Six Reasons That Show Bitcoin Is the Future
What is bitcoin? Clearing through the hype, it is a digital asset that can be bought, earned, traded, and spent. It lives on the internet and is controlled by its community of users. While crypto is still associated with the money of criminals and do-nothings, bitcoin investment has proved to be particularly effective during a pandemic. As a matter of fact, its price in November 2020 increased by 150% compared to January. The high volatility, in turn, goes on drawing ever-increasing attention from large investors.
So, keeping all this in mind, let’s aim to answer this simple question: why should people invest in bitcoin in 2021? This article will walk you through some powerful reasons. With that said, let’s jump right into it.
Bitcoin Already Works, No Government Needed
The sixth-largest currency in the world has been often compared to the dollar under pandemic conditions. Which one is better? Judge for yourself: the idea of bitcoin is to allow money to change hands without the involvement of a central bank. However, the same cannot be said about America’s currency.
To combat the economic impact of the global financial crisis, the US authorities turned to a policy of quantitative easing. The central banks continue to pump money into the world. We are being flooded by trillions of dollars. Sorry to destroy your view of the world but it isn’t a cure, it’s just pain relief. Such a snowball system can’t effectively run in the long term.
The political situation in the world and dependence on the US in the international arena clearly tell us that bitcoin will inspire a lot of confidence among people in the future. The decentralized super organism has indisputable advantages in terms of the lack of a centralized financial mechanism, immune to inflation, and a limited supply. The latter has a positive effect on the price. These factors make it possible to call hashcash a more reliable store of value.
The grand takeaway here? Bitcoin is not a “bubble”, it is a measure of the collapse of fiat currency. Let’s move on.
Bitcoin Is Designed to Be Transparent
An asset class that frowns on regulatory oversight is completely transparent. This is probably the main difference from traditional money. Blockchain can be checked for proper functioning by anyone. If someone commits fraud, they are quickly stopped. As a result, corruption within the system and fake BTC are actually impossible.
The blockchain contains information about all conducted transactions. Owing to revolutionary technology, data is stored on the chain of blocks and contains all the details ever since the establishment of the system. There are public bitcoin addresses that are accessible to everyone. Visitors can find out how many coins are in the account of this address. However, the user’s personal details remain hidden. Only the account owner himself can tell that the address belongs to him. For maximum anonymity, you can use a new address for each coin transaction.
Anonymity
This feature goes hand in hand with the transparency of the system and guarantees the security of users. Each miner or participant has the ability to create an unlimited number of addresses. There is no binding to your name, personal data, geographical address, or place of residence. Tax offices or supervisory authorities cannot find out whom the funds in the account belong to. It also removes constraints specific to ordinary bank accounts. It’s the perfect opportunity for those who are afraid of giving out sensitive information over the Internet. This also applies to those who want to avoid “Big Brother” tracking their every move.
Stellar Reputation
Since its creation in 2009, BTC has been consistently touted as the eighth wonder of the world. A dizzying buffet of alternatives (Ethereum, Ripple, Monero, Litecoin, etc.) is keen to replicate the success of bitcoin. All of these assets are trying to use new tactics to enter the market and bring what users haven’t seen yet but probably need.
Even though the above coins are very promising, BTC remains the king of crypto. Well, that’s understandable, considering that it was the first cryptocurrency in the world. Among other merits, it is a high-yielding alternative asset class. Bitcoin is money for smart people. It is only risky to those who don’t understand it. At the same time, it is a revolutionary tool and it’s got a big future ahead of it. That’s what makes BTC stand out from the crowd. And this is just a drop in the bucket…
Zero or Extremely Low Fees
If you don’t believe in crypto, you live in the past. If you believe in crypto, you live in the future. One additional advantage of bitcoin is the lowest fees. The commission depends little on the transfer amount or the location of the sender and receiver match. As a rule of thumb, transactions are free. A commission is required only in case of large transactions that overload the network. Or with small sums to avoid spam attacking the network with a huge number of meaningless transactions. The monthly fee for service use is also absent.
Security
Cryptocurrencies are built on cryptography. They are not secured by people or by trust but by math. That’s why crypto platforms do not depend on the human factor. This can be considered an important benefit of digital gold in comparison to the classical banking system.
Decentralization guarantees the safety of any project. It won’t allow the State to prohibit or destroy the new exchange of values. The Secret Service will also not be able to get inside the system, so users can transfer money without fear for their security.
Final Words
At the extreme end, we would like to add that bitcoin isn’t going anywhere. The genie is already free. As much as you’d like to put it back in the bottle, there is no way to do it. Magic internet money is not a currency for the government, it’s a global currency for the people. By investing in it, you can become a part of the future currency revolution (if you believe).
