Bitcoin (₿) is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The implementation was released as open-source software in 2009.
In 2017, Bitcoin had an incredible year, with a bull run that rewarded investors with a 1,350 percent return and an all-time high of $20,000 as an early Christmas present. In 2018, however, the picture was very different. Bitcoin lost over 70 percent of its value, dropping from $14,000 on January 1st to below $4,000 to close the year. So out of these numbers, one thing is sure: It is more than just a bit volatile!
Right now though, Bitcoin is hitting all-time high prices (around 34 000$ in January 2021).
So are there still good reasons to buy Bitcoin in 2021?
For new investors exploring Bitcoin for the first time, the landscape can be confusing, even intimidating. Perspectives on bitcoin vary wildly from hardcore bullish zealots on the one hand to those who dismiss it as a worthless Ponzi scheme on the other. If you’re asking yourself ‘should I invest in Bitcoin’ here are five reasons why it might make sense.
1. Bitcoin adoption is accelerating global
adoption of Bitcoin is accelerating. For example, the number of users of the popular Blockchain wallet steadily increased throughout 2020 and accelerated since last November. The company’s data shows an increase from 43 million to over 62 million wallets in the past twelve months.
If you’re not sure where to start there are many platforms that will guide you such as Bitcoin Code. Was ist Bitcoin Code? This may be the first question you ask and put simply it’s an automated trading software that allows you to invest in bitcoin!
2. Bitcoin’s value proposition is perfectly suited to the macroclimate
Bitcoin was born out of the Global Financial Crisis of 2009. Against a backdrop of bank failures, government bailouts, and quantitative easing, Bitcoin was quietly deployed into the wild where it was ignored by everyone except for a small but growing group of idealists.
A decade later, and we are seeing a new financial crisis with more bailouts, historically low-interest rates, and increased quantitative easing. There is a growing awareness from both individuals and companies, of Bitcoin’s unique value proposition, and where Bitcoin sits in this macro environment.
3. Wall Street is going crypto
Bitcoin was the best performing asset class of 2020 as the chart below shows. Gold and equities were crushed in comparison. Bitcoin’s strong performance has not escaped the notice of Wall Street analysts, investors and companies. In August, Business analytics firm MicroStrategy announcedthat it had invested $250 million in Bitcoin, purchasing 21,454 Bitcoin as part of a capital allocation strategy. Since August the company has increased its total investment in Bitcoin to $1.125 billion.
4. Compagnies start to accept crypto as payments
Giants like Microsoft, Shopify, and as funny as it is, even Subway come in-game. Even the online world of casinos, or as a Finn would say “Kasino ilman rekisteröitymistä“, are accepting the currencies with open hands without any registration.
5. Bitcoin has always surpassed its previous all-time high after a price crash and recovery
Finally, for anyone asking ‘should I buy bitcoin’, it never hurts to look at historical price data. Bitcoin has seen many peaks and troughs in the last 10 years and has been reported “dead” over 383 times in mainstream media. However, it has always managed to surpass its most recent all-time highs so there is no reason to think that the same will not happen again.
With all that said, it is volatile. But if you have the patience you will always make a profit on Bitcoin’s future. As for its past it has always shown its resilience and success.