Bitcoin has become one of the great revolutions of the last ten years on the Internet. Its popularity was such that many small investors focused on the trendy cryptocurrency to place their capital, and it is also one of the main bets of the world’s leading investment houses.
In fact, despite being the first cryptocurrency to emerge, it remains the most followed and popular. Therefore, below We tell you why you should invest in Bitcoin in 2022.
Reasons why investing in Bitcoin is a good investment
Bitcoin is the best-known cryptocurrency of all, with the most users and the largest market capitalization. Beyond that, and given the sheer number of digital assets, you might be wondering why investing in Bitcoin might be a good idea.
The main reasons to invest in Bitcoin are its high appreciation potential, which makes it ideal for diversifying our investment portfolio and our exposure to cryptocurrencies. Additionally, Bitcoin is easy to buy and store, has low fees, and has properties that make it a unique financial asset.
Below we will analyze all these reasons in more detail.
Bitcoin rules are clearly defined
Since Satoshi Nakamoto wrote his famous article «A peer-to-peer electronic banking systemin 2008, the Bitcoin protocol, and therefore its rules, were set perfectly forever.
Bitcoin information is completely transparent: everyone knows the final number of bitcoins in circulation when mining is complete, 21 million; about once every four years there is a reduce by half or what He is time blocking it takes about 10 minutes.
These rules followed by Bitcoin are in contrast to the policies of governments and central banks in all parts of the world. Every day, these institutions print money using terms such as quantitative easing or keeping interest rates near zero.
Bitcoin does the exact opposite, being a finite and limited commodity.
A possible alternative to gold: Bitcoin’s store of value
We talked a lot about bitcoin as possible alternative to gold. Its monetary characteristics are similar to those of the precious metal, mainly due to its deflationary character and its constant properties as a store of value. In fact, the very word «mined» is a clear reference to gold.
Moreover, its operation is increasingly limited by current technology (just like the extraction of gold) and in any case we know that there will never be more than 21 million in circulation (gold is also limited by exploitable resources).
Because, Bitcoin is a kind of 21st century gold because of its properties and who knows if in the future it might even replace the precious metal as the main safe-haven asset in the world.
The commissions applied to the purchase and sale of bitcoins are among the lowest on the market, especially compared to other assets and traditional investment products. The Bitcoin protocol itself contributes to these low fees, based on a P2P principle and without intermediaries.
This reduces network maintenance costs and therefore also transfer fees. Unlike banking and electronic payment systems, users have the full ability to independently set the amount of the commission and even send transactions without it.
Moreover, the growing competition between Exchanges where to buy and sell bitcoin accentuated this fee reduction.
Less volatile than other cryptocurrencies
Despite the fact that every asset being monetized, like Bitcoin is today, is inherently volatile, the truth is that its price is much less volatile than other similar cryptocurrencies.
In addition, the portfolio management company VanEck He went on to say that Bitcoin was even less volatile than nearly half of the companies that make up the S&P 500 over a 90-day period.
More liquidity and security
Bitcoin is the second most liquid cryptocurrency in the market, just behind Tether. According to data from investment.com, the daily volume traded is $36.7 billion, compared to $24.25 billion for Ethereum. Moreover, it is the cryptocurrency with the largest market capitalization, with almost $700,000 million. To put this data into perspective, this market capitalization is higher than that of the entire IBEX-35.
Such a liquid asset stands for security, as this indicates that it can be converted with small losses due to changes in the price of the mentioned assets in the market. This is a fundamental consideration, especially in a market as volatile as cryptocurrency.
Adoption and institutional interest
Nobody remained indifferent to Bitcoin. Cryptocurrency has sparked equal parts interest and concern by different countries of the world. So much so that some countries like El Salvador have adopted Bitcoin as legal tender and everything indicates that they will not be the last.
Additionally, more and more businesses are accepting bitcoins as a means of payment and more and more transactions are being paid for using this cryptocurrency. And more and more ATMs are starting to generalize terminals accepting the exchange of crypto-currencies, especially Bitcoin.
It’s hard to walk around a big city without seeing the Bitcoin logo once or several times in different places, which gives an idea of democratization and its generalization within the population.
easy to start
Investing and using Bitcoin is easy and for everyone. You just need to follow three simple steps:
- buy a wallet where bitcoins are purchased and stored. It contains cryptographic key pairs, one public and one private. Most cryptocurrency wallets offer the option to buy bitcoins.
- Download the appusually from a mobile.
- start trading with other people who have virtual wallets.
Uncensorable and elusive
bitcoin is blockchain-based, a decentralized and incorruptible technology that gives confidence to the system. It is so secure that only the bitcoin owner can move that bitcoin to other accounts.
This means that unlike other assets, no one can confiscate bitcoins if a state needs them.
Categorical, Bitcoin continues to be a great investment option due to its particular cryptographic characteristics. And everything indicates that in 2022 it will continue to be the favorite of users to invest.