Many who pay attention to the digital world are already investing in Bitcoin. Research has shown that there are over three hundred million investors with exposure to Bitcoin and the numbers keep rising. Many of these investors choose Bitcoin because they’re tired of relying on a centralized system and value their security and privacy. For other investors, however, they’re just there for the sake of profits.
What are some unpopular reasons why people invest in Bitcoin? This article addresses five of them. First, though, we briefly answer the question: What is Bitcoin?
Bitcoin is a digital currency running on top of a decentralized peer-to-peer network. The network was invented by its pseudonymous founder, Satoshi Nakamoto. Bitcoin was designed to serve as decentralized digital cash whereby people can transfer value without the interference of a middleman. Unlike most currencies, Bitcoin has a limited supply of 21 million coins, making it an attractive investment asset.
1. Join the Bitcoin Culture and Feel Among
A strong community has emerged around Bitcoin on social media platforms such as Twitter, Reddit, and even in mainstream finance. Some investors who choose to buy Bitcoin do so because they want to be a part of these communities and live by the culture.
The Bitcoin culture includes the use of slogans such as HODL, Wen Moon, and whale. There is also the culture of using profile pictures where the members wear laser eyes, indicating they’re cheering for Bitcoin to reach a $100k price.
Owning Bitcoin allows investors to feel like part of the community and support its core tenets. Bitcoin culture also includes introducing the cryptocurrency to other prospective investors and protecting them from investing in other cryptocurrencies.
2. Attract New Customers
Today, many organizations have begun to embrace the idea of accepting cryptocurrency as a payment in exchange for their product. With more people beginning to look at Bitcoin as a tactical alternative to fiat currency, they invest in Bitcoin or choose to accept it in other to attract a new category of customers.
Bitcoin is attractive for larger cross-border payments since fees are typically low compared to credit cards and other payment systems. Settlement is also relatively fast compared to legacy financial systems. Additionally, emergency systems such as the Bitcoin Lightning Network allow transactions to settle in literally seconds and for incredibly lower fees.
3. Bitcoin is the most reliable cryptocurrency
Although there are many cryptocurrencies, Bitcoin still stands out as the largest by market value and the most decentralized. The network has undeniably stood the test of time and has attracted many corporate and institutional investors.
In contrast, most cryptocurrencies are less decentralized and often implemented large-scale changes at the whims of a few developers or founders. The same cannot be done with Bitcoin as it has large community engagement and backing.
Many investors think that Bitcoin is expensive, while also admitting that it is more reliable. In reality, you don’t need to be very rich before you can invest in Bitcoin. Although Bitcoin costs almost $32,000 at the time of writing, you can buy some units for as low as $5 or $10 and just watch it grow. You don’t necessarily need to buy a full bitcoin worth $32,000.
4. Drive Financial Inclusion Globally
As noted earlier, Bitcoin is digital money and can be transferred globally without the help of a middleman. All transactions are recorded on the blockchain – a digital ledger that shows how bitcoins have been transferred over time.
Bitcoin drives financial inclusion since it is accessible to all who have access to the internet. Unlike legacy financial systems where users must provide several documents to own a bank account, you only need a mobile smartphone with an internet connection to start using bitcoin. Anyone that knows how to get a bitcoin address can securely receive payments from other people.
Hence Bitcoin has the potential to offer vast economic opportunities giving people the privilege to improve their living standards. This is especially true in areas where these people cannot easily access the financial system.
5. Make More Profit And Benefit In Future
So far, the main reason people invest in Bitcoin is to make profits. One way to do this is through short-term or day trading. Using this method, you can buy Bitcoin at a lower amount and sell it for a huge amount within a short time.
Most investors, however, take a long-term perspective and do not care about the latest crypto news. They buy and hold Bitcoin for years with an eye on making huge profits as the price grows significantly. Like most solid investment assets, bitcoin’s value keeps rising and falling in the short term. Over time, though, we have seen Bitcoin consistently rise.
There are many reasons why people invest in Bitcoin. This article considered some of the most unpopular reasons also contributing to Bitcoin’s growing popularity. If you choose to invest in Bitcoin, choosing the right reason will help you stay in it for the long term and reap any potential profits.