Why buy Bitcoin? This is a question many people have been asking themselves since this relatively new form of currency began to hit the mainstream. However, many people don’t understand why they should invest in Bitcoin. Here are four good reasons why it’s worth to buy this virtual currency.
1. Their Prices Are More Stable Than Currency
In the last couple of years, Bitcoin has demonstrated unparalleled stability as a financial option. The stability has created and increased trust in this virtual currency. In fact, in the recent years, there have been times when Bitcoin has been more stable than gold, Japanese Yen, and even US stock index. The financial stability that has been totally unparalleled is a strong indicator that Bitcoin is increasingly growing as a virtual currency and is the next big thing in the financial market.
2. Instability Nature Of Global Economy
Despite the global economic situation being very unstable, Bitcoin value has remained relatively stable as it isn’t strongly correlated to neither the national currencies nor the stock market. Bitcoin may, in fact, be the biggest beneficiary if the traditional economy goes on to deepen which means that it can be a better and smarter option to diversify some investment into buying Bitcoins.
The worse the situation of the traditional economy gets, the better it is for the Bitcoin. So, why buy Bitcoin? How does the situation of traditional economy relate to Bitcoin? Well, Bitcoin currency is similar to gold, it can’t be created from nothing and is scarce. However, unlike physical currency, Bitcoins can be moved effortlessly to any economy in the world. The growth of Bitcoin system trading volume is high in countries such as Latin America, China, and South Africa. Due to the weak valuation of the local currencies, many people are opting to exchange part of the traditional currency into Bitcoin.
This is why it makes much sense for people to diversify their investment portfolio by buying Bitcoins.
3. Bitcoin Usage Is On The Rise Globally
The trading volumes of Bitcoin is increasing rapidly all over the word as more goods and services are bought using Bitcoin every day. In South America and South Africa, the growth volumes of Bitcoin usage are quite impressive. It is predicted that the usage of Bitcoin will continue to rise because of the stability the virtual currency is displaying at the moment.
The increasing use of Bitcoin all over the world is a strong indicator that it will only get better and bigger. Bitcoin is the first currency to be accepted universally and this reality is dawning each day.
4. Plans To Do Away With Cash Are Underway
At least in various parts of Europe, there seems to be an increasing debate to get rid of the physical cash. The trend is increasingly becoming popular in many developed countries where the rates of adopting digital payment methods are high. Even if, cash cannot be overly ignored, the perspective of adopting digital payment method to cover for most of the transactions leaves a lot to be desired.
Bitcoin is a digital cash and any attempts to reduce cash transaction will increase the demand for Bitcoin. The digital revolution of money is a good thing to Bitcoin as it serves as an alternative option that retains most of the features of cash. Therefore, Bitcoin might be the major beneficiary in this era of digital revolution.
THE BOTTOM LINE
We hope that the above four major points have answered the question; Why buy Bitcoin? Invest in Bitcoin for a better and stable investment.