6 Reasons to Invest in Bitcoin

-By Paul A. Philips

When investing it can be difficult to navigate the current minefield of elevated economic uncertainty. While portfolio diversification is a means of trying to mitigate risk, what do you choose specifically to invest in?

How about the inclusion of Bitcoin in your portfolio? After all, it is the most dominant of all peer-to-peer network operating cryptocurrencies and has become quite the investment focus.

Although there are risks associated with Bitcoin’s high volatility and speculative nature, which must be understood by potential investors, it has gained more and more acceptance in mainstream:

Institutional adoption continues to grow, viewing it as an alternative investment choice.

So here are 6 reasons to invest in Bitcoin.

Bitcoin Cannot be controlled by centralization

As with other cryptos, Bitcoin’s decentralized nature is the solution to avoiding untrustworthy, greed-driven, central banks and associated governments:

It is not sovereign, not controlled by any central bank or government. It’s free from the tyrannical control associated with centralization and regulation as in the case of the US government’s CBDC (Central bank Digital Currency). The same applies with any other country and its national digital currency, it escapes the government’s authoritarian style invasion of privacy…

-So, some would advise you not to give your freedom away by accepting the CBDC. Buy decentralized, country control free, tamper-proof Bitcoin instead and be independent.

“Ban CBDC’s NOW!” Congressman pushes total BAN on Central Bank Digital Currency | Redacted News

Scarcity – only a finite supply of Bitcoin will be made

-It is not like the US dollar where the continual printing of US dollars leads to dollar depreciation (buying power) and inflation (same in other countries with their currencies).

So far, there are about 19.3 million bitcoins in circulation. When the 21 million bitcoins supply is reached no more will be added. That means that this finite supply will grow in scarcity and will be expected to increase in price.

Consider the halving scheduled for some time between March 2024 – May 2024. This is when Bitcoin will be lowered to half its issuance. As it means more scarcity for this cryptocurrency, a subsequent price rise is anticipated. More on this later.

-In respect of this cryptocurrency’s scarcity and anticipated price rise:

a) Miners are keeping their mined Bitcoin rather than offering it to exchanges.

b) Crypto exchanges show their balances are at a 4-year all time low point. In other words, more Bitcoin is getting bought out of these exchanges than being returned by customers.

c) More investors than ever before continue to hold long-term.

Rising financial institutional adoption

In recent times we have seen a number of big banks such as Black Rock, JP Morgan and Fidelity giving more credibility; showing increasing interest in Bitcoin as an investment. Trillions have been invested by these financial whales who are giving their clients cryptocurrency-related services.

Following on from 3, more and more wealthy investors are choosing Bitcoin.

The deVere Group recently did research and was amazed to find that 82% of high net worth millionaire investors have pursued Bitcoin as an investment inclusion in their portfolio.

Resilience

Recently, the Federal Reserve published a report describing this cryptocurrency as an asset showing resistance to monetary and macroeconomic news.

In spite of all the fear, uncertainty and doubt through a number of setbacks, overall, bitcoin still continues to show resilience, making comebacks. For example, it has managed to recover from the FTX crash and related loses.

Anticipated bull run

Historically, in spite of huge price drops it later goes on to make significant all-time highs. Is another bull run due to happen soon?

As mentioned earlier the above chart reflects those all-time highs that followed after the 3 indicated halving events. Will we see this happening again after the next halving event? Many savvy investors seem to think so.

In Conclusion

Although it comes with risk elements such as price volatility and speculative nature, Bitcoin continues to gain more and more acceptance in mainstream; captivating investors interested in its potential for good returns. Historical indicators suggest it is due for a bull run. Then there’s the much-anticipated price increase following the next halving event.

As a number of crypto gurus have said: Continue to hold. Dollar cost average by buying a fixed amount of Bitcoin each month. Stay calm. Don’t panic sell. Hold, hold and… hold while continuing to accumulate. Have patience!

Further, more and more people are losing faith in banks. They are turning to investment alternatives: Like other cryptos, investment in Bitcoin is a means of financial independence. A way of taking a stand against untrustworthy governments and greed-driven banks who want to dictate, control or even steal your money through the introduction of their own digital currency…

Disclaimer

This article it not to be construed as financial advice. It is for entertaining/educational purposes only. Do your own due diligence and seek professional financial advice where needed.