you might need a guide to buy bitcoins or you may wonder why the price of bitcoins moves so much, but here are a few reasons why you should invest in them even in 2018.
1. Bitcoin is reliable and can scale
Most cryptocurrencies have had several reliability and security issues where experts have expressed concerns about the state of both, but Bitcoin has proven to be very reliable. The last outage that Bitcoin suffered was way back in 2013 when their blockchain was down for a few hours which was fixed in very few hours. It was fixed swiftly, and now for over five years, Bitcoin has been operational and reliable 24/7/365.
2. Constant price correction has brought it to a healthy valuation.
In 2017, Bitcoin prices reached an all-time high of about 19500 USD, before making an inevitable correction, and in recent months, their value has fallen by almost 70%. Currently, Bitcoin is going through a cycle of growth and fall, which in fact will provide the best buying opportunities.
The “Mayer Multiple” is an indicator that bases its results on the relation between the current price and a 200-day average price.
3. Bitcoin uses lightning network
One technological development that Bitcoin can claim is the lightning network which enables anyone to send bitcoins instantly with meagre fees, while simultaneously retaining the underlying ideology of bitcoin, meaning that no third party takes custody of your coins. Lightning networks, how does it works, what’s it all about are complex concepts indeed, but in layman terms, they enable you to swap different currencies which support lightning through the lightning network. In the lightning network, users create so-called payment channels and payments are routed through this network of channels. The Bitcoin as of now has 2700 nodes, 9000 channels with a total capacity of 63 BTC.
4. Most widely used
It was from 2017 that cryptocurrency started becoming a mainstream phenomenon, and Bitcoin is leading that movement. It is the oldest, most recognizable cryptocurrency that also ensures the most real usage amongst all cryptocurrencies. It thus provides the most advantages when they are to be used.
5. Securities will bring in institutional investors
As cryptocurrencies are becoming more accepted worldwide, more bitcoin-based securities and regulations are coming about up. This will surely encourage larger institutional investors to enter the market, thus also opening the gates for the masses.
6. The global economy is unstable
Weak national currencies are already a great source of demand for bitcoin as are political restrictions set to stop people from taking their money outside a country. Due to these issues, people want to exchange increasing amounts of traditional currency into bitcoin.
The worse the traditional economy gets, the better it is for bitcoin. This is why it makes sense for anyone to diversify a portion of their investment portfolio or savings budget into bitcoin.
7. A limited amount of bitcoin is left
Bitcoin is a valuable asset because there’s only 21 million of them that will ever come into the world, and 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 limitation will raise the demand and the prices will be high, if there is a scarcity, especially if central banks start to buying them as foreign currency reserves.
8. No authority can devalue it
Like 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, which transcends national borders.
9. Censorship-resistant currency is the future
Though cash and digital payments are vital payment methods, they leave a lot to be desired when it comes to ensuring privacy, Bitcoin, which is now getting more improvements in the privacy department, will have protocol upgrades like Schnorr signatures that will improve privacy. Moreover, the use of lightning network is generally considered to be more private.
10. It is an excellent time to buy Bitcoins
The question that is the most plaguing is if we are in a prolonged bear market, or if this is a pause between two heavy bullish growth periods, as is what happened in 2013. 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.
In spite of the bear market, this is an excellent time to buy bitcoins as they are well below the all-time historical high.
Conclusion
Though you may be wondering about the best cryptocurrencies to invest in, Bitcoins have always been a force to reckon with and the bitcoin price history will tell you how it always manages to bounce right back. that being said, The bear market might just be the golden opportunity to buy bitcoin.