If you have been on the sidelines, don't worry.. You are not the only one.
In fact, you are already ahead of the pack just by reading this article and have made the smart decision to ignore the mainstream media spreading fear and uncertainty in the cryptocurrency market.
Here are 3 reasons why you should buy at least 1 Bitcoin and become the 1% of the world population to own this revolutionary asset.
1. The Bitcoin 'Scarcity' Factor
For something to be valuable, it needs to be scarce which means it has a finite supply. Precious metals, antiques, minted coins and baseball cards are valuable because they are scarce. Digital objects, on the other hand, such as photos, movies and music are not scarce at all. There is an exception to this.
In the case of Bitcoin, it has a set cap of 21 million.
Approximately 17 million Bitcoins have been mined over the last 10 years since its existence. Reaching the 21 Million cap won’t occur until around the year 2140. This does NOT mean you have 121 years to buy Bitcoin.
Let's dive in a bit deeper.
Satoshi Nakamoto, the mysterious creator of Bitcoin, designed it so that the number of Bitcoin mined over time diminishes as the difficulty in mining increases. For the first 210,000 blocks mined, miners were rewarded with 50 newly created Bitcoins per block. In 2012, this number halved to 25 Bitcoins rewarded per block, and halved again to 12.5 Bitcoins in 2016.
The next 'halving' will occur in mid-2020. So what does that mean? Each halving produces increased scarcity as the number of Bitcoin's that can be mined diminishes.
Scarcity is an important principle when it comes to value and investing. With the next halving fast approaching, the demand for Bitcoin will increase.
But what differentiates Bitcoin from other assets with the 'scarcity factor' such as precious metals? It's utility as a payment system that we can expect to become widely adopted that will see higher higher demand (and value) for the non-fiat currency.
2. Increase in Bitcoin Adoption
Global adoption of this new asset class is on the rise despite the recent price correction. Bitcoin has the highest adoption rate as compared to the other cryptocurrencies, providing trust and credibility.
The adoption rate for Bitcoin is growing at an impressive rate. In 2013 there were 1,789 merchants accepting Bitcoin and then in December 2018 there were 14,346 venues globally accepting Bitcoin. This is a 700% rise – indicating that adoption is growing constantly and will continue to do so throughout the years.
More and more people want to use digital currencies for their everyday purchases. It will become easier as thousands of global organizations are beginning to allocate resources to research into blockchain technology to examine how it can positively impact their already successful businesses.
Some of the most popular companies in the world are now accepting Bitcoin payments such as Wikipedia, Microsoft and Expedia.
Then there’s Facebook. The online social media and social networking service giant revealed details about its new cryptocurrency codenamed Libra . This may come as a surprise considering Facebook banned all cryptocurrency related ads just over a year ago.. I wonder why?
Mainstream adoption by these major companies is a signal that blockchain is about to become massive. Similar to the dot com boom, the impact on our day-to-day lives will be significant.
This will endorse the trending opinion that Bitcoin (and other cryptocurrencies) are an integral part of a future global business. To own Bitcoin now before the mass adoption, is a smart decision.
Visit Coinmap to view a heat map of stores or ATMs near you accept Bitcoin across the globe.
3. Big Money is Yet to Come
Large institutional groups have entered the cryptocurrency race according to Bloomberg. It has been reported that large buyers such as hedge funds have been consistently purchasing over $100,000,000 worth of digital coins through private transactions.
The “Wait until institutional investors embrace crypto” has long been the rallying cry for digital-currency enthusiasts, however this will be too late for most investors.
For example, Goldman Sachs has become the first investment bank to offer a bitcoin trading product to its customers. So very likely this tendency will become a real trend in 2019.
Last year, Fidelity, Nasdaq, and the Intercontinental Exchange (ICE) announced plans to launch cryptocurrency trading offerings for institutional investors in 2019. Fidelity is one of the world’s largest asset managers with $2.6T in funds will launch crypto products.
Most significantly, ICE’s new venture “Bakkt” is expected to introduce more Wall Street firms to trading Bitcoin. The planned regulated asset trading platform will launch with Bitcoin derivatives and a cryptocurrency custody service. Furthermore, plans to roll out merchant payment services in the not so distant future.
Bakkt have also reached an equity deal with Starbucks which will allow Bitcoin to be used to purchase drinks at their stores.
Further to the introduction of financial regulations, the flood gates will open. Money will flow from a Trillion dollar market into Bitcoin that will surge its value to record all time highs.
Conclusion: Don't Miss Out On Buying Bitcoin
Hopefully, you now have a better reason to buy at least 1 Bitcoin. If you don't here are a few more reasons to buy BTC:
- The technology is revolutionary (obvious)
- There is a limited supply and prices are up in 2019
- Major companies continue to develop crypo payment systems
- The blockchain space is still young (i.e. pre-1999 dot com infancy)
If you unsure on where and how to buy Bitcoin or other cryptocurrencies, we have put together an easy to read guide on the best crypto exchanges in the world.
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