Why Bitcoin?
Why Bitcoin?
Bitcoin is increasingly being recognized for its potential to enhance financial strategies through unique attributes. Often referred to as "digital gold," Bitcoin serves as a potential hedge against inflation and currency devaluation, making it an appealing store of value. Its distinct characteristics, such as capped supply and decentralization, offer portfolio diversification and independence from traditional financial systems.
With only 21 million coins ever to be created, Bitcoin’s scarcity bolsters its long-term value proposition. Furthermore, its portability and global accessibility enable seamless cross-border transactions, providing businesses and individuals with unmatched financial flexibility.
Potential Inflation Resilience: Bitcoin is often viewed as a store of value, likened to digital gold, and pristine collateral. The strategic reserve of the internet economy. As a way to help reduce exposure to inflation and currency devaluation.
Portfolio Diversification: Bitcoin is an asset with unique characteristics that, when included in a corporate portfolio, may provide additional diversification by behaving independently of traditional asset classes.
Supply Scarcity: With a capped supply of 21 million coins, Bitcoin’s fixed availability can contribute to its perceived value over time, appealing to those interested in assets with limited supply.
Decentralization and Independence: Bitcoin operates on a decentralized network, allowing holders to manage assets independently of traditional intermediaries, which can appeal to those seeking reduced counterparty risk and enhanced financial control.
Portability and Accessibility: Bitcoin is easily transferable across borders and can be securely accessed from anywhere, offering flexibility for global transactions.
Why You Shouldn’t Buy Bitcoin Without Educating Yourself First
We advise not to buy Bitcoin if you haven’t studied it.
Why? Bitcoin can be a high-risk, volatile asset. Prices can drop sharply, which could mean potential losses, especially for new investors. And unlike traditional finance, Bitcoin has no customer service to retrieve lost funds or fix mistakes. Once it's gone, it's gone.
Buying Bitcoin requires understanding its basics and its potential, especially given its role as a global, decentralized currency. It isn’t controlled by any central bank or government, which makes it vastly different from currencies like the Australian Dollar. In places with unstable currencies, like Venezuela or Turkey, Bitcoin is sometimes used as a stable alternative in the face of inflation. But that doesn’t mean everyone should jump in without preparation.
Our advice? Learn and study. Bitcoin is a revolution in the making, with a vision to democratize finance and protect against economic instability. But knowing its history, purpose, and mechanics is crucial. Explore some excellent resources to begin your journey:
Books:
Podcasts:
Articles:
Real Estate Investors Should Consider Strategies For Bitcoin, A Superior Store Of Wealth, by Leon Wankum
Additional Resources:
The Bitcoin White Paper by Satoshi Nakamoto
Learning about Bitcoin can help you decide if it's right for you and can clarify why so many believe it's one of the most important financial inventions of our time.