Some people and experts have declared Bitcoin dead countless times. Nonetheless, it has emerged as a new and better investment for investors. It is the most traded and popular cryptocurrency in the world. As a result, it has attracted much attention from the media and investors. Yet, some people don’t know the investment benefits of including Bitcoin in their portfolios. Here are valid reasons to add this virtual currency to your investment portfolio.
Contents
- High Portability
- Bitcoin Scarcity
- Fast Transactions
- Divisibility of Bitcoin
- Increasing Adoption
- Conclusion
High Portability
Bitcoin is not a physical item that you can hold in your hand. It is a digital asset that you can access and transfer anytime. Unlike gold, Bitcoin is portable, and nobody can even detect that you hold Bitcoin in the crypto wallet you have in a smartphone or tablet.
Ideally, people store Bitcoin in smartphones, computers, and hardware wallets. Transferring Bitcoin from one crypto wallet to another is also a seamless task. Provided a smart device has an internet connection, you use it to send your tokens to the receiving wallet within minutes.
Also, you can easily convert Bitcoins into cash on a crypto exchange like nft-code.io. Once you’ve registered with such a platform, you can transfer Bitcoins to your account and sell them to receive fiat money in your bank account.
Bitcoin Scarcity
With the decreasing Bitcoin supply, the demand increases. And this raises the price or value of this cryptocurrency. Satoshi Nakamoto created this digital currency with a protocol that limits its availability to 21 million coins only. Miners continue to produce more Bitcoins, nearing the total number that the world can ever have. Consequently, more people purchase this virtual currency believing its value will be higher once miners produce all the possible coins. And its price will keep increasing until miners generate all the 21 million coins.
Fast Transactions
Being digital means people can transfer Bitcoin faster, anytime, anywhere, using their mobile devices. A Bitcoin transaction takes minutes, even cross-border payments. And this isn’t the case for fiat money. Consequently, Bitcoin’s adoption keeps increasing globally as individuals and businesses realize the benefits of transacting with it.
What’s more, Bitcoin transactions are cheaper since they don’t involve intermediaries that charge service fees. Therefore, you will incur fewer charges when transacting with Bitcoin than conventional payment methods.
Also, the Bitcoin blockchain keeps a record of all transactions that have taken place between Bitcoin addresses. Therefore, participants can confirm or monitor Bitcoin transactions in real-time. And nobody can tamper with this record since Bitcoin transactions are irreversible.
Divisibility of Bitcoin
Bitcoin is the most divisible form of money. It is divisible to eight decimal places. A Satoshi, the smallest unit of Bitcoin, amounts to 0.00000001 BTC. And this equates to 100 millionth of a Bitcoin. High divisibility means small units such as the Satoshi can facilitate small micropayments. Micropayments are becoming a more popular payment system in the digital age. And this makes Bitcoin increasingly popular among merchants and consumers.
Increasing Adoption
It’s no secret that individuals and institutions worldwide embrace Bitcoin more than ever. That’s because they have realized the potential of this digital currency. Today, you can quickly find a local or online merchant that accepts Bitcoin. That means you won’t have difficulties spending your tokens. Large companies are also investing in Bitcoin or taking it as a payment method. Such signs indicate that Bitcoin might eventually become a mainstream currency.
Conclusion
Bitcoin has dominated the crypto world for many years. Its price has also increased over the years despite its volatility. Today, adding Bitcoin to your investment portfolio could mean investing in a crypto asset that might eventually become a global digital currency. Additionally, you could sell your tokens later to reap hefty returns when Bitcoin’s value increases.
