The financial crisis in 2008 solidified the importance of diversifying your portfolio as an investor, and it was also simultaneously the primary motivation for Satoshi Nakamoto to develop a decentralized virtual currency known as Bitcoin, with the corresponding peer-to-peer-based payment system known as -blockchain technology.
Today Bitcoin is considered a great long-term investment, and it’s even treated as a safe-haven asset. But, that wasn’t always the case. Let’s take a look at the new reality, where numerous institutional and retail investors are adding BTC to their portfolios.
1. Decentralized Currency
The main attribute that makes Bitcoin a great alternative investment is that it is completely decentralized. The blockchain network works as a payment system that is independent of the control of any central financial institution or external authority to the network.
The blockchain network is actually defined as a distributed, public digital ledger where the transactions are stored and processed on a network of nodes (peer-to-peer-based computer systems) worldwide.
One of the main reasons why the blockchain network is successful is that it is spread across many computers, and each node has a total overview of the data in the network, while each computer system has a copy of the blockchain.
Hence, it is impossible for anyone to make changes without that being apparent to the other nodes or alter the data of one record without changing the previous records, which makes this network tamper-proof and secure.
Furthermore, this also means that the supply of BTC is not impacted by decisions of any central institution, but it is determined by blockchain protocols like Bitcoin halving, for example.
This also means that the network, as well as Bitcoin, isn’t impacted by any external event or decisions by monetary policies, fiscal policies, political instability, hyperinflation, and any other factors that might devalue Bitcoin. As a matter of fact, Bitcoin is built as a deflationary cryptocurrency.
2. Accessible Online Trading
Due to the great accessibility of online trading sites, you can easily purchase BTC, as you would stocks, or any other assets. Moreover, there is a rise of automated trading sites like bitcoin-billionaire.net that make trading less complicated for beginners.
They also create more opportunities for busy professionals to trade with ease because you only need to set up an account and choose the parameters; the software will do the rest for you.
Thanks to Artificial intelligence technology, automated trading systems are created to enable AI-driven algorithmic trading strategies. Therefore, Bitcoin Billionaire is considered a high-performance trading system, where you can potentially make up to 70% in daily earnings and you can become a member just by making a deposit of at least $250.
3. Good Store of Value
When it comes to the supply of BTC, Satoshi Nakamoto, first and foremost, decided to limit it from the beginning because, again, the goal was to create a deflationary cryptocurrency.
This is why the total number of BTC that can ever be produced on the blockchain network is 21 million. Ever since Bitcoin was created in 2009, the difficulty of the mining process was going up since more and more miners were becoming part of the network.
Plus, Bitcoin halving, which cuts in half the block reward, increases the costs related to mining because the main award that compensates the costs of mining for the miners is reduced after the halvings.
In other words, as the mining process is becoming progressively difficult and expensive, the number of BTC that are being produced is slowing down, and in contrast, the demand is growing for BTC, which means the value of Bitcoin is also surging.
But, as its total supply is limited and investors know that Bitcoin is associated with digital scarcity, they invest in BTC as a decentralized safe-haven asset.
Cryptocurrency like Bitcoin is well-regulated and can be used as an alternative investment. These massive changes took place in the past years, and now, many companies are considering it a safe option. In comparison with other alternative methods for investments, it is considered one of the regulated ones.
There are chances of advanced stringent regulations on Bitcoin in the future. The companies are involved in the jurisdiction, and they are also opting for these regulations.
Nowadays, it has become easy to use Bitcoin as an alternative investment as compared to others.
5. Easy Exchange of Bitcoin into Cash
There are plenty of platforms that allow BTC owners to exchange their digital currency in cash. It is easy to buy and sell a virtual asset in fiat money by using these online portals. Compared to other alternatives, it is not illiquid, and hence, it is easy to handle.
You cannot access other funds quickly. You might need something that helps you in getting your money back. It is necessary to find an investor who can purchase your BTC and give fiat money in return. Therefore, you have to check out various platforms and know whether you are getting such a facility.
6. Investment Portfolio Diversification
If you are looking for a successful investment, then you can opt for a diversified portfolio.
There are fewer chances of getting rid of risk in case of no portfolio diversification.
If you do not take care of this factor, there is a massive risk that you can become a part of the financial crisis. In comparison with other alternative investments, digital currencies act differently, and you can predict different outcomes. Therefore, you should avoid such issues by diversifying the investment portfolio.
7. Bitcoin is Known for Its Growing Market
Undoubtedly, the market of BTC is growing at a rapid pace, and more people are getting involved in it. Many investors are attracted to digital currencies due to two main factors, i.e., hedge and flexibility.
If you want to participate in a different market, then you can get that chance in Bitcoin. There are a lot of opportunities to make money if you are investing and trading BTC.
8. Many Companies are Becoming the Part of the Bandwagon
Due to secure and advanced technology, many global markets and companies are getting attracted to digital currencies. There are plenty of uses and benefits of using blockchain technology in many organizations.
It is the main reason for the global adoption of such an innovation. Nowadays, many companies are becoming part of this bandwagon, and hence, they are participating in many money-making deals.
Undoubtedly, Bitcoin has become a popular alternative investment as compared to others across the globe. People find the investment in digital currencies more beneficial due to many reasons.
Consider all the mentioned reasons above to know how Bitcoin became a popular alternative investment. If you are not much involved in this field, you will show an interest in the participation after reading all the above factors.