Are you wondering whether you should have Bitcoin in your financial portfolio? If yes, here’s why you should add this virtual currency.
Maybe you’ve been reading or hearing about Bitcoin a lot these days. Perhaps, this has prompted you to wonder whether you should have this virtual currency in your financial portfolio. Bitcoin attracts more investors and traders who want to own or profit from this digital currency. And this trend might continue as more entities start taking Bitcoin payments.
Ideally, the crypto market continues to grow as people learn about digital currencies, pros, and cons. Bitcoin transactions are fast and cheaper because they don’t involve intermediaries like financial service providers and banks. What’s more, Bitcoin’s value has increased over the years despite its wild price fluctuations.
While countries like China have banned this cryptocurrency, others like El Salvador have made it a legal tender. Thus, El Salvadorians can now use Bitcoin to pay for services and products alongside the U.S dollar. But some people are unsure whether to invest in Bitcoin. Here’s why Bitcoin should feature in your financial portfolio.
Bitcoin Won’t Go Anywhere
Some people argue that Bitcoin is dead. But this is a lie because the cryptocurrency is gaining increasing usage and adoption worldwide. Following El Salvador’s move to make Bitcoin a legal tender, platforms like BitIQ have noticed growing trading volumes. More people have started exchanging Bitcoin rapidly.
Bitcoin injected liquidity in El Salvador’s struggling economy, enabling it to flourish. Therefore, Bitcoin could be the last resort for a country facing deflation and inflation. Many nations have realized that regulating Bitcoin could affect their development. What’s more, banning Bitcoin could cause trade barriers in the future.
Bitcoin Trading and Investing Has Potentially Significant Returns
Bitcoin is, so far, the most successful virtual currency. Its price has continued to rise despite the ups and downs the digital currency has faced during its existence. A person that bought this digital currency in 2010 is now a millionaire. And this significant profit has captured the attention of many investors and traders.
Blockchain technology supports Bitcoin by creating a decentralized network with a public ledger for all transactions. What’s more, this technology prevents any entity, like the government, from interfering with its value. Thus, Bitcoin is immune from economic inflations or governmental influence.
People can trade Bitcoin on international platforms without paying taxes. What’s more, you can pay for a service or product with this cryptocurrency anytime, anywhere in the world. Today, the world has Bitcoin investments worth millions, and the trend is likely to continue. And people that invest in this virtual currency now will most likely reap massive returns once miners produce all possible tokens.
Nobody Can Fake or Destroy Bitcoin
Bitcoin is a virtual or electronic currency, meaning it is intangible. And this is among the primary characteristics differentiating Bitcoin from fiat money. Ideally, people don’t have to fear that somebody can duplicate or counterfeit this currency.
What’s more, nobody can destroy Bitcoin. Blockchain technology records every Bitcoin transaction, meaning you can quickly trace your crypto investment if anything unexpected happens. Additionally, people access their Bitcoins from any location as long as they have an internet connection. And you don’t require anybody’s authorization to access or transfer your funds.
Bitcoin has outperformed most assets over the years. This virtual currency represents an innovation that has changed how people perceive money and value. What’s more, its properties make it a better alternative to conventional money. Therefore, more individuals and organizations, including large companies, are increasing their Bitcoin investments. Perhaps, Bitcoin’s decentralization that makes it immune to the government’s manipulation is why more entities are including it in their financial portfolio. And anybody who believes in technology should consider adding this virtual asset into their investment portfolio.