Is Bitcoin (BTC) a Good Buy ?
A group of individuals going by the pseudonym Satoshi Nakamoto introduced Bitcoin to the world in January 2009, just after the Great Recession had ended. One of the main goals was to establish a type of money that is decentralized and censorship-resistant. Since government borrowing, money printing, and quantitative easing were all about to begin in 2009, it’s easy to see why people would want to use Bitcoin.
If Bitcoin becomes a genuine store of value, like “digital gold,” then its bull argument is strongest. The total value of the world’s gold reserves is estimated at $12.5 trillion, so even if Bitcoin just accounts for half of that, it will be a huge success. Furthermore, Bitcoin is preferable than gold since the crypto is readily divisible, portable, and transactable, which gold does not have.
A more long-term perspective is worth considering, even though some opponents claim that Bitcoin has not been an effective inflation hedge lately. Adopting this point of view helps to present a more accurate image. The price of an ounce of gold has risen by 36% during the last five years, whereas the value of a Bitcoin has risen by 734%. There is little doubt that, despite its soaring volatility, the latter has fared much better in terms of gaining buying power.
Many proponents of Bitcoin predict that it will one day become a worldwide reserve currency. In industrialized countries like the United States, where banking institutions and payment infrastructure are well-established, this concept may appear absurd, but in developing countries like the Philippines, this notion makes perfect sense! Those living in nations where hyperinflation has been a problem may choose to keep their money and conduct transactions using Bitcoin.
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