Should You Still Buy Bitcoin?
Dear Rich Lifer,
Bitcoin is the last step in the evolution of economics.
Commerce began with bartering of physical goods, then the world relied on gold, silver, and other commodities to store value and trade with others.
Next came along paper money and coins backed by gold, which accelerated global business and made trading labor for needs and wants more accessible.
In the last century, the gold standard was dropped and we’ve put our faith in government. But the rise of the internet is rapidly changing how we transfer value around the world.
Today, you don’t think twice about pulling out your iPhone to pay for a cup of coffee or send a friend or family member $20 through a service like PayPal.
Soon, it will be widely accepted that the blockchain provides the security and backing needed for currencies. When this final step is realized, you’ll have wished you’d bought Bitcoin in 2021.
With all the news about Bitcoin hitting its new all-time high, a lot of readers are scratching their heads wondering should they buy Bitcoin now?
What’s the point, if it can only go down from here?
In the short term, investing in Bitcoin could mean you’re locking yourself in for a roller coaster ride. But the more you learn about it, the more you realize its long-term potential.
Once you see the vision behind Bitcoin, you won’t bat an eye at price drops or spikes of 20% in a day or two.
Bitcoin is a global currency that has the potential to elevate the unbanked, and shift economic power from big banks and governments back to the people.
Whether you realize it or not, Bitcoin is the money of the future. Here are seven reasons why you should own at least some Bitcoin.
1) It’s a new asset class
Traditionally, asset classes have consisted of stocks, bonds, and as of late, real estate. Add cryptocurrency to that list. As more companies adopt Bitcoin and institutional investing shifts toward cryptocurrencies, you’ll eventually start to see Bitcoin show up in pension funds and be recommended by investment advisors.
2) Bitcoin can’t be confiscated
Bitcoin is independent of any central authority. Therefore, no government or central bank rules over them and they can’t confiscate them. In several countries, fiat currency can be frozen by the bank or seized by the government. Crypto is different in that you hold your Bitcoin wallet keys, and only you have access and control over your money.
3) It’s a hedge against inflation
What will your next paycheck buy you in Venezuela, Sudan, Argentina, or Zimbabwe? Not much, thanks to hyperinflation. The devaluation of fiat currency is a global issue. Bitcoin, however, doesn’t have that problem. Because the Bitcoin reward for mining a block is halved every four years, the rate of inflation actually decreases over time.
4) Bitcoin is “digital gold”
Not quite, but there are some striking similarities. Like gold, Bitcoin is a universal currency not controlled by any one government or entity. It’s difficult to mine, and it exists in a limited supply. And, like we said earlier, it doesn’t inflate like fiat currencies do. Therefore, Bitcoin doesn’t depreciate, which makes it an excellent store of value like gold. Unlike gold, Bitcoin is digital. Which means you can carry large amounts of it in a crypto wallet. Gold on the other hand is not so easy to move around.
5) The blockchain will become universal
Already companies like Visa, Fidelity, and Square are finding ways to integrate Bitcoin solutions into their products. Even some big banks, including Bank of America and Wells Fargo, are experimenting with blockchain. As the benefits of blockchain technology continue to prove themselves, the infrastructure will continue to grow.
6) It’s security is unmatched
The Bitcoin protocol offers the most secure system to make online payments in the world. For over a decade now, no one has ever successfully hacked Bitcoin, making it stronger than most banks online security systems. Some Bitcoin exchanges have been hacked, but the bitcoin system itself continues to stand strong against hacking.
7) It’s only the beginning
The biggest criticism of Bitcoin is its volatility. However, Bitcoin’s overall arc has followed an undeniably upward trajectory. And if we’re confident in everything else we’ve just shared today, the probability of it appreciating in value is good. In fact, the chances of Bitcoin appreciating are higher than any other asset class in the past 11 years.
Bitcoin’s purpose is to provide the people with the power to reclaim their economies. Eleven years later, we’re beginning to see it unfold.
To a richer life,
The Rich Life Roadmap Team