Did you know that Bitcoin was first launched in 2009 and it is the world’s largest cryptocurrency by market capitalization to date? If you are looking to diversify your portfolio then investing in Bitcoin is a great way to do this. We have put together this short article to share the top reasons you want to invest in Bitcoin.
Keep reading to learn why it is a good idea to invest in bitcoin.
1. First to Market
One of the top reasons you want to invest in Bitcoin is because it has a first-to-market advantage. Most technology that is the first of its kind will always have the appeal of being the original. Think of companies such as Netflix that dominate the streaming services mainly because they were the first of their kind.
Bitcoin in a similar way will always stand out above the other cryptocurrency coins because it has been around the longest. With that said it is a smart idea to get familiar with bitcoin tax in your area to ensure you are following all of your local tax laws and regulations.
Since it is the first to market it is also the most trusted cryptocurrency. Even though there are other cryptocurrencies that are faster for processing payments Bitcoin has the largest market cap because more people trust it.
2. Future Monetary Systems
Another reason you want to consider investing in Bitcoin is that there are future monetary systems being built on Bitcoin. There are plenty of exchanges where you can buy Bitcoins or you can buy Bitcoins through your stockbroker by using ETFs.
If you want there is even the option to secure Bitcoin-backed loans from certain banks such as BlockFi.
3. Study the Billionaires
If there are billionaire investors such as Mark Cuban and Raoul Pal (a former hedge fund manager) investing in Bitcoin then this is a sign that they feel that it is worth investing in. Most billionaires will not invest their money in something they didn’t believe in.
4. Safe and Traceable
If your Bitcoin is stored in a private wallet (not a public exchange) then it is pretty safe. Having your digital currency stored in an external hard wallet will always be safer than storing it on an online hot wallet that is always connected to the internet.
Bitcoin is also traceable which means that you can track all of the transactions you make thanks to the public ledger but it is still in a way an anonymous transaction. Of course, just like with your local currency it is up to you to secure your information and your money to ensure you do not lose it.
Ready to Invest in Bitcoin?
We hope that now that you have our top reasons to invest in Bitcoin you are feeling more confident making a decision on whether you should invest your money or not.
If you enjoyed this blog post keep browsing our finance section for more tips and tricks.