Bitcoin is changing the world, and any Bitcoin believer will rattle off a long list of reasons why cryptocurrency is the future of money. They’re right. Bitcoin is a global currency that addresses modern-day privacy concerns, elevates the unbanked, and shifts the economic power from big banks and governments back to the people.
On top of that, here are a few more concrete reasons as to why Bitcoin is the money of the future (and the future of money). Like they say about trees, the best time to plant one is 10 years ago and the second best time is today. The same advice could be applied to Bitcoin and why now is the second best time to buy it.
Here are 10 reasons why to buy Bitcoin in 2023
- It’s a new asset class. Asset classes, or areas of investment, have traditionally included stocks, bonds, and, more recently, entities such as real estate. Now cryptocurrency has been added to that list, with Bitcoin gaining momentum and recognition as a completely new asset class. With companies such as Bakkt bringing institutional investing in Bitcoin to the mainstream, it will likely show up in pension funds and on the recommendations of investment advisors in the near future. Bitcoin is also becoming increasingly attractive to corporations as a way to preserve their treasuries against inflation. Michael Saylor, CEO of business intelligence firm, Microstrategy, led by example by converting over \$1 billion of the company’s cash holdings into Bitcoin before hosting a widely-attended conference on “Bitcoin for Corporations”.
- It performs independently of other markets. When the stock market drops, Bitcoin remains unscathed. That may be a blanket statement, but it’s not an inaccurate one. Of course, that shouldn’t come as a huge surprise. After all, the very creation of Bitcoin came as a response to the stock market crash, the bursting of the real estate bubble, and an overall distrust in traditional money systems. But for today’s investors, that separation correlates to better risk management and a more diverse portfolio. With the recent WallStreetBets debacle revealing serious dysfunction and double standards in traditional markets, Bitcoin’s appeal to retail investors is enhanced.
- It’s not subject to the same inflation and devaluation as FIAT. What will your salary buy next year? Or even next week? If you live in Venezuela, Sudan, Argentina, or Zimbabwe, the answer is “not much” thanks to hyperinflation. But the devaluation of fiat currency (that is, government backed currency, such as the Euro or Yen) is a global problem. Countries in Eastern Europe have an inflation rate of over 3%, and even the United States has an inflation rate above the 2% target goal set by the US Federal Reserve. The finite nature of Bitcoin—only a certain number of coins can ever be issued—means the currency manages to avoid that problem. Add to that the fact that the Bitcoin reward for mining a block is halved every four years, and the rate of inflation actually decreases over time. When the next Bitcoin halving occurs around early 2024, the rate of inflation will drop from its current ~1.6% to roughly 0.8%. With rising prices seen in commodities such as building materials and semiconductors in 2021, the wisdom of Bitcoin’s capped supply is becoming clearer.
- It’s a great store of value. Is Bitcoin digital gold? We say it’s better. The cryptocurrency has often been compared to gold with good reason: it’s a universal currency that’s not controlled by any one government or entity; it’s difficult to mine; and it exists in a limited supply, which increases its value. And because, as we covered above, it’s not subject to the same inflation as fiat currency, it also doesn’t depreciate, making it an excellent store of value. What makes it better? Unlike gold, Bitcoin is digital. Whereas gold becomes cumbersome in large quantities, Bitcoin is easy to keep and transport in both small and large amounts. 0.25 BTC and 25 BTC can be stored in the same cryptocurrency wallet.
- It can’t be confiscated. In many countries, your fiat currency can be frozen by the bank or your assets can be seized by the government with little to no warning. Cryptocurrency is different. It’s not controlled by a central bank or government, which means that if you hold your Bitcoin wallet keys, only you have access to and control over your money, with no government intervention possible. This was demonstrated in Germany in early 2021, when authorities were unable to access 1,800 Bitcoin (worth over $60 million at the time) which they claim to have “seized” from a hacker.
- The infrastructure around it is in hyper-growth.Bitcoin is no longer just the dream of a group of economic anarchists. As the benefits of blockchain technology continue to prove themselves, companies such as Visa, Fidelity, and Square are finding ways to integrate Bitcoin solutions into their products. Even the big banks themselves, including global central banks and regional corporations such as Bank of America and Wells Fargo, are experimenting with blockchain, driving blockchain infrastructure into hyper-growth
- It’s called the Honey Badger of money for a reason. Bitcoin isn’t controlled by any one entity, making it impossible to control by compromising any one person, group, or company. Bitcoin is issued and maintained by an open network of peers, with no single entity at the helm. Due to its decentralized nature, government bans, regulations, and restrictions can’t effectively target Bitcoin itself but only associated companies and persons. This makes “banning Bitcoin” an exhausting and likely unwinnable game of Whack-a-Mole for authorities. This sets Bitcoin apart as a new financial paradigm which offers significantly greater economic freedom to many.
- It will make you question what you already know. (And that’s a good thing.) When was the last time you thought about where your money comes from or about who controls its value? If you’re like most of us, not recently. The existence of money in its current form is something we take for granted, whether we have a lot of it or not. But cryptocurrency upends our assumptions, showing us that governments don’t have to be in control of our funds, that money doesn’t have to be stored in banks, and that currency can be immune to hyperinflation and corruption.
- It will make you want to know more. Fiat currency is old news. And once our assumptions about how money works are turned over, we can’t help but be driven by a hunger for knowledge. Bitcoin will make you ask why we’ve been willing to settle for fiat until now. It will make you want to understand how the blockchain works, and why a financial revolution is necessary. And it’s important to know these things; after all, Bitcoin is the money of the future.
- It will most likely appreciate in value. The price fluctuations that Bitcoin has experienced in the last few years leaves many people saying that Bitcoin is too volatile to count on. But while price volatility has certainly led to dramatic spikes and drops, most notably in 2017-2018, Bitcoin’s overall arc has followed an undeniably upward trajectory. In other words, if you hold it long enough, the probability of appreciation in value is higher than any other asset class in the past 11 years. Furthermore, the higher Bitcoin’s price rises, the less volatile it’s likely to become, as the amount of money required to shift its price on a percentage basis increases accordingly.
Bitcoin was created as a way for people to reclaim their power over their own economies. Twelve years later, Bitcoin is not only giving people across the globe the ability to do just that, but it’s also proven to be a successful investment, one that’s worthy of its title as the future of money.
We hope this article has provided some solid answers to any questions about why to buy Bitcoin. If you’d like to do just that, Coinmama is one of the easiest ways to buy crypto with your bank account or credit card/debit card.