The year 2022 has not been good for cryptocurrencies. This year, Bitcoin has seen a value loss of more than 50%. Even more tiny coins have decreased. Many significant cryptocurrency funds are being forced to liquidate as prices plummet. Even worse, fraud claims are being made against certain bitcoin companies. But even with all of this volatility, you may still invest in one somewhat secure cryptocurrency. Let’s look at why, in this crypto winter, Bitcoin is the one cryptocurrency that is trending and worth investing in. Bitcoin: A Popular Cryptocurrency and a Good Store of Value
Bitcoin is a decentralized digital currency that may be sent across the peer-to-peer bitcoin network. To understand why Bitcoin is so valuable, though, we need to look beyond its function as a straightforward vehicle of transaction. In addition to serving as a medium for exchange, Bitcoin is the most stable value store in history. In short, a “store of value” is a location where individuals can retain the money they make. This is yet another important factor contributing to Bitcoin’s high value.
Gold and fiat money constituted the two most widely used stores of value prior to the invention of Bitcoin. However, they both have serious issues. Fiat currency has value as a means of transaction. .
However, throughout human history, gold has served as the primary medium of exchange for value. It has done this rather well, and its cost tends to go up with time. This explains why there is currently a $11 trillion gold market.
As a store of value, Bitcoin, however, has a few significant benefits over gold. This is why the long-term potential of Bitcoin is so fascinating. This explains why Bitcoin is nearly always a popular cryptocurrency. Let’s investigate what makes Bitcoin so special.
Limited availability
There is a limit of 21 million coins available for Bitcoin. There will only ever be 21 million Bitcoins in circulation, according to this. In contrast, billions of fresh dollars are printed annually in the United States. With every year that goes by, even the supply of gold keeps growing.
Because it instills confidence in the asset among investors, this limited supply is essential. Every first-year economics student is aware that the price of an item will decrease as its supply increases. This is not a concern for bitcoin investors.
Not a creator
The enigmatic Satoshi Nakamoto founded Bitcoin. This is an alias for an unidentified person or people. The absence of a founder for Bitcoin effectively means that no one is “in charge” of the platform. The network functions autonomously and cannot be governed by a single entity.
It’s comparable to how the internet is run by nobody. Yes, there are big businesses that make significant contributions to the internet, such as Google and Facebook. Nevertheless, even if these businesses failed, the internet would live on and grow.
The absence of a founder for Bitcoin provides investors with the assurance that it won’t ever be altered. For more on popular cryptocurrencies, continue reading.
Maintainable
The greatest cryptocurrency for wealth storage is Bitcoin. This is as a result of its total digital nature. Billions of dollars are easily stored on a hard disk or the internet. On the other side, a warehouse, transportation, and high security would be needed to store $1 billion in cash. This is much more valid for gold holdings valued at $1 billion.
Transportable
Because Bitcoin is digital, it can be carried around with ease. Sending money to any location in the world only requires one button click. Once more, this is a feature that makes Bitcoin special. Even sending money digitally takes several days to complete, a bank, and expensive transaction fees.
There are still a few features that set Bitcoin apart. I do hope, though, that you can now see why Bitcoin is so popular with investors. Nothing compares to it as an asset. As other digital assets come and go, Bitcoin continues to lead the market.
Why is Bitcoin a Cryptocurrency That Keeps Trending?
By now, the cryptocurrency market has been around for more than ten years. For better or ill, the sector has grown quickly. There are more than 18,000 cryptos available now. But how many of these coins can you identify? Perhaps ten or twenty? If you are able to list even 100, that is less than 1% of all cryptocurrencies now in use. In contrast, almost everybody is aware of Bitcoin. Why does Bitcoin consistently trend among cryptocurrencies?
It all boils down to the unchangeable qualities of Bitcoin that I outlined earlier. While they could have other advantages, many competing cryptocurrency projects lack the characteristics that make Bitcoin unique.
For those who are new to cryptocurrencies, it can be simple to think that they are all comparable. But equating Bitcoin with a cryptocurrency such as Dogecoin is akin to equating the US dollar with monopoly money.
Naturally, this does not imply that Bitcoin is faultless. Bitcoin has drawn a lot of flak for having the ability to be used as a money-laundering instrument. The enormous amount of energy needed to run Bitcoin is another significant environmental worry. But Bitcoin still appears to have a very bright future. Does this imply that you ought to purchase Bitcoin, then?
Is it wise to purchase Bitcoin?
This is contingent upon your individual financial objectives and risk appetite. Despite having a tremendous long-term potential, Bitcoin’s price is still very unstable. This is particularly valid in the near run. As we’ve seen this year, in a couple of months, the price of Bitcoin fell from over $47,000 to just under $20,000. There’s a good chance that this downward trend will continue.
Because of this, I would advise not purchasing Bitcoin with cash that you won’t need right away.
Furthermore, it’s impossible to predict when exactly Bitcoin will gain widespread acceptance. Within the next five years, it might occur. It might, however, take an additional century. Another risk to think about is this one. Having said that, Bitcoin is the solution if you’re searching for a popular cryptocurrency that also happens to be one of the safest wealth lockers ever made.
I really hope you learned something from this post about the top cryptocurrency that is now trending! Please keep in mind that I’m just providing my personal analysis and research; I’m not a financial advisor. As always, always conduct your own research before making any investing decisions.
