Tuesday, July 14, 2020

3 Reasons why traders love Bitcoin?

The Takeaway:

The leading cryptocurrency, bitcoin, was named as the best investment of the last decade as it went from less than a dollar at the time of launch to nearly $20,000 in 2017.

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Bitcoin has established itself as a successful investment tool over the last few years. Several from the crypto industry have claimed that bitcoin has more value as an investment tool rather than as a form of money. Eary investors in bitcoin reaped huge rewards as bitcoin’s value surged many times over during the last decade. 

Trading in cryptocurrency is always a risky business as their value is highly volatile, and they have no intrinsic value. But traders love bitcoin trading as it can be a useful way to earn money if you have the right knowledge and a better sense of trading. Some traders use bitcoin traders pro website to hone their trading skills. If you are a bitcoin trader, you can use cryptopanic to get all the updates related to the leading cryptocurrency in one place.

 

Reasons why traders love bitcoin trading:

  1. Bitcoins are scarce.
  2. Bitcoin is transparent
  3. Bitcoin is an alternative to gold

 

Bitcoin is and always will be scarce.

One of the reasons bitcoin has risen so much in value since its inception is because of its scarcity. There can only be 21 million bitcoins in existence. The scarcity factor plays a huge role in the price of bitcoin as inflation of bitcoin remains in check. If coins are limited in nature and demand rises, the price will naturally go up. Central banks all over the world have the power to print currency on will, which makes them prone to inflation, and they lose value over time. 

Note: The last bitcoin is expected to be mined in the year 2140.

 

Bitcoin is transparent

The other reason why traders love bitcoin is that it is transparent and decentralized. No one authority and no one CEO controls bitcoin. Any change in the protocol of bitcoin is done with the consensus of the bitcoin community. The underlying technology in bitcoin is blockchain, which acts like a digital ledger where all transactions are recorded. The technology allows traders to trust the cryptocurrency. 

 

Bitcoin has been hailed as digital gold

Several from the crypto community have hailed bitcoin as digital gold and have predicted that the market capitalization of bitcoin will overtake gold within this decade. Gold currently has a market capitalization of $6 trillion. If bitcoin reaches the market capitalization of $6 trillion, one coin will be valued at approximately $340,000. Traders love bitcoin for many other reasons, including privacy and an alternative for the current financial system as it allows holders to become their own bank and eliminates the need for bitcoin. 

Note: The current bitcoin market cap is over $176 billion. 

 

Conclusion

Over the last decade, bitcoin has established itself as a valuable store of value and has attracted investors of all sorts. Many consider bitcoin a must in their portfolios. However, bitcoin still has a long way to go to establish its self as a genuine and trustable means of payment. The leading cryptocurrency is still relatively new and has established itself as a valuable asset. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jesse Kirby
Jesse Kirby
Since his childhood days, Jesse was fond of writing and learning new things. He developed a special interest in bitcoin back in 2011 and started to get deep into the crypto space. After completing his masters degree from Bnos Menachem School, New York, Jesse became a full time writer and crypto analyst.

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