Although it has gone through challenging times, bitcoin has proven time and again that it has value. In the process, bitcoin also proved that it has a solid community that keeps backing it up.
At the same time, investors are starting to recognize its potential as a store of value. Ever since it penetrated that mainstream consciousness of investors, it appears that there’s no stopping bitcoin.
But don’t take our word for it. See the following factual reasons why you should invest in bitcoins.
Bitcoin has Permanent Rules
Bitcoin follows rules that are permanent. The greatest example of this is that bitcoin will never abound to more than 21 million coins. That is its supply cap.
This rule is public, which means anyone can check it if they want to, and they’ll see it will never change.
Compare that to world governments which can change the rule for monetary supply. They can print more money if they see the need.
Bitcoin has Limited Supply
Another reason why bitcoin has value and continues to appreciate is the same example we have given above.
As we’ve mentioned, bitcoin has a limited supply, which makes it scarce. As we all know, limited supply drives the price higher.
Compare that to the gold supply around the world. We all know that gold is a limited resource and one day we’ll exhaust the earth of this precious metal.
Interestingly, unlike bitcoin, we don’t know just how much more gold there is for the miners to mine. It’s also worth noting that bitcoin is considered to be the digital gold.
It has Transparency
Bitcoin runs on a decentralized system which is also quite very transparent. And the digital coin’s transparency puts it in a direct conflict with major central banks.
There is no way for the average joe to audit the central bank. It’s also very difficult to gain insight of the future monetary policy unless we do some deep analysis.
But bitcoin transactions and directions and histories can be checked and rechecked. The more interesting thing is that while it provides the much needed transparency in a financial system, it also provides security.
Bitcoin Cannot Be Censored
And because bitcoin is decentralized, there’s no way it can be censored. In 2017, China banned cryptocurrency exchanges and mining farms as well as ICOs (initial coin offerings), but the network is still very much alive.
Censorship and tight tracking by the governmental authorities put up challenges to the smooth flow of financial transactions. More importantly, it curtails the user’s freedom to gain and access assets the way he wants to.
Regulation is Becoming Better
Although cryptocurrencies still face a lot challenges today when it comes to regulation, it’s developing in the positive way.
Roughly a decade ago, regulation on bitcoin was virtually zilch. Even more so, some countries moved to ban the bitcoin and cryptocurrencies.
However, more and more companies as well as distinguished individuals and entities are becoming more accepting of cryptocurrencies.
Facebook has its Libra Association, its cryptocurrency gig, while many other companies and institutions are exploring the ways in which they can benefit from the developing digital currency space.
Bitcoin has a bright future.