Bitcoin, the first and most popular cryptocurrency, remains the most traded coin and one of the best investments of our century, as experts claim. While we don’t say that you should invest in Bitcoin (BTC) right away, there are many reasons why this digital asset is of huge importance in the investment world. Keep on reading!
The History of Bitcoin
From bartering to credit cards, the history of money is fascinating. That said, nothing can compare to Bitcoin – the cryptocurrency that has changed the way we think of finance.
Since its beginning, Bitcoin has captivated the imagination of crypto enthusiasts given its promises of decentralisation, fair economic order and equal access to finance.
Note that BTC was created by the mysterious figure Satoshi Nakamoto and launched in 2009. Presently, Bitcoin is globally recognised as organisations and state-run administrations have also embraced it.
Bitcoin has led to the creation of numerous coins and projects. One particularly interesting is the ZeroCoin, designed to to fix a major weakness in Bitcoin – the lack of privacy guarantees we take for granted in using credit cards and cash.
But why is Bitcoin important exactly?
BTC to Support Economies
The current economic crisis showed the importance of contactless payments, data interoperability and transparency.
Many countries turned to digital currencies to protect their economies from the staging inflation rates we are witnessing.
Since it doesn’t exist in a physical form, Bitcoin transactions are convenient, fast and secure. The conveyance of enormous amounts of gold across seas can require weeks, right? Well, with BTC, you can make payments across the globe in seconds.
What Makes Digital Forms of Money Special?
Cryptocurrencies are suitable as a protected method for trade in today’s computerised economy. Let’s not forget that digital forms of money are fungible and can be traded between one another.
BTC is one of the most traded assets as per market cap and trading volume. Its all-time high of almost $70,000 per coin is still unprecedented in the sector.
Bitcoin is appropriate for payments for goods and services and micropayments as well, since it may be broken into units as small as 0.00000001 BTC.
Different Types of Crypto on the Lookout
Though crypto values keep on fluctuating, making trading risky, BTC and its fellow altcoins are here to reshape the financial order.
Ethereum, for example, completely revolutionised the sector by introducing smart contracts and decentralised applications (dApp).
There are also many decentralised exchanges (DEXs) and other crypto projects.
The idea of decentralised finance (DeFi), with cryptos being the most discussed aspect of the DeFi infrastructure, can help people receive loans, get services, execute payments, share artwork, and protect their data.
Why it’s Important to Invest in BTC | Conclusion
To sum up, Bitcoin is one of the most important investments:
- It acts as a hedge against inflation
- It can help economies
- It is a popular asset among traders
- It is a lucrative investment opportunity
- It can be used for payments for goods and services
- It has led to the creation of numerous altcoins
- It is an essential part of the DeFi world
These and many more reasons show why it’s important to invest in BTC.
While cryptocurrency investing is a risky venture due to the volatility of the market and changing regulations globally, it can make an excellent addition to your portfolio.
That said, you should do your own research and evaluate the level of risk you are prepared to take.
If you are a beginner, always consult a licensed professional to help you understand the market and your own financial options. Carry on due diligence!