{[{item.pair.split("_")[0]}]} ${[{item.price.toFixed(4)}]}

{[{item.change24}]}%

{[{item.change24}]}%

The Only Assets Worth Holding Long-Term: Bitcoin. Here's why

Bitcoin

September 22, 2020 | 

1305 Views | 

JOHN K MWANIKI | 

Get Into Cryptocurrency Trading Today

Bitcoin is the only asset worth holding long term. It has had some stable growth patterns and looks to keep to it. 

This guide looks into why Bitcoin is the perfect asset

Bitcoin works perfectly as a safe haven

The role of Bitcoin as a safe haven has been on the discussion for the longest time. Most crypto enthusiasts believe the coin is worth holding as a hedge against the fiat. The analysts tie such success to the Bitcoin's firm monetary policy. 

As a new currency, Bitcoin must first gain the trust of the users. It earlier had a challenge due to the high volatility. While the talks on working as a safe haven were rife, users were still not sure of the viability. It, however, became apparent following the effects of Coronavirus.  

The fiat economy is trading some of its lowest since the 2008 economic crisis. Most of the stocks are down, only relying on government stimulus. It is different for Bitcoin, which is so far having a productive financial year.

Most people are moving online. The digital space is becoming the most used, and Bitcoin is gaining from the trend. Most people are looking to Bitcoin as the most viable investment. It is likely to gain even more as the technological world thrives. 

Bitcoin Scarcity and Network Effect 

The supply of any currency determines its value. Too much supply can lead to a high rate of inflation, while too low supply leads to economic frictions. It explains the importance of monetarism. It is the macroeconomic concept that ensures the proper money flow in the economy. 

In the fiat currency, the government is the controller of the money supply. They print money is based on inflation rates. This is different from Bitcoin, which operates as a decentralized system. 

Bitcoin has no single entity that controls the supply. It also has no backing by a single commodity to affect its value. 

Bitcoin instead operates as a peer-to-peer monetary system. Unlike in printing fiat money, Bitcoin is mined. It has encryption on the blockchain technology. Different parties then compete to solve arithmetic puzzles on the blockchain. They gain rewards for every successful puzzle. Verifying the transactions helps secure the blockchain.

In the beginning, mining was for anyone, as long as you had a decent computer. The demand soon went up, and only GPUs could do it. It is now a reserve for special mining machines. These machines are expensive and power-intensive. It means Bitcoin mining is now a reserve for a few miner companies who can afford to purchase and operate the machines. This leads to scarcity.

also has a fixed maximum supply of 21 million coins. Not even the founder, Satoshi Nakamoto, could add to this limit. It means an increasing demand does not come with a corresponding supply increase. That is where Bitcoin draws its value. 

Bitcoin Strengthening Market Share and Stability  

Bitcoin started as the first digital currency. By then, nobody had envisioned competition for the fiat currency. It has, however, kept on growing over the years. At first, most users were sceptical about the viability of digital currency. It was only a matter of time before Bitcoin fell.  

Bitcoin has instead, over the years, gained market traction. It has gained massive market share while strengthening value. Several other cryptocurrencies have come after Bitcoin. Others with newer technology and concepts. They, however, all work on the premises of Bitcoin technology. They all want to be in the position of Bitcoin. 

Bitcoin has kept its position as the leading crypto-currency. It is ahead of competitors like Ethereum, Ripple, and other altcoins. 

Bitcoin has picked up a more mainstream role. It has a reliable monetary ecosystem, operating like any other fiat currency. 

There are several Bitcoin ATMs to access the currencies as you would fiat. The rise of Bitcoin exchanges, wallets, and other Bitcoin apps shows an increasing market share. Most retail stores are also accepting Bitcoin as a payment method. 

Although Bitcoin has become more stable, digital money is still a volatile asset. It, however, has a defined market movement. It is never affected by any other economic occurrence except by its demand and supply curve. 

The Rise of The Institutional Investors in Bitcoin 

The value of an asset depends on the investors. Bitcoin is starting to attract institutional investors. Most of these investors are long term. They have in-depth provisions guiding their investment choices. They also never want to risk the investors' money on anything not promising value.  

The institutional investors had avoided Bitcoin, albeit they are now picking it up. They have charters that prevent them from investing in virtual currencies. The entry of Grayscale Bitcoin Trust has made investing in crypto for the companies easy. It allows them to purchase Bitcoin like any other over the counter shares. 

The increased appetite for Bitcoin by institutional investors is a future indicator. The law of demand and supply works with Bitcoin. The significant money interest results in a considerable market. It comes with increased trade, leading to better values. 

The prospects have been even high, with companies looking for Bitcoin as the central reserve. MicroStrategy, a wall street company, bought over $250 million of Bitcoin. The company has always got it right on predicting the future of investments.

MicroStrategy was one of the first companies to usher in the mobile wave in 2012. It has now turned 60% of its reserve to Bitcoin. It is an indication that the prospects of Bitcoin are high. Other companies will follow MicroStrategy. Soon enough, it will be a trend of firms turning to Bitcoin as the reserve asset. 

Bottom Line 

A long-term asset is all about security and future growth aspects. Bitcoin combines these perfectly. If you are looking for extended-term investments, nothing beats the coin. 

Buy & Sell Cryptocurrency Instantly

Did you like this article?

NEWS

COMMENTS (0)

CREATE ACCOUNT

Have an account? Login

LIVE RATES

ALL

TRENDING

Total Market Cap The Total Market Capitalization (Market Cap) is an indicator that measures the size of all the cryptocurrencies.It’s the total market value of all the cryptocurrencies' circulating supply: so it’s the total value of all the coins that have been mined.

{[{ marketcap }]} {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H) {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H)

Symbol

Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting all the data from several exchanges to provide the most accurate price available.

24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current price and the price24 hours ago.

Trade

{[{ item.pair.split('_')[0] }]}

Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

TRADE

Showing {[{ showing }]}

Symbol

Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting allthe data fromseveral exchanges to provide the most accurate price available.

24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current priceand the price24 hours ago.

Trade

{[{ item.pair.split('_')[0] }]}

Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

TRADE

Showing {[{ showing_trend }]}

WHAT'S NEW

NEWS

REVIEWS

BROKERS

WALLET