Why You Should Invest in Bitcoin that Doesn't Have Government Backing
Bitcoin after its creation had many bullish and bearish seasons but, didn't see a major traction from the public until 2017 where it was a thing even in underdeveloped countries. It had a bear season in 2018 and every government body and centralized financial body including the central bank of so many countries said it wasn't a good idea to invest in a digital asset which didn't have a backing of the government or a commodity (you know that fiat you spend has the government backing, and that gold and oil you invest in has its real commodity). These people said investing in cryptocurrency was just creating another Tulip Mania, or better still and more understandable, another Dotcom bubble. Well, I would have loved to agree with them, but a lot of companies survived the Dotcom bubble and this is completely different.
In 2009, Satoshi published a 9-page solution to the financial problem as well as the enabling an innovation to computing problems. While a lot of government do not want to understand this, they assume that it is not worth investing in since it is the idea of a person they cannot hold responsible for his creation (but who held Charles Dow and Edward Jones for the market crash when people lost their money, or when whales manipulated the market?). Unlike Gold which is still being found in so many places in Africa where no one thought gold could exist in the past, Bitcoin wouldn't appear from anywhere after its 21 million BTC has been mined in the year 2140. The fact is so many people reading this post as at the time of writing it wouldn't be alive to see the last Bitcoin being mined, but its governance is trusted compared to how the government has been governing and handling finance and economy. Unlike the government that prints money on a daily basis, Bitcoin quantity of mining, halves every four years.
Bitcoin is monetary goods, Monetary gold, and Monetary commodity unlike shares and stocks. The price of Bitcoin is determined by the market, by the investors, traders, and not the government or a particular company. While Bitcoin stands as a monetary good, it still stands as a monetary collectible. Over the years, humans have loved to keep scarce commodities as a store of value, and this is just the same thing with Bitcoin. Its scarcity, associated with the demand for it and the available supply, determines its value. With this, it is visible that this monetary commodity can serve as a store of wealth as well. You might also want to ask why not invest in gold instead of Bitcoin. You see, every attribute that makes gold a store of value, makes Bitcoin a store of value. Bitcoin is fungible, Divisible, Durable, Portable, Scarce, Censorship resistant, and Verifiable.
While you might not know, Bitcoin has displayed monetary premium just like gold and other monetary goods, it has also shown to have a well organized chart and date when it will not be available for mining. When it comes to its volatility, over time, Bitcoin would become less volatile with large investors willing to invest and more liquidity in the market.
Posted Using LeoFinance Beta
