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7 Benefits of Investing in Bitcoin

The latest reports show that, since 2017, Bitcoin as a medium of exchange has processed transfers worth $670 - $750 billion.

By Rea SetiaPublished 4 years ago 4 min read
Bitcoin Source:WazirX Blog

Along with Ethereum, that number has crossed the $1 trillion mark. It implies one thing. Bitcoin as an asset has tremendous value.

And not just this. Bitcoin's market cap is more than some of the prestigious companies in the world like SAP, Oracle, Nike, Accenture, McDonald's, IBM, etc.

Also, the COVID-19 lockdown saw a 400% surge in Bitcoin trading activity on Indian cryptocurrency exchanges like WazirX.

Investment interest is at an all-time high. People have realized that exposing a certain percentage of their portfolio to BTC has its benefits. But what are those benefits?

Let's check them out!

Astronomical Long-Term ROI

Clark Moody who created the first real-time bitcoin market data website recounted BTC's decade long market history in a recent blog article.

According to him, the first bitcoin trade happened on Mt.Gox 10 years back on July 17, 2020, and involved an exchange of 20 BTC.

Then the price per bitcoin was just $0.04951. Considering the volume of the trade, it amounted to almost a dollar.

Clark points out that the buyer would have made almost 19 million percent returns on his/her investment (considering current market prices) if he/she didn't sell then.

And even for folks who entered late, 2017's rally was extremely rewarding as can be seen from the graph below:

Bitcoin Price Chart from 2013-2017

Even this year bitcoin has beaten all other assets and markets wrt ROI. BTC has appreciated by 32% year-to-date (YTD) whereas gold's YTD ROI is 25%.

Bitcoin is a great asset for earning long term returns on investment.

Always-On, Never Sleeps

Yes, you read that right! Contrary to conventional markets, bitcoin markets are on 24X7X365. That's because there is no human interference in it's functioning, as BTC transactions are cryptographically secured.

And speaking of transactions, since its inception in 2009, the Bitcoin network has processed monetary transfers with 99.98% uptime. Ever witnessed such efficiency in traditional financial systems? Don't worry you won't.

You Are the Sole Owner of Your BTC

When you sign up for investing in bonds, mutual funds, commodities, etc, you hand over your capital to an intermediary who 'handles' your investment for you.

You have none to restricted say in your investment. However, with bitcoin the story is different. Contrary to the usual market models, BTC is free for anyone to buy, and no one controls your investment. You are the sole owner of your bitcoins.

As a matter of fact, that was the original vision of Satoshi Nakamoto, bitcoin's creator - financial democracy and user autonomy.

This means you yourself can manage your portfolio and build a handsome corpus on your principal capital 'independently'.

Cannot be Hacked

India has around 5.5 million bitcoin and crypto investors. All of them are in it for the profits. But most of them also know that BTC is unhackable. Why?

Because of its underlying distributed ledger arrangement. Every network participant (full nodes and miners) on the Bitcoin network is aware of every transaction that happens.

This means that a hacker will have to take control of the majority of the network to hack Bitcoin through a '51% attack'.

But carrying out a 51% attack on the Bitcoin network nowadays is no joke. In the last, the BTC ecosystem has greatly matured and has become pretty robust.

Data shows that the cost of carrying out a network takeover attack on Bitcoin would be ~$500,000 an hour.

Bitcoin is a Deflationary Asset

Inflation occurs when the purchasing power of an asset depreciates over time, and that in turn has a considerable impact on the financial savings of bank account holders.

Deflation on the contrary works differently and is an inherent feature of the Bitcoin protocol.

Another feature is the limited supply and issuance of BTC. Only 21 million bitcoins will ever be created.

Out of these 21 million coins, 18.4 million BTC are already in circulation. This means that as time passes increasing demand and restricted supply will indirectly result in an appreciation in bitcoin's rate.

Portability

Bitcoins can be stored in wallets and can be carried anywhere. This is not true for an asset like gold or cash.

Since bitcoins exist on the blockchain, they can be accessed from anywhere across the world. When you buy BTC, you don't purchase physical bitcoins.

You pay for a portion of the blockchain network. This is a hugely useful attribute as it means that BTC is not restricted by a physical form or place of storage.

Invest any time, anywhere

Investment in bitcoin can happen from any time and from anywhere. Unlike, traditional investment options where you have to deal with tonnes of paperwork and unnecessary formalities, you can buy BTC right from the comfort of your smartphone.

In India, WazirX offers a seamless bitcoin buying experience. Just download the app, log in with your email and password, enter your basic details, and you are all set!

To know more on how to find your way through the app, check out the video below:

Also you can download the app and Start Trading Now!

Android App - WazirX - Buy Sell Bitcoin

iOS App - ‎WazirX

bitcoin

About the Creator

Rea Setia

I am a passionate blogger who loves to learn, write and share useful well researched content related to money & careers, beauty, relationship, health, fitness, diets, lifestyle area. Just keep in touch to stay updated...

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    RSWritten by Rea Setia

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