With the value of Bitcoin expected to peak at $10,000 in the coming months and recent events that led to the value of the cryptocurrency more than doubling from $4,000 to $8,000 between April and June 2019, many investors are beginning to consider purchasing Bitcoin as a store of value. The traditional school of thought says that gold and other resources are the most suitable store of value because they will always be valuable. However, there are many analysts and Bitcoin proponents who could counter with some interesting points of their own. For starters, here are five reasons why Bitcoin might just be a great store of value after all.
1. Bitcoin Derivatives are on the Rise
There are many ways to invest funds into the Bitcoin industry and, once your funds are stored in BTC, they can be invested into a variety of derivative accounts to generate a stable and gradual return over the years. For example, Bitcoin derivatives such as contracts for difference (CFDs) have become fairly popular with astute investors in the past couple of years.
2. It Was the First Decentralized Currency
Bitcoin might seem like an odd techy phenomenon for those who aren’t aware of its origin, but once you realise that it was literally the first of its kind, then it becomes easier to believe the notion that it might be around to stay. The concern with using Bitcoin as a store of value has always been that the currency might not last or hold its value many generations into the future, but since Bitcoin is the original currency that led the way into this age of digital money, it will probably remain as the foundational platform of that economy indefinitely.
3. The Future of Money is Digital
While cash will still be accepted for quite some time, within the next decade the vast majority of people will be buying and selling items digitally. It’s hard to imagine a world where digital currency is worth more than gold, but if you compare one ounce of gold to a single Bitcoin, that’s essentially what we’re seeing happening in the markets today.
4. Worldwide Usage and Acceptance is Practically Imminent
The usage of cash worldwide has been declining while the adoption of digital currencies like Bitcoin have been increasing rapidly. If this trend continues, the value of Bitcoin will continue to rise with the demand and anyone who stored their money in BTC early on will have amassed a large fortune.
5. The Value is Still Climbing
Of course, any good store of value should become more valuable or at least hold its value over time. Since the demand for Bitcoin is likely to continue increasing, the value will most likely continue to rise as well.
Incorporating Bitcoin Into a Well-Rounded Investment Strategy
Ultimately, it’s never wise to put all of your eggs into one basket, so Bitcoin should be used as a part of an overall strategy that also incorporates precious metals, managed funds, stocks, and other investments.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.