Why Should You Buy Bitcoin? Top 10 Reasons To Consider

Why should you buy Bitcoin, other than as an investment? There are a lot of reasons that you should buy Bitcoin outside of sheer speculation. Bitcoin is the pioneer of cryptocurrencies, and has captured the imagination of investors worldwide. But outside of investment, there are philosophical reasons that people give for buying BTC. Here are the CoinJar top ten.

1. Immutable rules

At the heart of Bitcoin lies an unyielding rule: Its 21 million coin supply cap. That means that there will only ever be 21 million Bitcoin. While there are around 19.5 million BTC in circulation now, miners keeping the Bitcoin network running are rewarded with new Bitcoin, which they can sell and thus new BTC are released to the public. But this will stop when 21 million is reached.

Unlike fiat currencies (normal money like USD, AUD, or Pounds) that governments can print at will, Bitcoin’s scarcity is permanent and transparent. Everyone can verify this rule, and no one can alter it. This fact alone sets Bitcoin apart from the ever-expanding money supply of traditional currencies.

2. Decentralisation

Bitcoin operates on a decentralised network, which means it is free from control by any central authority. It operates outside of governments, banks, or corporations, and these organisations will never control it.

This decentralisation ensures that if you own Bitcoin, it will remain secure and censorship-resistant.

3. Hedge against inflation

As central banks print more money, that action alone erodes the value of traditional currencies. The more they print, the less the currency is worth.

Bitcoin, with its fixed supply, acts as a “hedge” against this devaluation. Because no one can print any more Bitcoin, then it can’t be devalued by printing more.

In this way, if your local currency is falling in value, you can buy Bitcoin as a store of value. While cryptocurrencies themselves can have volatile prices, splitting risk and holding both Bitcoin and fiat is a way to share risk (or hedge).

Many investors buy Bitcoin as a type of “digital gold,” a store of value immune to the whims of monetary policy.

4. Global acceptance

Bitcoin’s adoption is growing worldwide. More businesses, from small startups to multinational corporations, accept Bitcoin as a payment method. As this trend continues, Bitcoin’s utility and value increase.

If you wanted to pay someone in another country via banks, it would take days and have high fees. However if they accept Bitcoin, then the transaction time is fast and it can cost just cents to transfer the Bitcoin. In this way, Bitcoin is a competitor for the big banks. You can imagine why they are unimpressed with it.

5. Store of value

Throughout history, gold has been seen as a store of value. Bitcoin is called “digital gold,” because it has similar characteristics to actual gold. Its scarcity, durability, and fungibility make it an attractive long-term investment for many people who believe in its value.

6. Technological advancements

Bitcoin’s underlying technology, called the blockchain, has uses way beyond currency. Smart contracts, decentralised finance (DeFi), and non-fungible tokens (NFTs) all use blockchain technology to do their thang.

These are technologies that are changing the world for the better.

In other words, we are on the verge of a massive technological revolution where we switch how we operate online life from Web2 to Web3. And this is all because of the underlying technology that was developed to make Bitcoin work.

So thanks, Satoshi Nakamoto.

7. Institutional adoption

Big fat huge institutions, including investment firms and publicly traded companies, now hold Bitcoin as part of their portfolios. We are talking hugely mainstream investment houses with trillions of dollars under management.

This means that there is no going back when it comes to Bitcoin. It has been adopted by the the big guns and is no longer an alternative investment.

8. Halving events

Approximately every four years, Bitcoin undergoes a “Halving” event. During these events, the miners, who help keep the Bitcoin network working, get paid half of what they were getting paid as a reward. Some miners pack up shop and ride off into the distance, giving up mining forever, as they feel the halved reward is not worth their efforts. This theoretically makes Bitcoin more scare, and thus more valuable.

In Bitcoin’s short history, the Halving mechanism typically produces price rallies right afterwards. Although this is not a guarantee of what will happen in the future, it is safe to say there is a good chance of the price going up after the Halvings.

9. Early adoption advantage

While Bitcoin’s price has seen dramatic fluctuations, early adopters who held onto their coins have reaped substantial rewards. The potential for future growth remains high, especially as institutional interest continues to rise.

10. It’s just so cool

Bitcoin has the potential to be the greatest financial tool on the planet. It offers an inclusive financial system to people who are currently “unbanked” due to not having an address, or without access to a bank, or any money to put in it. With just an internet connection, people can join in, and they don’t need to own anything except a phone.

This means that people can take control of their wealth without reliance on intermediaries such as banks. Even people without a formal address can use this global money system. They can set up a wallet and right away receive Bitcoin from relatives abroad, without having to enter a bank.

Also, Bitcoin is completely portable right across the world. Whether stored on a hardware device, a mobile wallet on a smartphone, or even on a piece of paper, Bitcoin is not affected by physical boundaries. And there is now talk of being able to store your Bitcoin on a hologram! This mobility enables money to cross the globe effortlessly.

Conclusion: Reasons to buy Bitcoin

Bitcoin offers a blend of scarcity, decentralisation, and technological innovation. Like all investments, investing in a cryptocurrency isn't without risk. However this is one of the cooler ways to get involved in the world’s financial system.