Bitcoin is a financial revolution that stands in the face of inflation. How is that?
Investing in cryptocurrencies has become very popular in recent years, and it is clear that the currency Bitcoin It occupies the largest area of the limelight, with the highest market capitalization among other currencies, the largest infrastructure, the longest track record, and the most decentralized.
Accordingly, we will review below the most important features that we can find in investing a currency Bitcoin The first is that the currency represents a financial revolution, and then the flexibility it provides, whether it is a small or large investment.
Bitcoin as an Investment Revolution
Shortly after the release of .'s white paper, Blockchain Bitcoin in a year 2008 People were mining cryptocurrency using their home computers.
They felt that this new currency would be in demand at some point in the future, without anyone believing that its value could reach the extent it is today.
Along the way, others started investing in the currency Bitcoin As a form of hedge against government oversight, and “escaping” the power of very powerful banks.
The argument that cryptocurrency constitutes an investment revolution is that when governments and fiat banks fail or fail, we can rely on Bitcoin.
With the currency completely decentralized, central banks would not be able to set value, possibly manipulate it, or restrict remittances.
While this may not represent a great need in the United States and most of the developed world, this value can be seen in countries where the government may routinely devalue its currency to pay off national debts, or limit bank withdrawals, where we have seen relatively recent examples. On it in Turkey, Argentina and Nicaragua.
Bitcoin as an aggregate investment
can look at Bitcoin Here as a store of value, the idea behind this is that due to the rise in inflation due to the increase in the supply of paper currency, the value of Bitcoin It will rise significantly, due to the constant supply of cryptocurrency.
The printing of paper money in the United States, and in most parts of the Western world, has resulted in a pandemic COVID-19, to accelerate the potential for inflation, as we've seen trillions of additional dollars created and pumped into the economy.
So how to keep a coin Bitcoin To be a way to hedge against inflation or as a store of value?
Let's say I could hypothetically buy a loaf of bread for $1 today. In a year, what if this loaf of bread costs me 1.05 dollars? This means that we have an inflation rate of 5%. It happens because more dollars are pumped in, without the equivalent of bread added.
So I can keep my dollar in currency Bitcoin, and within a year I suppose the price of a coin Bitcoin My Bread will rise at least by the same value as the Bread, so, if I need to buy Bread, I can sell the coin for 1.05 at least a dollar.
This investment can be extrapolated to the entire global economy, and we can see why the macro investment giants want to allocate 2% –5% of their property to Bitcoin As they see inflation coming, they want an asset of limited supply, which will increase in value over time, unlike the dollar.
Bitcoin as a Small Investment
Small investments come to individuals, based on their limited time horizon, unlike institutional investors, and this matter will vary from one investment to another, depending on the need.
For example, if the investor is in his early forties, his investment will be in a currency Bitcoin driven by the impact of inflation on his pension fund.
The bottom line:
would learn more about coin Bitcoin, will mean finding the reasons for the investment, and keeping it as a large or small store of value, and the study of the above-mentioned elements carefully, will allow you to plan your financial life in a way that ensures a relatively minimum risk, which may be carried by any financial investment in the future.
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