If you are a “hodler” for Bitcoin, it has not been an easy ride for you to keep the faith in cryptocurrency. Sure you may have your reasons overall of why you believe it’s a worth “hodling” when Bitcoin is experiencing a bearishdowntrend it is pretty easy for anyone to jump on the detractors’ bandwagon.
There are a lot of reasons why detractors are claiming Bitcoin is going to crash. They say it’s a scam that’s bubble burst in January 2018. It’s unregulated, and they are telling everyone that government regulations will eventually shut it down as they become stricter and enforce them.
They say that it’s a Ponzi scheme that is going to crash so fast and so hard it will not be worth mining anymore, and everyone is going to lose their money. The list goes on and on.
However, for every detractor, there is a faithful “hodler.” There is more to Bitcoin than meets the eye to people that don’t understand the space. Bitcoin was founded right after the infamous 2008 banking crash.
This crash proved that the government regulating bodies were not capable of effectively managing the value of fiat currency. They let it get out of hand to the point that it crashed. During this time when the stock market and real estate were crashing, people started turning in droves to hard assets.
Here are five reasons why people are still bullish on Bitcoin.
1.) Known Limited Quantity
The price of gold went up immensely. Everyone wanted to be able to turn to something that was independent of government control in regards to its value. Sadly, small central groups that make decisions for the majority don’t always make the best decisions for the larger group. Bitcoin was developed as a way for people worldwide to be able to hold something that would be decentralized and immune from government’s influence on its value.
There are only 21 million Bitcoins in existence. This total means there is not an unlimited amount available that will enter circulation at the whim of a tiny few. What this means there is known scarcity of units something that carries a monetary value, this is very similar to gold whose value dramatically. The known limited quantity alone gives Bitcoin value, it’s something that is insurance against fiat currencies worldwide.
2.) Easy to Transfer
Bitcoin is the only form of money that can be transferred from anyone to someone else anywhere in the world in less than 30 minutes. There isn’t a third party that needs to get involved with the transfer, like a bank for example.
You don’t have to worry about bank holidays preventing the money transferring right away. Also, you don’t have to worry about converting one currency into another currency. Right now you don’t have to both with the different countries’ money transfer laws, and you can send it directly to the recipient without the hassle of dealing with the various regulations.
Right now Bitcoin is the most liquid out of all of the cryptocurrencies as far was liquidity. It has the highest trading volume and highest value. When something has a lot of value and activity, it is easier to liquidate. It also serves as the primary on-ramp to trade and purchase altcoins, because Bitcoin has the most fiat onramps available. Since it has the most fiat onramps, this also makes it the easiest to liquidate into local fiat currency.
4.) Largest Decentralized Network
Bitcoin has the largest decentralized network out of any cryptocurrency available. This large network size makes it the hardest cryptocurrency network to penetrate for malicious hackers. It also makes it harder for centralized mining groups to get enough computing power to take over 51% of the network.
This extensive network size also safeguards Bitcoin from the corruption of a tiny group of few controlling a system for the masses. Decentralization helps promote the honor system for people to manage and regulate the transactions. So it’s less likely to be susceptible to corruption.
5.) Hard to Counterfeit
With the decentralized network that connects to one universal ledger that records each transaction and is publicly available to everyone on the blockchain network, this transparency makes it hard to counterfeit. It also prevents the double spending problem that other digital transactions can’t as easily prevent from occurring.
When something is easy to counterfeit, it brings its value down. It’s hard to verify the authenticity of something if it’s easily counterfeited and more of it could end up in circulation which devalues the rest of it.
So this is the list of five key reasons some people are bullish for Bitcoinduring this bearish time. The future is still unpredictable for the value of Bitcoin. However, there is an undeniable need in the market for a simplistic, secure and digital way to transfer and store money.