Bitcoin was the first cryptocurrency to be created in the world. It is powered by the blockchain technology. It is a virtual currency that can be used for the purchase of goods and services.
Bitcoin has numerous values which we shall enumerate in this article. The following are the merits of bitcoin and why you should invest in it.
1. Bitcoin has a lower risk of inflation:
Every currency in the world is subject to inflation. Most of these currencies are controlled by the government, and government policies can influence the currencies. Countries like Zimbabwe, Germany, and others have faced high inflation due to war, bad economic policies, and other things. Anytime a currency loses value, the purchasing power of that currency is reduced, and people will have to pay a lot of the currency to buy goods and services. Bitcoin, on the other hand, as a monetary policy that is dictated by code and has been set up so that it has a low inflation rate due to the slowing down in the creation of new bitcoin over time. So, there is no danger of too much currency being in circulation.
2. Bitcoin is transparent:
Bitcoin makes use of the blockchain technology. The blockchain is a public ledger that is publicly available to all. All transactions can be viewed and confirmed on the blockchain. The address and amount of cryptocurrency sent can be viewed. This makes bitcoin transparent and more open. But even with the transparency of the blockchain, there is no possibility of identity theft as real names are not used.
3. Bitcoin is decentralized:
There is no central data hub for bitcoin. There is nothing like a massive or central data hub. All transactions have their own proof of validity and their own authorization protocol for processing of the transactions. The blockchain data is broken into several pieces around the world so, this data can’t be hacked or compromised due to its decentralization.
4. You can potentially make a lot of money with bitcoin:
From less than a dollar to one bitcoin, the value of bitcoin grew to about $20,000 in December 2017. Ethereum and other cryptocurrencies also saw their values increase tremendously in that period. If you invest in bitcoin, you can potentially reap a lot of returns on your investment. A lot of investors have even predicted that the value of bitcoin could be as high as $100,000 at some point in the future. More and more people are using bitcoin now. More companies are accepting it. So, bitcoin is becoming mainstream. And most of all, this is happening all around the world. People buy bitcoin in Nigeria to be able to send money abroad, people buy bitcoin in Zimbabwe as a store of value, and people buy bitcoin in South Korea to benefit from its potential increase in value.
5. Better technology to support Bitcoin:
As the popularity of bitcoin increases, more technology is being created to support bitcoin and make it better. The Lightning network, for example, part of this inventions. All these will make bitcoin transactions faster, reduce transaction wait times and improve the blockchain technology that powers bitcoin.
Conclusion
As the acceptability of bitcoin increases and it becomes more mainstream, the merits of bitcoin will increase. The technology to support it is also increasing. More miners are going into bitcoin mining to mine coins. Bitcoin is portable, and you can carry around millions and even billions worth of it around without anyone knowing.
A lot of startups around the world are now being powered by bitcoin. We are barely touching the surface of what bitcoin will be used for. There is a lot of positives to be gained. bitcoin is the future and the best time to invest in the future is now. Investing in bitcoin now will be a wise decision.