2021 – Bitcoin is back in the headlines. Going over $40,000 per coin doubling the previous high when it was all anyone would talk about in 2017 and it hit $19,000 per coin. Bitcoin is IN, BUY NOW, BUY NOW, wait. Why should you buy this made up thing? Is this a scam?
There are always going to be people skeptical of crypto currency. It’s fake
money! It a scheme! These are common arguments that don’t stand up to
any ground. The reason Bitcoin is so useful to own is because it can be transferred and utilized anywhere in the world without needing anyone’s approval. Sorry government, if I want to give my Great Aunt in Singapore some extra money. I’ll just send her some Bitcoin and avoid the fees, and headache.
So, why is Crypto or Bitcoin potentially important to invest your money into?
The first reason and possibly the most important is that there is a finite amount. That makes it like gold, except more scarce. This means that nobody, including any government can print more coins. This means that even though the value may not continue to skyrocket at hundreds of percent per year, even 20 pecent per year is beautiful, and that’s thanks to the scaricity 21 million no matter what. If tomorrow there was no more chocolate production, how much do you think a Hershey’s bar would cost in 10 years? The reason it is going up is due to the limited quantity as well as the demand.
There are lots of people that do not like the currency because it is not regulated by government. This leads them to believe that it’s a scam or it’s sketchy (as if governments are not sketchy). The fact it cannot be regulated is a primary reason it’s such a useful tool. You buy the currency and can do with it as you please with no intervention. You can send money to family across the world with no fees. You can retire in any country, if somebody sues you, it’s difficult for them to calculate your crypto net worth. It’s similar to owning gold, except gold is difficult to transport and more gold is being produced (mined) each year. Imagine bringing $1,000,000 of gold with you on a plane trying to live in another country. That would be a funny site.
Another way it’s valuable is that you’re not relying on the government to protect you. Common bank accounts have insurance but what if there is no more dollar or the government drastically changes, we’ve printed so much money in 2020 if that continues do you think your dollar will still have value? What if your country decides they will no longer use dollar or if they decide to print so much money you are instantly worth nothing due to depreciation? This seems farfetched, and to be honest, it might be. However, it has happened in other countries previously. Bitcoin is something you can bring with you no matter what happens to your government or what happens to your country. There’s no depreciation with Bitcoin because there won’t be more printed!
Crypto currency may be an extremely risky, volatile investment. But it is worth considering investing a portion of your money into it. Not just for making millions, like many people discuss. But for the safety and security of knowing that no government can take that from you. Knowing that you will have some form of currency with some value no matter what happens. It’s pretty difficult to transport your money in cash or in gold. But a wallet with your crypto on it is not too difficult to bring around.
If you’ve noticed, many people are adopting the currency. You can now buy tacos, groceries, and virtually anything with crypto. Banks and hedge funds are investing billions into the currency. NOW is the time to buy crypto before it gets so expensive it’s no longer an “investment” and becomes just day to day life. There is opportunity to be the person who “knew” crypto would be the next big thing instead of the person who joins so late they stay behind the curve!
Overall, this should not be thought of as a way to buy drugs or do things that are unethical. It should be thought of as the absolute safest way to store some of your net worth for the maximum diversity and flexibility with your money. Consider investing a few percent of your money into this currency. Be willing to lose it, be ok with the massive swings in the market, but keeping it for the long term for a nice piece of mind.
Just remember crypto may end up being much different in the future than it is now. This is not encouraging you to buy crypto or trust crypto. It is just an observation and for entertainment. These are just thoughts from a random person on the internet. Not a professional, do your own research please.