Why is It Worth Owning BTC? 3 Scenarios

2 min reading

Why is it worth having at least a fraction of Bitcoin? What are the long-term forecasts for this asset? In what cases it could be helpful?

Undoubtedly, a situation in which all people in the world would have at least one Bitcoin is unreal. Simple math rules it out because of the fact that the supply of Bitcoins is limited and equals 21 million coins. What is more, not all of the coins have been dug up at this point. Currently, there are 18 220 387 BTC coins in circulation. As a consequence of an increasingly difficult mining, the rest of the coins will be dug up in about 120 years.

A good thing is that every Bitcoin can be further divided into smaller units, the so-called satoshis. There is no need for the user to purchase a whole coin, then.

Security for a rainy day

Even though rapid fluctuations of the exchange rate are an integral part of cryptocurrencies, it is worth to remember that traditional money brings inflation issues with it and it is worth being prepared for a situation like that. Scenarios like that may, of course, seem quite pessimistic to you at first glance, but an incompetent management can indeed ruin the national financial system. The analogy here is, for instance, the situation in Venezuela, where hyperinflation absorbed Petro.

An asset such as Bitcoin has no central control point as it is a completely decentralized virtual currency. The governments, therefore, cannot directly influence it due to the fact that Bitcoin remains independent of state policy.

A great number of people, however, are leaning towards this particular cryptocurrency in crisis situations. While it is possible for the banks to block our account and deprive us of our livelihood, there is no possibility for them to freeze the BTC wallets. The only person who can manage the funds assigned to the wallet is the person owning a private key to it.

No limits

Because of the fact that Bitcoin operates on blockchain, it can be moved at any time of the day or night without any restrictions. To put it more simply, it can be sent from one end of the world to the other, all the time, while traditional financial entities like banks have a set timetable and  operate only on certain days and hours. It means that a customer can make a transfer only on business days. As far as Bitcoin is concerned, such restrictions do not exist, because the transfers are carried out without intermediaries.

Potential increase in value

As the supply of Bitcoins is limited, they do not undergo inflation. Moreover, due to an increasing mining difficulty and halvings, Bitcoin's value has great potential for growth.

The mechanism developed by Satoshi Nakamoto is designed to balance supply and demand. If all 21 million BTC were on the market at once, the value of a single token would certainly not be as high as it is now. Miners would not be as willing to verify transactions in the Bitcoin network as they are. Cyclical halvings eliminate this problem. The theory of Bitcoin deficiency has recently been very popular. According to the theory as a result of reduced supply the price of BTC will rise by the end of this year.

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