10 Reasons Why You Should Stick to Bitcoin Despite the Downtrend

Bitcoin
Bitcoin

The benefits of Bitcoin will overtake the problems of its tumultuous, volatile price conditions

When Bitcoin was launched, crypto was only meant to be an alternative to traditional forms of payment systems. It was supposed to be a radical transformation from the conventional banking infrastructure. But instead, Bitcoin became more than a basic cryptocurrency and is now experiencing mainstream adoption by major fashion and luxury brands. In fact, several countries like El Salvador are adopting Bitcoin as a legal form of transaction. But currently, the tumultuous condition of the BTC price demonstrates that it might have failed to live up to its promise. Crypto observers are carefully watching the market movements of Bitcoin and have come up with several conclusions. Some say that BTC was long overdue a price declination like this since it has been rising constantly for quite a bit of time. Whereas, sceptics say that this might actually be the end of Bitcoin as the crypto might fall below US$8,000 in the near future. But truth be told, the benefits of Bitcoin will overshadow its volatility. BTC is witnessing more adoption from luxury brands like Gucci and Balenciaga. In this article, we have enlisted the top reasons why Bitcoin might still prove to be a profitable investment in 2022.

Possess a High-Adoption Record

Currently, more than half of the BTC users are pulling away from their money from Bitcoin. But they probably only started investing in the past two years or so. According to reports, approximately 44% of the Bitcoin users have experienced favourable outcomes from BTC. The year 2021 and 2022 also witnessed massive growth in the adoption rate of Bitcoin. But the recent negative coverage by media publications derived from the currently volatile conditions of the market has made it impossible for investors to believe in BTC once again.

Effective Inflation Hedge

According to reports, the global economic and financial markets will soon experience massive inflation in the coming years. So, it is quite evident that people will start looking for effective hedges against inflation to protect their money and also store them as a valuable asset. After the rise of Bitcoin, crypto fanatics have started considering crypto as digital gold. Hence, it might become a power hedge against inflation.

Future Potential

Bitcoin has several users and more are joining every day, both institutional and individual investors. This is mainly one of the many reasons why it is quite well-accepted in the market. Hence, experts believe Bitcoin will continue to rise again once it comes out of its bearish slump. BTC fanatics believe that there will be a time when most individuals and businesses will use Bitcoin instead of using traditional or fiat currencies.

More Trustworthy than Other Cryptocurrencies

Bitcoin sparked a revolution since its inception. As mentioned previously, the crypto was only supposed to spark a revolution. But as more cryptocurrencies started emerging, BTC continued to gain more prominence and trust from other investors. Apart from the several advantages that BTC provides over other digital assets, crypto also offers several benefits over using fiat currencies.

Its Supply is Fixed at 21 million

Bitcoin’s supply is fixed. A limited number of 21 million coins are available as the total supply, and currently, around 18.9 million Bitcoins have been mined. This leaves only 3 million BTC tokens left to be mined which will make it even more difficult for investors to get their hands on the token, eventually making it pricier. Additionally, more than 30% of the BTC tokens have been lost already. So, analysts predict that BTC might eventually rise again!

Decentralized in Nature

Bitcoin is a decentralized currency, which means investors will be subjected to their own security, and theoretically, this will provide more autonomy and control over their money since the price is not linked to government policies. Since BTC demonstrates no influence from centralized governments, it certainly would not fluctuate based on national crises.

Bitcoin offers Low Transactional Fees for International Payments

Standard wire transfers and foreign purchases involve high exchange fees. But since transacting through BTC would involve no intermediary institutions or governments, the costs of exchange are generally lower as compared to those for bank transfers. This provides immense credibility and advantages to travellers.

Additional ETF Features

The year 2021 was immensely historic for Bitcoin as the year that introduced Bitcoin ETFs and that became an overnight success. Without ETFs, several large funds would be prevented from exposure to Bitcoin. According to reports, more than 70% of US investors have invested or are planning to invest in Bitcoin in the near future.

BTC Uses Lightning Network

One of the most important features of Bitcoin is that it deploys the Lightning Network, its prominence and importance became even more visible after El Salvador started using it in its Strike app. The Lightning Network is actually a solution to making Bitcoin’s blockchain more scalable and speedier.

Bitcoin is Secure

Bitcoin is a digital currency; hence, thieves cannot get their hands on it. But crypto scams are quite common in the market. But with proper security, it is possible for investors to keep their BTC investments safe and their addresses secure.

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