Is Bitcoin Worth Holding as an Investment?

Thursday April 28, 2022
Originally published on April 28, 2022

Is Bitcoin Worth Holding as an Investment?
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Bitcoin is currently one of the most lucrative investment assets today. Find out why Bitcoin is worth holding as an investment.

Many institutional investors were initially skeptical about investing in Bitcoin, citing regulatory concerns and high volatility. However, the sentiments have rapidly changed as Bitcoin became more popular in recent years. Several global corporations, merchants, and individuals now use Bitcoin for daily transactions and investments.

While Bitcoin's inventor, Satoshi Nakamoto, initially introduced it as an alternative means of payment, businesses and investors have also discovered other uses for it. Many institutions and individuals are increasingly using Bitcoin as an investment asset to diversify wealth and hedge against inflation. Here's why Bitcoin is worth holding as an investment.

Potential for Higher Returns

Many experts and institutions have issued different predictions about Bitcoin's future. While their opinions vary, most believe Bitcoin will undoubtedly attract higher prices over time. That is mainly due to its unique supply and demand economics. Unlike traditional assets regulated by governments and institutions, Bitcoin is a decentralized asset.

Satoshi Nakamoto capped Bitcoin's supply at 21 million tokens only, with about 90% of that already mined. It also undergoes halving, reducing the number of rewards issued to miners by half every four years. That means Bitcoin will become scarcer over time while its market demand continues to grow daily.

Bitcoin's diminishing supply and growing demand enable it to attract and maintain a higher purchasing power over a long period. That would allow those with Bitcoin holdings to earn substantial profits in the future when the prices skyrocket.

More Autonomy in Wealth Management

The Bitcoin inventor's main goal was to eliminate the barriers and bureaucracies in traditional financial systems. Thus, it is a decentralized investment asset without any central authority. That means no government or institution can confiscate your Bitcoin holdings. Its decentralized network helps prevent any single individual or entity from having control over funds or transactions.

Bitcoin allows you to invest anywhere in the world without external intervention. Thanks to its mass adoption across multiple global economic sectors, many ways now exist for investing in Bitcoin. While Bitcoin holding offers the best potential for higher returns, other short-term investment options have good profits margins for investors.

With the many crypto exchange platforms and institutions accepting Bitcoin today, it is easy to liquidate the assets whenever needed. Exchanges such as Dogecoin Millionaire can help you convert your holdings into other investments, transfer them to your bank or store the funds long-term.

Bitcoin also allows users to transact without revealing their real-world identities, enhancing privacy.

Better Security and Transparency

The traditional financial institutions have constantly exposed investors to several risks. For instance, cross-border transactions often involve multiple third parties that share their clients' information without consent. Besides, they also use various policies to defraud investors. That has discouraged many people from investing, especially in nations prone to corruption.

Holding your assets in Bitcoin can help to solve such problems. Unlike conventional transactions that usually involve several intermediaries, Bitcoin transfers occur exclusively on the blockchain. Bitcoin runs on a peer-to-peer network, facilitating seamless cross-border money transfers without third-party involvement.

Instead of intermediaries, Bitcoin's blockchain verifies and validates all transactions on a shared digital ledger, accessible to users only. However, the catalog is encrypted and irreversible, making it impossible for users or third parties to manipulate transactions. That creates a trustless environment, with better protection for users' data and assets on the network.

Overall, contentions still exist on whether Bitcoin should be a means of payment or a store of value. Nevertheless, Bitcoin is an investment worth holding because of its potential for higher returns, enhanced autonomy, security, and transparency.