(Newswire.net — August 8, 2021) –Bitcoin and other cryptocurrencies have made significant headlines in recent years. Bitcoin, considered by many to be the most popular and sought after digital coin in the world, has risen as high as nearly $60,000 per unit. The ascent in Bitcoin has been very substantial. The coin was valued at just $4,000 a couple years ago until it underwent a meteoric rise that saw it climb rapidly to $20,000 before pulling back. The last run higher in the currency saw it nearly reach the $60,000 before pulling back substantially. The next rise could potentially see the currency hit $100,000 or even higher with some analysts suggesting it could reach as high as $300,000 in the next year.
Investing in Bitcoin may have several key benefits that investors should consider before putting their capital at risk. Below are three highlighted reasons to invest in Bitcoin and why they may affect the price of the currency:
Higher Prices
Needless to say, one of the biggest reasons to consider an investment is to make money. Those who purchased the currency at less than $4,000 have made a heck of a return, possibly selling as high as the $50,000+ range. There is no telling how high Bitcoin could eventually get, although numerous analysts have suggested that it could reach over $1 million per unit. If that proves to be the case, the currency has a lot of room to run higher from recent levels which have seen the currency valued for around $40,000 U.S. Dollars.
Inflation and Currency Hedge
As inflation has continued to rise in recent months, it is becoming an increasingly scary topic for investors. The threat of higher prices for everyday goods and services can not only erode disposable incomes but may also cause net investment returns to decline. It is important, therefore, for investors to own assets that may not only not erode in value but may even increase in value during periods of exaggerated inflation. Unlike paper dollars or currencies, the value of Bitcoin cannot be manipulated by central banks creating more of it out of thin air. Given the maximum amount of Bitcoin available, the currency may at some point reach sharply higher price areas from recent levels with or without rising inflation.
Unregulated With No Central Authority
The dollar is controlled and maintained by the Federal Reserve. Other fiat currencies are also controlled by their corresponding central banks and governments, allowing them to be manipulated to suit the needs of the government. Bitcoin, on the other hand, is not issued or maintained by any government or central bank. It is controlled by its users. This makes the currency appealing for several reasons with the primary one being its lack of manipulation. Unlike paper currency, central banks cannot magically create more of it out of thin air on a whim, eroding its value and purchasing power in the process. This may allow Bitcoin to maintain its value over time, while paper currencies have shown, throughout history, to lose value with the passage of time.