8 reasons why you should invest in Bitcoin in 2024 – Should you buy now?
In the cryptocurrency ecosystem, Bitcoin is constructed as an innovative payment network (IPN) or digital currency that assures security in online peer-to-peer transactions. It is assumed that Bitcoin will raise its price in cryptocurrency, which can increase the chances of adoption, global financial network, and new regulations.
Bitcoin (BTC) reached a high of $65,000 in 2021, boosted by a new US Bitcoin ETF and Tesla’s $1.5 billion acquisition. Despite Coinbase’s expansion and FTX’s bankruptcy, BTC reached $69,497.76 on March 16, 2024, down 6.45% from its peak of $73,900.40.
Should you buy Bitcoin? Here are 8 reasons why you should consider investing in Bitcoin.
1) Bitcoin as a Defense Against Inflation
During higher inflation, the purchasing power of consumers is reduced, and therefore, flat currency is required to purchase assets. Similarly, in the current scenario, one can buy more assets with bitcoin, but in the future, through bitcoin, more returns can be acquired. Thus, Bitcoin works as a hedge against inflation and is called digital gold. The limited supply of bitcoins and their hidden source code make bitcoin highly demanding by increasing the price of assets.
2) Safety and Security of Bitcoin
In Bitcoin, transaction security measures of Crypto Exchange Security have included protecting user accounts, two-factor authentication (2FA), secure storage of assets, KYC, and Anti-money laundering (AML) procedures. Besides, regular security audits and appropriate regulatory standards are being considered by using advanced encryption methods to protect data storage on the network. Cryptocurrencies such as Ethereum and Bitcoin are valuable and decentralized, meaning they are not controlled by a centralized body like the government. Cryptography ensures the anonymity of gamblers when transacting in cryptocurrency.
Using such flat currency like Bitcoin can retain the security and anonymity of gamblers in crypto casino games by providing a tamper-proof record and transparency for transactions. Consider a group of friends who love playing online Bitcoin blackjack. They decide to employ Bitcoin instead of regular cash in their game. The reason for this is Bitcoin’s decentralized nature, which is not controlled by any central authority, such as a government. This assures that their game is transparent and secure, thanks to the blockchain technology that Bitcoin uses.
3) Acceptance of Bitcoin in Businesses
As an alternative payment method, Bitcoin transactions are new in business and can increase the consumer base by accepting additional consumers who refer to payment in this mode. Business entities are investing millions to achieve higher returns in Bitcoin. However, the volatility of Bitcoin makes it challenging for businesses, which can cause new uncertainties and result in big losses.
4) Bitcoin as a Deflationary Currency
Bitcoin is reviewed as deflationary due to its limited supply and included with a deflationary measure of halving, which cuts down miners’ rewards. It incidentally affects the scarcity of Bitcoin and aspires to reduce the inflation rate over a limited period. The inflation rate of BTC has tended to reach 0, which indicates that the purchasing power of Bitcoin has grown over time.
5) Low Fees and Direct Transfer
The transaction procedure in Bitcoin requires lower fees than the traditional mode of financial transactions, specifically international transactions. Another advantage of BTC is its faster mode of transactions, as these transactions are potentially faster without including any intermediaries or convenience fees for authorization.
6) Institutional Adoption of Bitcoin
Institutional adoption of Bitcoin tended to improve with the development of regulatory clarity, which ensures incremental gains. Open interest in Chicago-based CME Group increased the demand for BTC by up to 44%. According to Bitfinex analysts, the potential interest rate will be reduced by the Federal Reserve in 2024, which will make it more attractive for institutional investors and enhance market involvement in the crypto ecosystem. The demand for ETF tracing raises its approval in the US, which opens wide ways for investors in crypto through traditional brokerage accounts and IRAs.
7) Regulating Bitcoin Could Potentially Boost Its Value
Potential regulatory improvement in Bitcoin can develop its security measurement, adding a way of securing financial transactions and maintaining transparency and resilience. Encryption ensures compliance checks in the transactions from authorized parties that promote trust. Besides, the programmability confirms smart financial contracts with its automatic execution without delving into third-party authorization, which increases its value.
8) Scarcity of Bitcoin
The limitation in bitcoin supply creates scarcity and encourages its higher value through adoption considering deflationary pressure, which provides long-term stability in the BTC market.
Conclusion
Apart from the new area of BTC and considering its market volatility, Bitcoin has a wider future of creating a revolutionary landscape in investment. The limited supply of BTC increases its demand, and lowering the fees allows buyers to buy more assets than traditional payments. Security and regulatory improvement have also given rise to the institutional adoption of BTC by allowing the buying of assets. So, answering the question “Should You Buy Now?”, it can be viewed that considering the 2024 growth rate, investment in BTC can bring back revolutionary returns if it is invested in speculated assets as it outperformed compared to every other asset.
