- The hype is back after Bitcoin almost cracked the $24,000 landmark before starting to slightly correct.
- After shedding more than 60% of its value in 2022, BTC bounced back in January with a 20% gain. Altcoins like Ethereum, Solana, and Fantom exploded, with some doubling in price within a few weeks.
Why are people getting back to crypto? Aren’t they scared it could lose half its value again?
Bitcoins Offers Huge Potential Profits
Bitcoin has been appreciating in value since its launch in 2009. Sure, sometimes it loses value. But over the years, BTC had made more money for investors than any other financial asset.
The only reason people don’t make money in crypto is panic selling. If you bought Bitcoin during its peak price in 2011 ($100) or 2013 ($1000), you would still be profitable today.
In 2023, no one knows whether crypto will create a new all-time high. Nonetheless, speculation is rife. And that’s why some people are buying Bitcoin with everything they’ve got.
Should you buy Bitcoin in 2023? Investing should be a personal decision informed by research. Don’t buy crypto because everyone else is doing it. Buy it because you believe in its functionalities.
Hyper-Adoption by Banks, Merchants, and Casinos
Bitcoin is like a religion. People who love it talk about it to everyone they know. Celebrities like Elon Musk tweet and encourage everyone to own. In turn, banks, eCommerce stores, and casinos have no option but to accept it as a payment method.
To be clear, businesses don’t accept crypto just because it has a large fanbase. The digital currency has benefits for business owners. For example, it does not support reversals. If a customer buys something using BTC, they can’t get a chargeback.
This helps businesses reduce instances of fraud, which is rampant among people who buy through credit/debit cards. Besides curbing fraud, crypto has low transaction costs, and it’s fast and secure.
Of course, Bitcoin’s security, low fees, and quick payment speed are pretty convenient to customers as well. If you want to deposit money in a casino, you expect a quick, low-cost transaction.
If you choose a casino with Bitcoin payments, you could also earn a welcome bonus. The best casinos match your first deposit 100%. Additionally, they can give you free spins to play your favorite slots.
Bitcoin is a Scarce Commodity
One of the golden rules of investing is that you should go after valuable, scarce assets. Bitcoin is valuable now that it has grown by more than 10,000% since its invention.
It’s also scarce. Satoshi Nakamoto, who created Bitcoin in 2009, designed a blockchain that will mint a maximum of 21 million bitcoins. More than 80% of all bitcoins have already been mined.
That means the digital currency’s availability will continue to reduce. And if its demand doesn’t change, its value will skyrocket over time. Who doesn’t want that?
As we mentioned earlier, the only challenging part of owning Bitcoin is avoiding the temptation to sell it too early. Its price will certainly dip every once in a while. But if you can hold onto your coins for years, they will be a lot more valuable in a few years.
Crypto is Decentralized and Uncensored
Bitcoin is like no other payment method. It’s decentralized, meaning it’s not controlled by a government or private entity. All crypto transactions are recorded on the blockchain.
The blockchain is decentralized, transparent, and immutable. Transparency ensures there’s no foul play at any point. You can check past and present transactions on the blockchain. But you can’t change them.
Some governments have banned Bitcoin use in their countries in the past—Russia, China, and Brazil, to name a few. But these decisions didn’t affect Bitcoin’s growth. And neither did they affect how it works.
In other words, Bitcoin offers a fair playground in the world of finance. No one can print more Bitcoin than the pre-set maximum of 21 million. As such, it will always be scarce.
By comparison, all governments print money at will. This creates inflation and devalues money. Governments also spend money on pubic audits. This creates corruption and misuse of public funds.
Bitcoin is Secure and Hackproof
Everyone wants to invest in a secure payment method. Bitcoin is safe. It uses cryptography to ensure no one can steal your funds while they’re on the blockchain.
The only way someone could take down the blockchain and all Bitcoins is by hacking 51% of the computer nodes that keep it secure. However, hacking more than half of any blockchain is impossible.
It would take too many resources that you wouldn’t gain anything in return. After all, crypto would also collapse if something of the sort ever happened, further making it a worthless endeavor.
You may ask, why do people lose crypto if it’s safe? There are several ways anyone can lose their Bitcoin. The easiest method is to reveal your crypto addresses. If you reveal the private keys required to withdraw Bitcoin, anyone can withdraw them from the blockchain.
Another way to lose crypto is by storing them inside an unsafe wallet. It might be a centralized exchange that could collapse at any time. Or you might use an unsafe crypto wallet app. If you want to keep your coins safe, use a secure offline wallet.
FOMO (Fear of Missing Out)
Bitcoin has proven millions of doubters wrong for more than a decade. Now, no one wants to miss out on making money by ignoring the relatively new asset class.
In the past, investors avoided crypto because they thought it would never attract mainstream attention. Now it does. From PayPal and Square to banks and eCommerce stores—crypto is attracting corporate attention.
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When big banks and businesses start accepting a technology, there’s no cap on the maximum value it can gain. Of course, bitcoin isn’t the only cryptocurrency out there that makes people rich.
The top 20 altcoins rose by up to 1000% in the last bull market. As a result, it’s expected more people will invest in altcoins like Solana, Ethereum, and XRP than those who will buy Bitcoin.