Why is it worth to hold Bitcoin? 3 scenarios

By
Tokeneo
-
2 min reading

Why is it worth to have even a fraction of Bitcoin? What are the long-term forecasts for this asset? When can it be helpful?

bitcoin piggy bank

Of course, a situation in which every person in the world would have one Bitcoin is unrealistic. Simple mathematics will tell you that. Bitcoins have a limited supply of 21 million coins. Not all of which have been excavated yet. Currently, 18 220 387 BTCs are in circulation. Due to the increasing difficulty of extraction, the remaining coins will be mined in about 120 years.

Fortunately, each Bitcoin is divided into smaller units, the so-called satoshi. The user does not have to buy it in its entirety, because he can buy a part of it.

Black-hour security

Although strong price fluctuations are an integral part of the cryptocurrencies, we must remember that traditional money is subject to inflation. So it is worth being prepared for such a situation. Although such scenarios may seem quite pessimistic at first glance to you, mismanagement may lead the national financial system to ruin. An analogy becomes here, for example, the situation in Venezuela, where hyperinflation has absorbed Petro.

An asset such as Bitcoin is deprived of a central control point. It's a completely decentralized virtual currency. Therefore, governments cannot directly influence it. Bitcoin remains independent of state policy.

In crisis situations, many people are leaning towards this crypto. While banks can block our account and deprive us of our livelihoods, they are unable to freeze their wallets on Bitcoin. Only a person with a private key can manage the funds assigned to him/her.

No restrictions

Since Bitcoin operates on a so-called blockchain, it can be moved at any time of day or night without any restrictions. This means that it can be sent from one end of the world to the other, not just on working days.

Traditional financial entities such as banks have a fixed schedule. They only operate on specific days and hours. This means that their client can only make the transfer on working days. In the case of Bitcoin, such restrictions do not exist, as transfers of value take place without intermediaries.

Potential increase in value

As the supply of Bitcoins is limited, it is not affected by inflation. Moreover, due to the increasing difficulty of mining and halving, its value has great potential for growth.

The mechanism developed by Satoshi Nakamoto is designed to balance supply and demand. If all 21 million BTCs were to appear immediately on the market, their value would certainly not be as high as it is now. And the miners would have no incentive to verify transactions in the Bitcoin network. The Halvings taking place cyclically, eliminate this problem. Recently, the Bitcoin deficiency theory has been very popular. It says that due to a decrease in supply, the price of BTC will increase by the end of this year.

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