Cryptocurrency has been soaring high in recent years, and Bitcoin, as the pioneering cryptocurrency, is always a center of attention. But you might think, why do you have to invest in bitcoin or any other cryptocurrency when other investment options are available too? What is behind all this frenzy about bitcoin investment?
Well, you will get your answers once you know the advantages of investing in bitcoin.
Are you one of the many aspirants wanting to invest in bitcoin? If your answer is Yes, read more to know why it is such a good idea.
Without further ado, let us get straight to the topic.
- Relatively low transaction cost
No one likes to pay transaction costs or at least wants them to get reduced to the minimum. By investing in bitcoin, you will have this advantage. The transaction cost of cryptocurrency is lower than other modes of financial transactions.
For instance, you are sometimes liable to pay $25 or $30 per transaction in a domestic wire transfer. The cost increases even more in the case of international transfer.
You might argue that the demand for crypto can increase the cost. But you must know that even then, the median transaction costs when dealing in cryptocurrency are lower than that of wire transfers.
- Easy to convert into your local currency
Another advantage is that converting bitcoin into your local currency is hassle-free. Whether in the US, Australia, Japan, China, or Indonesia, you can get money in your own currency within minutes. But make sure to check the currency performance chart before you convert.
For instance, check the BTC IDR chart before converting your bitcoins into Indonesian Rupiah (IDR).
Checking these charts is mandatory because the crypto market, including bitcoin, is extremely volatile. Therefore, there are huge chances of fluctuations at any minute.
Consulting the chart before conversion may result in receiving a better rate and profit from your transaction.
- More places are accepting bitcoins
One of the biggest advantages of bitcoin is that it transcends boundaries.
Due to its massive popularity among people and companies, more marketplaces accept cryptocurrency as a payment mode.
As a result, it is becoming an ideal currency to be used worldwide, whether for business purchases or personal shopping trips. Amazing, isn’t it?
- Safety from frauds
Bitcoin is powered by blockchain technology which bestows transparency to your transactions. Simultaneously, your transactions are safe from fraud too.
The money remains in your wallet, which is completely secure and private. It is only after someone gains access to the private key of your crypto wallet that they can reach your funds or carry out transactions. But it is almost impossible unless you share it yourself.
In case your crypto wallet address becomes public, you can generate a new wallet address to ensure the anonymity and safety of your transactions and funds.
- Maintains the privacy of your funds
Though you have an identifier on the blockchain system in the form of your wallet address, it does not include any of your personal information that can be traced back to you.
So, unlike the requirement of your personal information in the traditional bank, no personal information is required for investment in biotin, which eliminates the risk of data theft, as in the case of banks. This privacy benefits the users who never want to make their transactions public.
- No central authority governing it
Unlike many other financial systems, bitcoin is a decentralized currency, which means no centralized authority, bank, or government governs it.
No institution can threaten to freeze your funds or limit access to your crypto assets. What’s more, there is no viable way to apply taxation rules to your bitcoin investments either.
With no central authority, you have full control over your coins. Their price will also not fluctuate due to government policies. So, less tax burden and more control over money are viewed as promising features of investing in cryptocurrency.
- Potential to earn high returns
People are always attracted to investment options that promise a high rate of returns, for which they are often ready to take huge risks too.
A logical explanation is the adrenaline rush accompanied by the anticipation of earning big is a huge motivation. Bitcoin offers people this much-desired anticipation of earning huge profits. The best part is that it is not a bluff.
Bitcoin is a highly volatile currency. You will see fluctuations on a daily, weekly, and monthly basis. For instance, in March 2017, the rate of biotin was $957.66; come the following December, it soared to $20,089.
A few years later, the crypto investors made huge profits because its price increased to over $65000 in February 2021. So, crypto investors view this volatility as a plus point of bitcoin and invest to earn more.
There is also a possibility that the price of bitcoin will reach $500,000 in 2025.
- Protection against inflation
One of the pertinent reasons for investing in crypto, including biotin, is that many people see it as a viable option to protect them against inflation.
There is a hard cap on the total number of bitcoins that will be eventually floated in the market. So, the mining of the coins is strictly controlled.
As the bitcoin supply growth remains less than the growth of the money supply, the price of the former tends to increase. Numerous other cryptocurrencies follow the same rule of having a supply cap. Hence they can act as a hedge against inflation.
Bitcoin is coming forward as one of the most attractive investment opportunities in the twenty-first century.
In anticipation of gaining high returns, people are ready to take risks and expand and diversify their investment portfolios. Less inflation and no central control are some other attractive benefits of this currency.
Hope this article is of great help to you and gives you a gist of the important reasons and benefits of investing in the premier cryptocurrency – bitcoin.