Why Is Bitcoin A Good Investment in 2022

During the launch of Bitcoin, cryptocurrency was considered a supplement to traditional forms of payments. However, it became more than just any other digital asset. Today, it has become a mainstream adoption by several industries. 

Moreover, being a volatile currency, it has witnessed several ups and downs. This makes investors and newbies arduous to believe it is a good investment in 2022. That is why we have come up with an article that will provide you with some valid reasons to buy bitcoin this year. 

Why Is Bitcoin A Good Investment In 2022?

Has High-Adoption Record

According to reports, about 44 percent of Bitcoin users have incurred tremendous profits out of it. 2021 and 2022 are considered years with massive growth in the adoption of this cryptocurrency. However, recently, the negative coverage by media publications concerning its volatile condition has made it quite arduous for investors to believe in this cryptocurrency again.

Have Permanent Rules

Even if new coins are mined and added to the circulation supply regularly, it will never cross Bitcoin’s 21 million market cap. It is a permanent rule of this digital asset. It cannot be changed by anyone. It is in contrast to all the world government’s rule. It means that it is not regulated by the government, banks, or companies. Hence, it is definitely a good investment to look for in 2022. 

Effective Inflation Hedge

In the coming years, both the global economy and financial market are anticipated to encounter massive inflation. It can make people look for effective hedges to protect their money and also store them as valuable assets. The popularity of Bitcoin has made it a digital gold, thereby becoming a sturdy hedge against inflation.

Scarce

The significant rise in the value of Bitcoin is due to its scarcity. Cryptocurrency market only contains 21 billion Bitcoins. If it is distributed equally across all the people around the globe, then there will be 0.0023 BTC for every person. And if you own more than this amount of Bitcoin, you will have more than any people have, making it a good reason to buy this currency. 

Decentralized 

Bitcoin is a decentralized cryptocurrency. Here, investors are subjected to their own security, which as a result, provides them with more autonomy and control over their money. It is because the price is not linked to any kind of government policy. Also, since it is not regulated by any centralized government, it remains stable during national crises as well.

Uncensorable

The decentralized nature of Bitcoin makes it uncensored. One example is when Chine banned cryptocurrency and mining farms in 2017, the network still remained alive. Therefore, holding this cryptocurrency is like holding a store of value that cannot be taken from you. 

Secure

Since it is a digital currency, it is impossible for thieves to get their hands on it. However, crypto scams are the most talked about problem in this market. To overcome this issue, bitcoin provides proper security to investors to keep their investments safe and addresses secure. 

Uses Lightning Network

This digital currency has deployed a lightning network, which makes its prominence and significance even more visible. It is the most appropriate solution for making Bitcoin more scalable and faster. 

Incurs Low Transfer Fees

Making payments internationally is not only time-consuming but also very expensive. The transfer fees range from 3.5 percent to 10 percent and take days to get processed. This cryptocurrency too incurs fees. And it can also increase with an increase in the Bitcoin value or heavy use of the Bitcoin blockchain. But, it is lower than the price incurred by several foreign transfer institutions.

Positive Development Of Regulation

In 2010, Bitcoin regulation was non-existent. However, the rise in the use of Bitcoin made it well-accepted in the market. This arouses the belief of an increase in the popularity of Bitcoin after coming out from the bearish slum. It is also anticipated that bigger institutions will use this currency instead of traditional fiat currencies.

Conclusion

If you are looking for diversification, Bitcoin is the best choice for you. It is and will rule the market in the coming years.