There is too much news going around about investing in bitcoin enough to confuse any beginner. In the past few years, bitcoin’s price has jumped over 600%. So here are the Top 10 Reasons Why You Should Invest In Bitcoin.
To prevent a possible bank run
Banks serving a fractional reserve can expand credit by loaning out more money than they have as deposits. If there is an open market in banking and fractional reserve banking is allowed. It always offers a competitive advantage for a bank to run a fractional reserve. Other banks often have to follow suit to stay in business. Still, if their directors had expected to run a more reliable business as in full reserve banking. Reserve banks run into problems when their depositors figure out that their deposits are not safe because they’ve been lent out many times over.
Discrete depositors will quickly withdraw their deposits. Then raise an alarm prompting others to withdraw their respective deposits as a whole. The bank can’t pay all of its depositors and will be forced into bankruptcy. This is called a bank run. Central banks prevent bank runs by serving as the donor of last hope. It can borrow the money to pay depositors from the central bank thus avoiding the run. Bitcoin can be a way to store wealth outside of the traditional banking system. Therefore avoiding people to panic.
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Europe ordered it as a commodity exemption vat
The law of justice of the European Union has passed a rule. That the services of a bitcoin exchange in exchanging bitcoin for a traditional currency are exempt from vat based on the currency exemption. It is key to the economics of running a bitcoin exchange that sales taxes are minimized. Therefore a bitcoin exchange demands to transact with a notable number of non-businesses.
This decision makes Europe look like an attractive location to establish a bitcoin exchange. Attention will also need to be given to the predicted location of the counterparties. To reflect the best way to manage any irrecoverable vat costs resulting from supplies made to the bitcoin exchange. It gives a significant degree of certainty and should support virtual currency exchanges set up in Europe. It might make Europe a more competitive location for exchanges.
To be an early adopter of the powerful blockchain technology
The most powerful thing about bitcoins is not the bitcoin currency but the blockchain that they have behind them. Over the technological revolution, it embraces bitcoin as an ideological revolution. Bitcoin showed that a peer-to-peer payment method without any central control authority was possible on a large scale. A blockchain is just a confusing name for a shared database and it will have lots of large-scale applications. Bitcoin allows you to become one of the early users of this technology that can revolutionize the world. This is an important part of the list of Top 10 Reasons Why You Should Invest In Bitcoin.
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Most secure way to pay online
Bitcoin is the most reliable way to pay over the internet. In a normal transaction, you have to send your bank or credit card details to the vendor for them to process the transaction. This makes you vulnerable to hacking and other transaction manipulation. The only thing that is beamed when you purchase something is your public address.
So the transaction looks like this wallet x is sending one bitcoin to wallet y. There’s nothing that someone can do with that address unless they want to send money back to it. They would need your private key to get more money from your wallet. This is one of the important benefits of investing in Bitcoin.
More companies are creating tools for the bitcoin ecosystem
Blockchain is well known for underpinning cryptocurrencies. However, it has the potential to change various industries including healthcare, logistics, and supply chain, insurance, financial, and much more. Reputed businesses like Samsung and IBM are also embracing blockchain technology to offer innovative solutions and access to enterprises and startups.
Several blockchain development instruments have been launched to ease the method of blockchain app development. As more products are built and used in the bitcoin ecosystem. The adoption rate for bitcoins will increase and people are showing more interest in these cryptos. This means you can easily turn a few hundred dollars into a few thousand dollars with enough increase in demand. This is one of the significant reasons to invest in Bitcoin.
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It’s the largest cryptocurrency out there
Bitcoin continues to lead the pack of cryptocurrencies in terms of market capitalization, user base, and popularity by being the first in this segment that it has created itself. Bitcoin certainly has a notable advantage over its rivals. For the last 11 years, this interest has never diminished. On the other hand, bitcoin has continued to widen the gap over its competitors. Increasingly users are coming on board. Bitcoin is steadily seeing much more new money getting in than its contenders. It only reinforces its dominance in the market which has risen to over 65% in 2019.
Towards the end of 2020 bitcoin experienced another sudden rise in worth per single coin. By then, the record was nearly twenty thousand dollars which happened in December of 2017. For the better part of 2020, the leading crypto kept a rather favorable and steady value of between eleven thousand and thirteen thousand dollars. However, starting from November of 2020 it started to rise slowly and ended the year with a worth of 28,990$. Right now one coin is worth more than 58000$.
Lesser fees than other traditional online payments
Users can control how they spend their money without the interaction of an intermediary power like a bank or government. Bitcoin users may not need to pay the transactional fee which was there in an earlier system. This means no account maintenance, or minimum balance fees, no overdraft charges, and no return deposit fees among many others.
Also, standard wire transfers and foreign purchases typically involve fees and exchange costs. Because bitcoin activities have no intermediary institutions or government associations the costs of transacting are kept very low. It can be a major benefit for tourists. Additionally, any transfer in bitcoins happens very fast.
Bitcoins are independent of any central authority
With the introduction of bitcoin, the world got evidence that a decentralized control structure could work in practice for institutional governance. The shortage of central counterparties and supervisory powers in the bitcoin system is viewed as a key benefit by many of bitcoin’s users. There are many ways that payment systems work to minimize the problems created by divergent goals such as these. Separating some of the powers of the essential authority into interdependent parts is one common solution. The decentralized cryptos will have the open-source licenses.
By contrast with the central decision-maker, the software can be changed or even removed on the whim of this decision-maker with little recourse on the part of the software’s users. Even the decision to discontinue bitcoin if it happens will only occur when so many participants decided not to accept bitcoin that no one will use it as a medium of exchange.
Its value will rise significantly
While bitcoin is great for storing value. Countless practical bitcoin uses tend to get overlooked. You can live your entire life on crypto this keeps increasing the value of it. Many people live their entire lives using bitcoin debit cards. It will quickly allow you to fund your debit card in bitcoin. At the time of transaction behind the scenes, we’ll convert your BTC to USD.
Countless services allow you to convert your BTC to gift cards for thousands of stores including the app store, Lowe’s, Target, Uber, Walmart, Dominoes, and several others. Gambling is another scenario for bitcoin. Apart from this bitcoin is cheap to send especially while crossing borders. Depending on network congestion and the amount of the transaction bitcoin fees can be as low as pennies on the dollar.
Visit the official website of BitPay
It is pre-defined in its source code that it must have a limited and finite supply. For this reason, only 21 million bitcoins will be ever produced. On average these bitcoins are introduced to the bitcoin supply at a fixed rate of one block every 10 minutes.
Therefore can maintain buying power in real terms. Also, they can avoid the risks of devaluation brought about by profligate governments. They can also give stability and clarity in politically volatile situations. Critics point out that while bitcoin may have a finite supply of units which is 21 million as of now. The amount of cryptocurrencies is ever-growing and potentially limitless. These are the Top 10 Reasons Why You Should Invest In Bitcoin.
Keep in mind that the risk is you could lose everything, so you only invest what you can manage to lose. Whether that can be around 1% of your portfolio or perhaps maybe more but play this investment smartly. Nonetheless at the end of the day bitcoin is superior to the money that we’re currently using.
So it may not be the dumbest idea to have some investment in it, your future self might thank you for it and this article Top 10 Reasons Why You Should Invest In Bitcoin will surely give ideas for a safe investment.