In this article, I will describe some of the key reasons behind buying bitcoin. In a different article, we describe the benefits of using our Bitcoin ATMs as an alternative to other buying and selling methods. People around the world continue to speculate about the future of bitcoin and so we want to share our thoughts on the subject.
Just like the traditional US dollar, Bitcoin holds value relative to goods and services you can purchase with it. Bitcoin can be used around the world and its growing in popularity and demand every day. Bitcoin is a cryptocurrency that uses algorithms to process transactions and prevent unauthorized creations of itself. It’s impossible for anyone to break into its source code and manipulate its supply.
There are many cryptocurrencies, such as bitcoin cash (BCH) and litecoin (LTC). However, bitcoin (BTC) is the first modern cryptocurrency of its kind. Bitcoin was invented in 2008 by an unknown person or group of people under the alias Satoshi Nakamoto. Then it was released to the public as an open-source software in 2009. Even though, the technology behind bitcoin is complex, owning and using bitcoin is fairly simple. We like to tell people: you do not need to be an economist to use the US dollar, and therefore, you do not need to be a software engineer to use bitcoin.
Bitcoin and other cryptocurrencies are accepted by many investors as legitimate investments. Renowned analysts and experts around the world predict the price of one bitcoin to jump to one million dollars. The popularity of bitcoin as a mainstream investment and as an alternative to national currencies for payments, is on the rise. The owners of the New York Stock Exchange, in partnership with Microsoft and Starbucks, introduced a federally regulated bitcoin exchange market. This venture made investing in bitcoin even more mainstream and globally trusted. Millions of people can potentially continue to add cryptocurrency to their 401(k) portfolios.
Customers and businesses also realize the benefits of using bitcoin as an alternative to credit cards. There are now millions of goods and services that you can purchase with bitcoin. The security and utility of this digital currency can save both time and money. Payments and transfers are sent directly from one party to the other and without the need to go through a third-party financial institution. Companies are working on making credit cards that only use cryptocurrency and many merchants are on-board because they get to save on credit card fees.
Bitcoins are constantly being created by miners. This additional bitcoin supply is decreasing overtime at a calculated and predictable rate. The number of bitcoins created daily is halved every four years until it reaches the maximum number of bitcoins that can ever be created, a total 21 million bitcoins. This means that since there are far less than 21 million millionaires around the world, in the future not all millionaires can own an entire bitcoin on their own. This scarcity in supply and the increasing demand to use and invest in bitcoin could continue to drive up the price, especially if central banks buy bitcoin as a currency reserve.
To drive up demand for almost anything, it needs to have value. Bitcoin’s value is being realized more and more as a useful form of money. It has the characteristics of fiat money, without the need to rely on physical properties like gold and silver or the authorities like central banks and governments. Bitcoin only relies on mathematics, and math works. Math is not corrupt and you don’t need to trust it the way you need to trust people and financial institutions. Because of this and the many other reasons mentioned in this article, we think that bitcoin will continue to be adopted and its demand will continue to skyrocket.
When a country is at war or prints too much money, the value of bitcoin and gold remain unaffected, while the value of that country’s currency plummets. No federal reserve can devalue bitcoin. Some analysts predict that more people and businesses will buy bitcoin instead of gold. Gold is inconvenient because it requires space. Just like physical fiat money, transferring gold is timely and costly.
Gold requires storage space, guards, and a ton of fees attached to its logistics. Even Co-founder of Microsoft Bill Gates said “Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.” He also said “Bitcoin is exciting because it shows how cheap it can be,” referring of course to bitcoin’s cheap transaction fees.
You can literally store 100 million dollars worth of bitcoin in a single bitcoin wallet. Imagine how inconvenient it can be to store or transfer 100 million dollars worth of gold! Central banks around the world are realizing this and they are considering to buy bitcoin as a currency reserve, instead of gold. That can potentially increase the demand of bitcoin, and as I already mentioned, with its limited supply, that can bring the price of bitcoin into new unimaginable territory.
Bitcoin and other cryptocurrencies are decentralized and borderless. Payments and transfers are cheap and fast. You do not require a third-party to use bitcoin because it is not owned by private or government banks. Bitcoin can potentially protect customers from market inflation and bank failures. For instance, in 2018 Argentina’s national fiat currency lost 50 percent of its value against the U.S. dollar.
This economic crisis in South America made cryptocurrency in places like Argentina more popular, and as a result, it prompted private companies to increase the number of Bitcoin ATMs. The number of businesses and consumers that use cryptocurrency in Argentina is growing. This shows how when large institutions fail to protect and back their fiat currencies, people will rely on bitcoin because it is purely backed by mathematics.
Growth BTM members and millions of people and business owners around the world invest in bitcoin and other cryptocurrencies. We truly believe that it’s the future of money! We fully understand and want you to also understand that no investment is free of risk nor can it guarantee returns. It’s just preposterous to think that. On the other hand, one thing we do know for sure is that no one can ever stop bitcoin.
The fact that it is decentralized makes it impossible to shut down. To end bitcoin, someone will have to shut down the entire internet around the world, and that’s just not going to happen. That is another reason that makes bitcoin even more special.
We hope you found this article to be educational and useful. If you live in New Jersey and would like to buy and sell bitcoin, please visit one of our Bitcoin ATM locations.
iCoin Mart is the easiest and safest way to turn cash into Bitcoin.