Although Bitcoin, the popular decentralized digital currency, has been around since 2009, the growing interest to invest and hold it comes at a time when blockchain technology is at the forefront, and more people are making the switch from Web 2.0 to Web 3.0. As a result, many companies, governments, and investors are currently purchasing Bitcoin and holding it instead of doing that with fiat currencies. While the value fluctuates, it’s not uncommon for the digital currency to go through periods of substantial growth because it’s decentralized and is therefore controlled via a peer-to-peer network instead of the government or traditional banking institutions.
What Makes Bitcoin So Valuable?
It’s the kind of question that many people want to know. So, what is it about Bitcoin that makes it incredibly valuable and worth investing in throughout the year? It’s real money, but it’s also the kind of money that is easy for anyone to invest in and use to complete transactions. In addition, it’s versatile, easy to transfer, and fluctuates in value like precious metals do. You could potentially invest in it while the price for the digital currency is low and then sell it when the price is significantly higher, thus earning from these different transactions. Alternatively, some investors prefer to hold Bitcoin long-term instead of buying and selling as the value of owning and holding Bitcoin continues to increase overtime.
No Loss of Value Despite Inflation
You’ve probably noticed that the United States is dealing with the most considerable inflation period. The price for everything is rising, such as gas, groceries, toilet paper, and other basic essentials. While the dollar continues to lose its value due to inflation, that doesn’t happen with Bitcoin, which is another reason different businesses and organizations are investing in it. Because there is no central control over the digital currency and a limited supply, government agencies can’t reduce its value. Therefore, as the traditional dollar becomes less valuable because of inflation, Bitcoin can continue to increase in value, making it a more reliable investment with a lower risk.
Additional Advantages of Bitcoin
There are several other advantages of Bitcoin that make it worth the investment. Not only is it quickly becoming the world’s most scarce asset, but it’s also widely accepted in areas across the globe, much like gold. In addition, many prefer paying with digital currency because it’s fast, easy, and stress-free with minimal fees compared to traditional banking. Finally, while it saves consumers money in the long run, it also works in favor of businesses, allowing them to save money on transaction fees and decrease fraud and scam risk.
Although Bitcoin is 13 years old, many still don’t know much about how it works and the value of investing in it. The inflation-proof currency will continue to become more scarce as a growing number of people gain interest in it, making it an excellent time to begin investing. If you haven’t already purchased Bitcoin, now is the time. Bitcoin has huge potential to be a more straightforward way to make your money work for you, especially during times of inflation.