Bitcoin’s dominance in the crypto world is unshaken, and while the news media continues to say that BTC is dead—it’s died 477 times, after all—it continues to be the best-performing asset of the decade.
Thinking about investing? Wondering why Bitcoin is up today?
Here are five reasons to buy BTC before summer:
1. Limited Supply, Increased Demand
Bitcoin is a new deflationary asset—the best of its kind. Only 21 million Bitcoins will ever be produced, solidifying it as the scariest asset on planet Earth.
Unlike fiat currencies subjected to inflationary pressures, Bitcoin’s scarcity is a driving force behind its value.
“I do not think it is an exaggeration to say history is largely a history of inflation, and usually of inflation engineered by governments for the gain of governments.” — Freidrich Hayek, Good Money
Wall Street giants BlackRock and Fidelity have launched new Bitcoin ETFs, attracting over $30 billion. This demonstrates that as adoption increases and faith in Bitcoin grows, its value will likely continue to rise.
2. You’re Always Losing to Inflation
“My dear, here we must run as fast as we can just to stay in place. And if you wish to go anywhere, you must run twice as fast as that.”
The Queen of Hearts told that to Alice. She’s right.
All things tend toward disorder as defined in the laws of thermodynamics. It’s straight entropy, meaning if you’re not getting better, you’re getting worse.
Staying ahead of the inflationary curve is like sprinting on a treadmill to grab a delicious cupcake with sprinkles. Unfortunately, the cupcake is always just out of reach.
The $USD is f*****
Inflation will sky harder.
$220,000 #Bitcoin in play. pic.twitter.com/4NXwxFZlOP
— Max Keiser (@maxkeiser) May 18, 2024
History teaches us that two things happen to countries that allow the money printer to go wild: 1) Hyperinflation 2) A new currency usurps it like Bitcoin (BRICS and CBDCs or also in play)
3. Don’t Trust. Verify
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.”
Satoshi said that. Bless that man, or time-traveling Martian, whatever he may be.
Bitcoin doesn’t rely on trust, it relies on verification. The blockchain with the most proof of work is verified by miners incentivized to act justly in Bitcoin’s network.
While the system isn’t completely trustless, as we rely on the developer’s code, SHA-256 security, and the miners to continue working for their incentives, Bitcoin is still the most trustless financial system to date. It’s the best we have without creating an entire system ourselves.
“If you wish to make an apple pie from scratch, you must first invent the universe.” — Carl Sagan
4. Institutional Adoption
Over the last decade, major corporations, financial institutions, and asset managers have increasingly adopted Bitcoin as part of their investment portfolios.
For instance, Tesla allocated $1.5 billion to Bitcoin, and PayPal has started offering crypto services on its platform.
5. Long-Term Value Proposition
Despite short-term fluctuations, BTC has consistently demonstrated resilience since its release in 2009. Its long-term value proposition attracts new users, developers, and investors.
Technology is exponential. BTC will also follow a parabolic trend; although less than 2% of the world owns Bitcoin, it’s sure to see an exponential increase as we dig further into our tech rabbit holes.
The information provided by International Business Times is for informational purposes only and should not be construed as financial advice. Always consult with a qualified financial advisor before making any investment decisions.
