Bitcoin has been around since 2009 and there are many who believe that it is a great investment. It is a decentralized currency that is based on blockchain technology. It rose in value to just under $20,000 in 2017 and then it dropped back down. It has gone up and down over the last few years, but in 2022, it has had a steady march upward. Recently, it almost hit $30,000 and there is no telling where it will go. Continue reading to learn six reasons to buy Bitcoin in 2022.
1. Bitcoin Helps to Diversify Your Investments
When you invest your money, most of it is tied up in safe investments that are lower risk. Your goal is to watch your savings grow over the years. However, you should always have a percentage that has the potential to grow at a faster rate. Throughout the years, there have been different hot investments that fit this category. In 2022, Bitcoin is something that people are looking at for this category. It has already had an incredible run and some people believe that it will continue to rise.
2. Conventional Institutions Are Starting to Validate Bitcoin
When Bitcoin first hit the scene, the conventional institutions were very sceptical. However, when everyone watched its rise in 2017, these institutions became interested. In 2022, the conventional institutions have approved trading. In fact, the Toronto Stock Exchange just approved trading of The Bitcoin Fund. This fund is worth $14 million, which is impressive on a major exchange. People believe that it is only a matter of time before this new asset class is adopted across the board.
3. Bitcoin Is a Digital Store of Value
Over the last twelve years, Bitcoin has shown itself to be a good place to store value. It is becoming more popular with people and it has a market cap of around $126 billion. It is blockchain technology and there is a finite number of blocks. Every time that 210,000 blocks are mined, the new supply is cut in half, which means that the value should continue to go up as the asset stabilizes.
4. Bitcoin Is Decentralized
Another reason to buy Bitcoin is that it is decentralized. Banks and brokerages are controlled by central authorities in terms of public policy and the way that money can change hands, as well as what its value is. With centralized currency, there are a few people at the top who have access to information on financial transactions. These are the same people who control the laws and determine what money is worth by manipulating its supply and demand. Bitcoin is decentralized and moves from peer to peer, so nobody can control it. Due to this reason, it is recommended to only use trustworthy and the best Crypto exchanges to buy and sell Bitcoin.
5. Bitcoin Can’t Be Duplicated or Confiscated
One concern with any monetary system is that people try to make counterfeit versions of it. There needs to be a system in place to prove that the money is original and not duplicated. Bitcoin is backed by the blockchain, which is a public ledger that is secured by a network of computers These computers make sure that Bitcoin transactions are valid. Bitcoin is protected because it is secured using private keys that are a string of characters that are protected by a 12- or 24-word passcode only known by the user. It makes the Bitcoin protected and safe. It can’t be confiscated by anyone, and it can’t be duplicated either.
6. Bitcoin Has Appreciated in Value
In its first year of existence, Bitcoin had a high value of around $9 per coin. It had an incredible run up to almost $20,000 per coin in 2017 before dropping back down. It has gone up and down but it has gone on another run in 2022. It almost hit $30,000 recently. While it may have high runs and then settle back in lower, over time, it has increased in value. Not only is it likely to continue to appreciate in value, but it has the potential to grow. Although anything can happen, Bitcoin has appreciated in value for the last 12 years. It may come down from its current value but once it settles down, it is likely to continue to appreciate.