Should You Buy Bitcoin in 2024? Here Are 6 Reasons Why the Answer Is Yes

Those who enter the market at this time may be surprised to hear that Bitcoin was actually worthless back in 2009 when it was first introduced.

Those who enter the market at this time may be surprised to hear that Bitcoin was actually worthless back in 2009 when it was first introduced. However, according to data from Binance, at the time of writing, Bitcoin is trading at $61,793.88, which translates into a substantial growth of millions of percent, surpassing traditional assets like real estate and stocks.

Market analysts believe that it has a lot of upside potential, especially since Bitcoin isn’t just a digital asset but also a store of value and a medium of exchange. There are around 50 million users of Bitcoin, so naturally, you may also be interested in it. But as anyone else who’s just starting with cryptocurrencies, you may wonder whether it is the best buy in 2024.

Bitcoin is a risky investment, and you should assess your risk tolerance before you go on an exchange and add it to your crypto wallet. However, if you believe you can cope with the volatility involved, there are many reasons why Bitcoin remains one of the hottest assets to put your money into.

Decentralized nature

Decentralization is an essential element of the Bitcoin ecosystem, and it simply means that the digital asset doesn’t have any point of failure. No entity or organization can control the Bitcoin network – a notable difference from traditional financial assets that are controlled by central banks.

Financial institutions are centralized, so if they go bankrupt, this means that you risk losing your deposits. However, this is something to worry about when using Bitcoin, because you have full control over your wealth, and only you can access your wallet through a private key or a password.

Decentralization is also relevant if you want to buy BTC anonymously. Since there are no intermediaries involved, transactions can be completed without third-party approval once miners verify them.

Price Potential

One of the main reasons why Bitcoin attracts so many investors is the substantial profits it can offer. If you look at the numbers, it’s easy to notice Bitcoin’s tremendous potential – ever since it was launched in 2009, there are only a few assets that outperformed it.

In 2010, Bitcoin traded only at $0.10, and three years later, it reached highs of $250, translating into a growth of more than 250,000% for early investors. The stock market could never rival the gains that Bitcoin has provided to investors, which highlights its potential as an asset.

Bitcoin has gone through bearish cycles, and yet, its positive long-term trajectory makes it a reliable cryptocurrency. Of course, this doesn’t mean investors shouldn’t be strategic when investing, not at all – volatility levels can be higher compared to traditional assets, and it’s essential to mitigate possible losses by creating a well-balanced portfolio.

Fixed supply

Traditional currencies face a significant challenge: inflation, which increases the cost of living and is caused by central bank policies. When new money is created, the supply increases, devaluing the currency and weakening savers’ purchasing power. Over time, the value of traditional money reduces along with the increase in inflation.

Fortunately, Bitcoin solves this problem because its supply is determined by code, and central banks and governments can’t manipulate it. As a result, Bitcoin isn’t susceptible to hyperinflation. Moreover, Bitcoin has a finite supply, which means there will only be 21 million tokens ever.

Its finite supply means that Bitcoin’s price can appreciate in time, ensuring there will be constant demand for Bitcoin.

High liquidity

If you’re still wondering whether you should buy Bitcoin, here’s another of its benefits: The top digital asset operates in a highly liquid marketplace, meaning that you can easily enter and exit the market. Bitcoin trades 24 hours per day, seven days per week, and it has substantial trading volumes. In fact, the data shows that billions of dollars worth of BTC are traded daily!

What does this mean for investors? Well, it’s pretty simple: they can convert their Bitcoin to fiat money whenever they want to, and the good news is that the process is seamless, as it only takes a couple of minutes. All you have to do is deposit your BTC on a crypto exchange and then build a sell order. After you do that, the funds will be added to an exchange balance, allowing you to withdraw them to a bank account.

Use case as a medium of exchange

What’s interesting about Bitcoin is that it isn’t only a digital asset – you can also use it to buy products and services. Currently, fiat money is the most common medium of exchange accepted globally, but it goes through third parties. However, Bitcoin is different, as you can send and receive it across borders without facing any regulatory barriers.

While sending funds through a bank wire can take a lot of time, you can complete a Bitcoin transaction in as little as