You may have heard of Bitcoin back in 2017, when it gained international attention as it rose in value. It dropped back down in 2018, and people thought that the craze was over. However, it began to gain traction again in 2020. Bitcoin is a unique asset that is based on blockchain technology, and it appears to be here for the long run. Once people learn how to buy Bitcoin, they are eagerly jumping in with both feet. Take a look at the following seven reasons to buy cryptocurrency in 2021.
1. Cryptocurrency Is Decentralized
Cryptocurrency is decentralized, which means that it isn’t controlled by a central governmental authority. It is based on the blockchain and allows each individual to be in charge of his or her transactions. Bitcoin transactions are peer-to-peer, which means that it is transferred directly from one person to another without an intermediary such as a bank. You have more control over your Bitcoin than you do over your money in a banking system. You can learn more about buying and selling cryptocurrency from an exchange such as Bitbuy.
2. Cryptocurrency Is an Alternative Investment
Cryptocurrency is an investment just like investing in stocks or bonds, and it has a great potential for growth. Bitcoin grew by 300% in 2020, and it is hovering over $35,000 in 2021. With traditional investors now investing in the cryptocurrency market, it has the chance to gain traction and continue its rise. It is risky compared to more traditional investments, but the upside could be significant.
3. Bitcoin Cannot Be Duplicated
When you have paper money, the potential for counterfeit and fraud exists. Paper money needs to be verified and proven to be legitimate. Bitcoin is based on blockchain technology, and there is a public network of computers that can confirm that each transaction is valid. Bitcoin is attached to its transaction ID, so it is not possible to spend it more than once. You use a private code for your Bitcoin, and it cannot be duplicated or counterfeited by anyone.
4. Cryptocurrency Has Grown in Value
The first Bitcoin transaction took place in 2009, and it has stayed the course for the past 12 years. It had a historic run in 2017 before it corrected and fell in 2018. Many thought it was gone for good, but it stayed steady until 2020, when it began another historic rise. The value of Bitcoin increased by 300% in 2020, and it has held steady at those prices so far in 2021. It has shown that it can stand the test of time, even if it has corrections along the way.
5. Traditional Institutions Are Investing in Bitcoin
For many years, traditional institutions stayed away from Bitcoin. However, this is no longer the case. Not only have many investment firms added Bitcoin as an asset for investors, but last year, the Toronto Stock Exchange approved the Bitcoin Fund for trading. People are realizing that digital currency that isn’t backed by the government can be good for individuals, and you can take comfort knowing that traditional institutions are investing in this class.
6. Cryptocurrency Is a New Asset Class
Investing in the newest thing has long been popular, and Bitcoin is no different. People want to invest in something that still has the potential for massive growth. Once you learn how to buy Bitcoin, it is easy to choose how much you want to invest. It is a new asset class, and you have a lot of choices, including Bitcoin and several hundred other cryptocurrencies. Some are new and emerging, and they are very inexpensive and you can speculate as to whether you think they will take off. Cryptocurrency is a new asset class with a lot of potential to make money.
7. There Are a Lot of Different Cryptocurrencies
You have a large number of different choices when you buy cryptocurrencies. In fact, there are more than 800 different cryptos to choose from. You can research each one and choose those you want to take a risk on. It is similar to the tech stocks in the 90s, and any of them could take off. Although it is a high-risk investment, it offers the opportunity to make a lot of money if you choose the right cryptos.