Bitcoin is and has remained for years the best cryptocurrency tokens in terms of market capitalization. However, it is also one of the most expensive tokens out there and has seen a high level of volatility.
This has led to many investors and traders utilizing the token to increase their overall capital. While there is a high level of risk associated with cryptocurrency investments, the same can be said for any other traditional investment as well.
If you are still on the fence about why you should invest in the Bitcoin (BTC) cryptocurrency token, today, we are going to go over some of the best reasons.
The Popularity of Bitcoin
Bitcoin is the most widely known cryptocurrency token out there. Whenever someone mentions cryptocurrencies, typically, the first thing that comes to mind to a lot of people in Bitcoin (BTC).
This means that Bitcoin, by default, benefits from what is known as the networking effect, which essentially means that the more people that own Bitcoin, the more people will want to own Bitcoin.
It is seen by many investors as “digital gold.” Additionally, due to the fact that Bitcoin has a fixed supply, which is capped at 21 million, there will come the point in time where no new BTC tokens can be mined, which will lead to scarcity and an increase in overall value.
Mass-Adoption of the Bitcoin Cryptocurrency
Bitcoin is a cryptocurrency token that has already become legal tender in El Salvador, a country in Central America, and is going to become an adopted currency in Lugano, a city in Switzerland.
Furthermore, major payment processors such as PayPal have already started enabling users to store and use the Bitcoin (BTC) cryptocurrency token, and there are many vendors out there on a global scale that are starting to accept Bitcoin as a payment method.
The Excitement Surrounding the Volatility of Bitcoin
Many investors have linked buying BTC with the excitement of its volatility. Checking the price of the BTC on a daily basis is an activity that almost never gets boring due to the fact that there is something consistently being developed or shifted within the world of crypto.
This means that you can check the value of Bitcoin 10 times a day, and it will always be different to some extent. The rapid price swings in either direction of Bitcoin provide a high level of excitement for a lot of investors. As a result, especially day-traders that want to dive in on the token while it’s lower in value, only to sell it later on once its value increases.
Long-Term Potential of Bitcoin
Bitcoin has been used as an alternative way through which people can send value on a global scale without the need of central authorities, such as banks or similar institutions.
This fundamental functionality can scale over time and could potentially even replace the financial institutions we know today, although this could take a lot of time.
In any case, the more people that jump into Bitcoin, the higher its demand, and as a result, the value will go, which is one of the key incentives for a lot of investors.