“So you still haven’t invested in Bitcoin? What’s wrong with you?”
You might have heard such similar statements from Bitcoin enthusiasts. Ever since Bitcoin skyrocketed during the global economic crisis of 2020, more people have decided to accumulate as much Bitcoin as possible.
But is investing in Bitcoin still worth it? Is Bitcoin a trend that’ll fade away or is it a valuable asset for the future?
Here’s our case for investing in Bitcoin:
1. A Hedge Against Inflation
Most people see buying Bitcoin and investing in cryptocurrency as a means to build wealth in the fiat system. While this is an advantage of buying Bitcoin, a lesser-known benefit of owning Bitcoin is that it’s a store of value.
Fiat currency refers to the money issued by your country’s central bank. This is the legal tender that your country uses. While such currencies were once backed by the country’s gold reserves, central banks can now print fiat currency without any restraint.
For example, in 2020 alone, 40% of all U.S. Dollars in history were printed! This means that the U.S. Dollar has lost much of its purchasing power. The Euro, the Pound Sterling, and all other fiat currencies have also done the same.
At worst, your country’s fiat currency could become hyper-inflated as in the case of the Zimbabwean Dollar and the Venezuelan Bolívar.
While gold remains the traditional method of preserving your wealth in times of inflation, Bitcoin is a great alternative. The supply of Bitcoin can’t exceed 21 Million coins. As such, this preserves the value of Bitcoin and prevents it from inflating!
It’s also worth mentioning that the national fiat currency can also change. The central bank and the government can decide that certain notes are no longer legal tender.
Or they can decide to adopt a new fiat currency altogether. In such a scenario, if you don’t convert your old fiat currency in time — it becomes worthless!
2. Greater Acceptance Among Retailers
Another great reason to begin buying Bitcoin is that it’s becoming more popular among retailers.
While online retailers were quick to accept Bitcoin as a form of payment, physical retailers were more cautious. While it’s still relatively rare to find a physical retailer that accepts Bitcoin, this is expected to change soon.
Many Bitcoin ATMs such as those issued from bytefederal.com/ are available in a variety of physical retailers. These include supermarkets, pharmacies, and even shopping malls!
This might help you when you need money for a purchase. What if you don’t have $100 in your wallet but you have the equivalent amount in Bitcoin?
You can use Bitcoin as an alternative which makes it easier to purchase your goods and services. This freedom alone is a great way to increase your purchasing power.
3. A Great Way to Accumulate Fiat Currency or Precious Metals
Now let’s get back to the main reason why people like Bitcoin investments. Bitcoin is a great asset if you still wish to accumulate a lot of fiat currency.
Within the fourth quarter of 2021, the price of Bitcoin has fluctuated between $60K to $66K! Imagine if you had bought 10 Bitcoins back in 2010 when each Bitcoin was only worth $10 each?
While the current high prices have put many potential investors off, there’s still the likelihood of the price of Bitcoin rising in the coming years. You might find it expensive today, but you might reap the rewards within a few years.
You can also use Bitcoin as a means to buy precious metals. As mentioned earlier, gold and other precious metals have been used as a hedge against inflation. Many precious metals dealers accept Bitcoin as a form of payment to buy bullion.
If you’ve considered stacking up on gold or silver bullion, you might want to accumulate Bitcoin first. It might be the best currency to buy precious metals in the future.
One of the biggest advantages of investing in cryptocurrency is the financial privacy that it brings.
When you conduct a transaction using Bitcoin, it gets recorded on a ledger stored into a blockchain. However, this ledger only shows the Public Addresses of the Sender and the Recipient.
Financial privacy has been reduced greatly in the digital age. In recent times we’ve seen leaks on offshore wealth such as in the Pandora Papers or the Panama Papers. Wealthy investors such as Warren Buffet have had their tax returns leaked.
In much of the world, particularly the Western World, there’s an increasing animosity and disdain for the wealthy. This cultural attitude has been reflected in policies that violate financial privacy.
The less financial privacy you have, the greater the chance of wealth confiscation through high levels of taxation is!
While these policies are branded as going after the “ultra-wealthy,” they affect all persons — regardless of their wealth.
For example, income tax was introduced in the United States in 1913 and was originally only targeted to the wealthiest 3% of Americans. Over a century later, almost all Americans are subject to an income tax!
The only method to protect your wealth is to use a currency that can’t get tracked easily. Buying Bitcoin is a great option for doing this.
Just as you might want to hold cash or precious metals outside of the banking system, you might consider buying Bitcoin as well.
However, this doesn’t give you a license to “hide” your Bitcoin. If your country requires you to report your Bitcoin you must do so!
Even if you are required to do so, you’ll have the peace of mind that you’ve got a stable currency that can challenge the devaluing of your fiat currency!
Start Investing in Bitcoin
So, are you ready to start investing in Bitcoin? Please share this guide with any other skeptics whom you might know!
The value of Bitcoin is that it’s a stable form of currency that works as a hedge against inflation. If you’re worried about the devaluation of your fiat currency, Bitcoin is a great alternative.
You can also use it as a means to invest in physical and digital assets. You can also expect to use Bitcoin to buy everyday goods at physical retailers.
You can find more great guides on investing in cryptocurrency on our website!