The traditional asset class included bonds, real estate stocks, gold, oil, since and for a decade the digital currency has been aggregated with these assets, it gained too much momentum this year and was recognised as a full reserve asset, companies like Microstratdy and Bakkt invested in mainstream bitcoin. Now bitcoin has become a top recommendation from the investment gurus when you think about investments due to some of the main features that make it different from others.
Market independence
The main reason to buy BTC is its independence from other markets, even if the global market falls it remains intact, some think it is a general statement but it is almost true because bitcoin was born after the market crashed failing all kinds of traditional ones. Money and bursting the housing bubble, so it’s not a huge surprise, even in the past couple of months when all the stock markets have crashed and the strongest assets like oil tumbled, bitcoin is still climbing these tough days.
Because it is not controlled by any government or central system, unlike fiat currencies that can be frozen or confiscated by banks or the government, authorities can seize assets in different countries with or without warning, but in the case of bitcoin, no one and no government or countries can seize your money because they have no control or access to it, that is the main difference between bitcoin and other assets, to learn more about the bitcoin see beginners guide to cryptocurrency.
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Inflation and devaluation do not affect BTC
When we talk about inflation, everything is affected by inflation, like the things that you can buy now with your current salary, you cannot buy them next year or even after a month. If you are living in developing countries like Zimbabwe, Argentina, or Venezuela or others like them the response will not be much due to hyperinflation due to many factors such as wars, storms or pandemics.
There is also no devaluation in bitcoin value because it is not a centrally controlled currency, while other fiat currencies are government-controlled currencies such as the US dollar, the Pound, or the Euro, which is a global problem. The US has an inflation rate of more than 3% and in Eastern Europe, it exceeds the 4% per year that is established by the government authorities, having a finite nature. Bitcoin miners can only produce a certain amount of bitcoins since over time the mining process is getting more and more difficult, that makes it scarce and the process of value decreasing is very slow after each bitcoin halving the inflation rate drops to 1.9% which is less than any traditional fiat currency like the US dollar or gold.
Also see: 5 genuine ways to earn money with Bitcoin
Bitcoin spawns new businesses
In addition to other businesses, bitcoin is giving hyper-growth to the infrastructure around it, many large companies such as PayPal is linking with bitcoin on different products and services, major financial institutes such as Wells Fargo Wand and Bank of America are now have started to work on bitcoin and other cryptocurrencies and blockchain process to grow their business because it is the demand of time even now they are installing bitcoin ATMs in the different hotels and tourist places to attract more customers and traders to increase their business growth, undoubtedly BTC is a reason for the growth in different businesses related to it
Being an independent currency and not having control of anyone, it is controlled by its own creator, so the companies that are working with bitcoin have no fear of the authorities, so the universal bans did not affect it and the rules and regulations cannot go away. Until now, due to its finite nature, it works as a force of nature, it goes from person to person or business to business, so additional chargers have not to endure a transaction that increases the profits of the organisation or business and gives it economic freedom.
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Bitcoin has great store value
Having a very good store of value, it is also called digital gold because its nature is almost close to real gold, it is also compared with it because gold is a universal currency like BTC that is not under the control of any state or entity. Even if it is available in large quantity in the ground and underground, but its ming is very expensive and that is why it has a very limited supply compared to demand, it cannot detract from the value and it is not subject to inflation as fiduciary assets They make it a good store of value.
Despite the gold, bitcoin is easy to store and does not require any special place to store it and its transport is very easy in any amount and a bitcoin of the value of 0.1 BTC to 100 BTC can be stored in the same Bitcoin Wallet and can be accessed globally.
Photo by Aleksi Räisä on Unsplash
