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19 Aug 2021

Is it Worth Buying Bitcoin in 2021?

There are many reasons why investors have been attracted to Bitcoin, as well as other cryptocurrencies. While some buy it because they want to simply make a profit, others are more interested in being part of the next technological boom, which is expected soon once cryptocurrency payments are regulated. But, with all the volatility that’s surrounding Bitcoin in the recent months, many new investors are hesitant of whether or not Bitcoin is a wise investment at all. In the following lines, we are going to take a look at some of the factors that make Bitcoin a lucrative investment option for any beginner or experienced investor.

Its Ability to Bounce Back

First, let’s address the elephant in the room. Everyone who has invested in Bitcoin or has been watching the news knows that Bitcoin has had a volatile few months. We all witnessed how all it took was one tweet from a billionaire to send Bitcoin’s price soaring and another tweet to send it tumbling down. But, while this was taken as a sign by some investors who quickly sold out their Bitcoin assets, for others, it was the perfect opportunity to gauge the resilience of Bitcoin, and we know from its history that Bitcoin, unlike other cryptocurrencies, has the ability to bounce back even after a bearish market. This is the reason why Bitcoin has risen and fallen several times, only to rise up to where it is today. Since Bitcoin has already proved several times that it can rise again, that’s all the more reason for people to be confident in investing in Bitcoin.

High Yield Advantage

Many would agree that making your hard-earned money sit in the bank just doesn’t offer the best interest anymore. Considering the rate of inflation, it’s no longer realistic to expect high returns for your money that’s sitting in the bank. In fact, it would only lead to wealth erosion, which is the last thing that anybody would want. In comparison, investing in cryptocurrencies is considered a more viable option because of the high long-term returns. We have already seen Bitcoin’s price soar, and many other options such as Litecoin and Ethereum are following suit, which only goes to show that the popularity and trust in Bitcoin are rising, and along with it, is its value. This alone makes Bitcoin a solid option for higher long-term returns.

Solid Economics

For those of you who do not know, Bitcoin also offers solid economics. As in, its founders were quick to identify the issue that Bitcoin and, indeed, every other cryptocurrency would face eventually. This is why the creator of Bitcoin, Satoshi Nakamoto, created a cap for the total number of tokens, which is 21 million. This ensures that Bitcoin’s price will not drop in the future because there will be a time when there will be scarcity in the market once the last Bitcoin has been mined, which, in theory, will increase the demand, and along with it, the price of Bitcoin. In short, Bitcoin is going to be worth a lot more than its current price. Bitcoin is also not controlled by any government or central authority, so its supply can’t be manipulated.

24/7 Marketplace

When you invest in Bitcoin, you are entering a high liquidity market. This means that Bitcoin worth millions are changing hands constantly via exchanges. This is important since it means that the investment that you make is never locked up or restricted and can be traded, bought, or sold 24/7. For more on the latest developments in the world of Bitcoin and cryptocurrencies, try out the Bitcoin Era app. This is a great way to stay up to date on all things cryptocurrency.

 

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