A lot of crypto fans and investors are now worried about continuous bearish trend for Bitcoin price and other cryptocurrencies this year 2018. And now beginning to doubt their initial commitment to the Bitcoin ecospace. A lot of people have forgetting the core idea behind the invention of Bitcoin. Most of us have forgetting that Bitcoin was created to challenge the established FIAT system where money can be printed without control and no regards for inflation.
This is entirely not the fault of most of us but it is because of the Bull run Bitcoin has enjoyed so far especially in 2017 where price reaches as high as $20,000. We all got greedy and forgot about the initial ideals behind bitcoin. We all want to cash in the same Fiat currency bitcoin is trying to challenge. This in my opinion is one of the reason why bitcoin price fell this year. We do not fully trust the crypto space yet.
Bitcoin is here to stay and will remain dominant for the future and I still consider it as the most secured investment in this digital age after gold. Below are some of the reasons why I think Bitcoin is a safe investment
1. Bitcoin has already achieved mass adoption though this is subjective . A lot people will now accept bitcoin payment without worrying about how to exchange it.
2. Bitcoin is limited in supply , only 21 Million Bitcoin can ever be created. Out of which 4 million is already lost making it 17 Million.
3. Bitcoin remains dominant in the coinmarketcap with 55% of the entire marketcap
4. Bitcoin current price is still higher than what it is this same time last year
Please I will appreciate if anyone can add reason why they think Bitcoin is a safe investment.
I wouldn't say that it's the safest investment available in the short term, but I think that it's probably one of the most viable long term store of values that are currently being undervalued.
If you look at the characteristics of bitcoin, you actually see a lot of resemblance with another safe haven asset class which has been recognised traditionally, which is precious metals, especially in gold and silver which has been used as currency for centuries.
The defining aspects that make both precious metals and bitcoin good long term store of values, and thus I guess "safe investments" would be the fact that it is decentralised in terms of its supply as well as the hard limit on the supply.
Bitcoin holds an edge in terms of the actual profitability in the long run compared to gold, which has already been used for centuries, though. Since bitcoin's demand is still climbing as adoption grows, and there is still the same limit on the amount of coins that are able to be in circulation within the supply, it's honestly simple economics that bitcoin would be at the very least, an effective hedge against the inflation that takes away value from fiat currencies daily.