Bitcoin,which most of us know as the leading cryptocurrency in the crypto arena, the currency that was created by Satoshi Nakamoto, has been making waves ever since its inception over 10 years ago.
There are thousands of competing cryptocurrencies that rival Bitcoin, but very few have stood the test of time or have gained popularity like Bitcoin has, Bitcoins rock solid foundation, its cleverly thought out code, its security and the fact that it is decentralized are some reasons Bitcoin stands head and shoulders above the rest.
The question now is,”is Bitcoin a good investment”?.I truly believe it is, and in this article i will explain to you why i am invested in Bitcoin and why you should make it part of your investment portfolio as well.
HODL:My Bitcoin long term strategy.
The term “HODL”was a misspelling of the word “hold”, this term stuck and is used in the crypto world with reference to holding cryptocurrency for medium to long periods of time(Hold On For Dear Life).In my case, based on Bitcoins historic performance, i have set my hodl for 10 years, i will buy Bitcoin with a small percentage of my income so that my portfolio grows over time (never invest more than you are willing to lose).I am 50 years old and my goal is to hodl for 10 years so that i reap the benefit of what i believe would be life changing rewards to aid me into my senior years.
I strongly advise anyone who wants to buy and invest in Bitcoin to first read up and educate yourself on Bitcoin, other cryptocurrencies and the Blockchain. There are lots of informed articles on the internet that will help you out immensely, and will prepare you for your introduction into the crypto space. You will understand bitcoins history, its functionality, its trading history and Bitcoins impact on our future. When armed with this knowledge, you would be able to make informed decisions and plot your own investment strategy.
Bitcoin pizza day
On 22 May Bitcoin enthusiasts around the globe celebrate Bitcoin pizza day. On this day in 2010,a gentleman named Laszlo Hanyecz traded 10 000 Bitcoin to buy 2 large Domino pizzas. The Bitcoin was quoted at USD$41 at that time, so to commemorate this monumental transaction, on this day, pizza providers offer discounts to honor Laszlo s symbolic transaction.
Now, if Mr Laszlo Hanyecz had used fiat currency to pay for his pizza, taken his 10 000 Bitcoin and hodled that Bitcoin till present date, which is just over a 9 year hodl, the USD$41 that equated to 10 000 Bitcoin would be worth a staggering USD$112 900 000 at today s price of USD$11 290 per Bitcoin, i will say that again, one hundred and twelve million, nine hundred thousand United States Dollars.that hodl would have been life changing for Laszlo to say the least.
The amazing fact Bitcoin, which has been in existence for over 10 years is still considered to be in its infancy. Only 21 million Bitcoin will ever be created and every 4 years the number of Bitcoin mined gets halved, and at present there has only been 17 million Bitcoin created, and an estimated 3 to 4 million Bitcoin have been lost for ever so far because of among other things, people not backing up and loosing their private keys, investors dying without revealing their existence or private keys to spouses. Because the number of Bitcoin is limited, its scarcity will drive its value to the moon when total adoption of Bitcoin and the Blockchain take place.
Bitcoin, controlling your own future
Some of the most financially successful people on the globe are invested in Bitcoin, people like Richard Branson, John Makafee, the founders of EBay and Yahoo all embrace and understand all its unique features and the massive advantages Bitcoin has over traditional fiat currencies.
Bitcoin is a black hole for fiat currencies, the purchasing power of currencies continues to fall and governments are able to manipulate their currencies value and print them indiscriminately. Bitcoin has a fixed supply, its a peer to peer electronic cash system that is incorruptible, decentralized and is not owned or controlled by anyone. Bitcoin gives the holder complete control, no government, bank or institution can control or censor your Bitcoin.
In some countries like Venezuela and Turkey, there has been a massive adoption in Bitcoin, this is because the citizens of those counties do not trust their local currencies and their banking system. Venezuela has been hit with massive hyper-inflation, deeming their currency almost valueless and bringing untold suffering to the people of that nation, luckily for them, Bitcoin has been their salvation.
Many governments and large international companies have ventured into the crypto space, there are high volumes of Bitcoin deals coming out of China. Even the social media giant, Facebook has announced that they have ventured into the crypto world and will release their very own coin called Libra next year. What Facebook has done for Bitcoin is massive, it has spread awareness about cryptocurrencies to billions of its users. Although Libra will be fighting for a different piece of the crypto pie as opposed to Bitcoin, it will give Bitcoin legitimacy as millions of Facebook users who have sat on the fence, skeptically wondering what this new tech is all about, will now stand up and take note.
Conclusion The Facts Speak
Bitcoin is still very much in its infancy, a sleeping giant that has all the fundamentals to revolutionize the future of money and with the Blockchain, it will give its users total control over its use.
The fact that only 21 million Bitcoin will ever be created truly makes it digital gold. If you own just 0.28% of a Bitcoin(just over 1 quarter of a Bitcoin),you can be certain that no more than 1% of the current world population can ever have more Bitcoin than you, your percentage of ownership will never decrease.
Bitcoin has been declared dead hundreds of times by skeptics, but 10 years on, is still with us. When Bitcoin trades bullish, and prices are on the rise, Bitcoin is praised loudly. Unfortunately investors with limited knowledge usually FOMO in(Fear Of Missing Out)mostly at the point where prices have almost peaked, and when the market turns bearish, like in the crypto winter of 2018,panic sets in, the skeptics castrate Bitcoin in the media, like a dooms day scenario….and the cycle goes on.
These are the reasons why i believe investors in Bitcoin should hodl, look at Bitcoins long term trading history, it is on the rise. Trading short term is risky but possible only with proper and thorough schooling.
Is Bitcoin a good investment? for me, that would be a resounding yes. Bitcoins growth from it inception speaks for itself. Set yourself a medium to long term investment strategy, and stick to it. Experts in the field believe Bitcoins price could be pegged in the hundreds of thousands or even millions in the not so distant future. Familiarize yourself with Bitcoin, understand its fundamentals, start up your hodl and let time do the rest…and never forget the lesson of Laszlo and Pizza day.
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