Make Bitcoin Your 2021 New Year Resolution
It is the end of 2020 and Bitcoin is above 22k. It has been working hard, convincing skeptics and converting institutions. The latter of which went into a FOMO frenzy with news of increased demand from institutional investors driving the recent rally. But why should you enter 2021 with Bitcoin in your portfolio? Here are 11 reasons why.
BTC will become more expensive
Fact — This might be your last chance to get Bitcoin at this price. A year from now, you will look back thinking wow, $23k is cheap. In two Kraken Crypto Sentiment Surveys, composed mostly of traders and investors, the majority called for an average bitcoin price target of $36,000 next year. Turns out Bloomberg keeps a close eye on the bitcoin market too. In their latest BTC report, they have Bitcoin projections priced upwards of $50,000 in 2021, citing “Foundations are firmer than in 2017.”
Not a gamble; It’s an investment
Eleven years since inception, Bitcoin has proven to be a profitable investment. While price instability has definitely led to huge fluctuations (most notably in 2017–2018), Bitcoin’s overall trajectory is upward. In other words, if you keep it long enough, the chance of value appreciation could be greater than any other asset class in the past 11 years.
Digital gold is better than gold
Bitcoin = digital gold. The oldest cryptocurrency was given the term because the public needed a benchmark. But now is the time for Bitcoin to surpass gold. It is a global currency that is not governed by any government or agency, is difficult to extract, and exists in a diminishing supply that enhances its value. It is not prone to inflation and handling is much easier than that of gold- all you need is a virtual wallet. In many ways, not just price, Bitcoin trumps Gold.
Bitcoin doesn’t need to prove itself anymore
According to Paolo Ardoino, CTO of Bitfinex, “Bitcoin’s ascent above US$20,000 is yet another milestone in what has been an epic year for crypto,” Ardoino told news.Bitcoin.com. “But the main story is not about speculation or trading. Bitcoin represents a monumental technological shift, the consequences of which are only just beginning to be seen. Critics should take heed of the quiet dedication of those building layers upon this technology that will change the very nature of money by the end of this decade.” Enough said.
Bitcoin doesn’t answer to other markets
Bitcoin is independent of every other sector. When exchanges do collapse, BTC will not be affected. We have seen Bitcoin decouple from the S&P 500 several times in 2020. The very fact that Bitcoin is the solution to its own 2018 crash shows that it could be the one to save us during the next one. Not forgetting its ability to diversify from assets fully dependent on banks.
Buy it before regulators step in
Bitcoin is decentralised. This implies that the network is self-governed. No one can ban or restrict Bitcoin. But as popularity grows, there may come a time when governments may start to impose restrictions or limitations, so be sure to stay up-to-date with policies in your country and make a decisive choice.
Your Bitcoin is your own
It can’t be confiscated. Unlike any savings or assets held, the government cannot confiscate or freeze Bitcoins in custody. Just don’t lose your key. How many other things in your portfolio can you truly call your own?
Bitcoin opens doors
Bitcoin was developed as a way for people to gain control over their own economies. Its nature motivates a thirst for information. Bitcoin makes us wonder why we have to settle for fiat. It makes us want to learn how blockchain works, and why it is important for a financial revolution. As the posterboy of a new asset class, it ushers us to other cryptocurrencies. After all, bitcoin is the future of money.
Blockchain is on the rise
Blockchain technology is being experimented by more and more well-known enterprises, global interests, and banks. Who knows — Soon Paypal might be offering altcoins (like Ethereum)? As the advantages of blockchain technology outweigh the disadvantages, businesses such as Visa, Fidelity, and Square are starting to incorporate crypto solutions. Bitcoin will be your gateway and liquidity to these opportunities.
Bitcoin is better than holding money
Fiat who? Inflations rates are on the rise and yearly interest rates are becoming a recurring joke. We now live in a world where physical cash just weighs us down. Come to think of it, you never have to worry about long queues in the bank anymore.
Bitcoin could be the best thing to happen to you
With less in circulation and a sturdy track record to boost, making Bitcoin your 2021 resolution will be a good financial, motivational and enlightening move. 2020 was nothing but gloomy. Kickstart the new year by setting your sights on the future. Do the necessary research. If you don’t own a BTC yet, maybe start working on it by dollar averaging. Find the right exchange. Start planning your 2021 New Year resolutions early. Do yourself a favor and stop hoarding cash.
Written by Cory Pang
