Bitcoin just recently crossed the $10000 USD mark. This is a massive psychological barrier that has seen a lot of widespread mainstream attraction for the coin. In this post I will discuss why I think everyone should hold some bitcoin from as little as $100 to whatever is justified based on your risk tolerance and investment case.
To purchase bitcoin check out this link:
https://steemit.com/cryptocurrency/@banglasteve/how-to-buy-cryptocurrency-in-australia
Anyone interested in the latest news in the crypto-sphere feel free to join my FB group: https://www.facebook.com/groups/cryptoladsinvesting/
REASON 1 - Network Effect
If you have ever heard of MetCalfe's Law - think of the internet. Essentially the law states '
'that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n^2).' Let that sink in for a moment.
Often people are quick to dismiss bitcoin stating it is too complex and difficult to understand. The way I like to think of it is that majority of this world knows how to send emails. Sending bitcoin is almost identical. You have an address you double check and you send it the same way. Thank you internet banking for breaking down these barriers. With more users the use case of bitcoin is expected to increase and MetCalfe's law is the perfect way to explain this.
Those that think you need a whole bitcoin to participate. Just know that bitcoin is divisible to the 8th decimal place. In other words you can buy a small portion with even $10.
REASON 2 - Real World Use Case
If any of you have ever seen the sign 'bitcoin accepted here'. It means what it says and bitcoin actually serves the purpose of buying goods and services. Microsoft has opened up its doors to bitcoin payments and slowly but surely many other merchants and businesses are willing to accept bitcoin. Let's not forget the first ever transaction of 10,000 bitcoins for 2 Papa Jones pizzas.
If bitcoin receives international recognition and adoption it will also make payments almost borderless. You don't have to worry about cash exchanges as you can move around with bitcoin. Japan is one of the world leaders in bitcoin adoption. Hopefully more countries follow suit.
REASON 3 - Financial Freedom
If you hold your bitcoin in a wallet whether desktop or mobile or hardware and 'control your private keys'. You own your money. No one other than you has access to those coins on the network.
One way to make a comparison is that any money owned in a bank account is technically owned by the bank. The bank has an obligation to you to provide you with the funds deemed as 'yours'. If you think that banks can't ever take ownership of your money - look at Greece. Bitcoin gives you financial freedom to break away from the 'banksters'.
REASON 4 - Assymetric Risk and Technological Innovation
Bitcoin at this current point in time has more upside risk over the next few years than downside. This is because we are I feel transitioning from the early adopters phase to mainstream adoption. If the network effect holds true. The value will keep increasing along with adoption. These two things are price drivers and are most likely to reward much more handsomely in a low interest environment.
What is most powerful about bitcoin is that over the past 9 years it has truly demonstrated the power of blockchain technology. Blockchain is what makes bitcoin powerful. Essentially think of it as a record book for all transactions that can be publicly viewed. This can start getting technical but the main innovation is that you can't cheat the blockchain and it establishes a new system of 'trust' in the finance world. After the Global Financial Crisis in 2008-09 we can all agree 'trust' and 'honesty' are the two evils our financial system lack.
REASON 5 - Financial Revolution
I have heard that every 40 years there is a change in money/currency. In 1971 the Gold Standard (hold back dollars) was abolished. It seems fitting that a new form of money now be explored. Bitcoin has the potential to be a universal currency now and the US dollar has real potential to be dethroned from its status as the worlds most widely used currency.
My thoughts are that it doesn't hurt to dip your feet in. It might get wet and for all we know bitcoin can half from here in value overnight. But what if it doubles? Or saves you in a crisis situation. Just read about the Venezuelan currency crisis.
I hope you guys enjoy this post and it helps educate you about the power of bitcoin. Yes it is volatile and has some scalability issues however with the growing adaption and infrastructure through lightning networks/atomic swaps these can be addressed.
Cryptoshaf
FREE BITCOIN GENERATING FAUCET: https://freebitco.in/?r=5345367
Alternate coins FB page: https://www.facebook.com/groups/AltcoinInvestingGroup/
DISCLAIMER: Everything stated here are my opinions. Always invest with money you can afford to lose and do your own research - these are VERY risky investments. A lot of groups and people will misguide you so be sure you know what you are doing. Always remember all these investments can erode significantly in value as these are VERY volatile markets.
Bitcoins is being more and more widely used by people and the every growing news is just going to make the value increase even more. Thats just my take on bitcoin price
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit