DeutschAnyone who has been following Bitcoin for a while knows that the price is volatile and you can quickly experience a price drop of ten percent within a day. For many, this volatility is off-putting and prevents them from getting started. But what many don’t know is that there has probably never been a better time to buy Bitcoin. In this article, we present five reasons why you should buy Bitcoin.
1. More and more Institutional Investors are Buying Bitcoin
Private investors are no longer the only ones investing in cryptocurrencies. Wall Street giants such as Fidelity and ICE are stepping in to profit from the next Bitcoin boom. Various companies enable institutional investors to invest in Bitcoin derivatives through their subsidiaries Fidelity Digital Assets and Bakkt. This also allows Wall Street banks to participate in the Bitcoin market without having to worry about the secure storage of their coins. And various Wall Street firms seem to be taking an increasing liking to this, as can be seen from the Bitcoin trading data on the US derivatives exchange CME. At the beginning of November, the CME had the highest open interest for Bitcoin futures (over $6 billion) of all time. This means that futures contracts worth over $6 billion are outstanding.
2. Publicly Traded Companies Buy Bitcoin as Cash Reserves
Asset managers are not the only major investors investing in digital currencies. In the meantime, publicly traded companies such as MicroStrategy and Square are also buying Bitcoin as a cash reserve. Michael Saylor, CEO of MicroStrategy, said on the subject:
Bitcoin is a monetary network that becomes stronger as more individuals and companies use it to protect their treasury reserves. The fire in cyberspace is spreading.
His company bought 21,454 BTC for a total price of 250 million US dollars to protect its cash reserves from inflation. MicroStrategy and Jack Dorsey’s company Square are not the only ones who have invested in Bitcoin. There are at least 15 publicly traded companies that hold Bitcoin as cash reserves.
3. More and more Financial Authorities are Allowing Bitcoin as an Investment
An unfortunately widespread Bitcoin myth is that Bitcoin has been banned as a speculative object by financial regulators. That’s not true. The majoritypart of the financial market authorities allow the trading of Bitcoin. With few exceptions, such as Pakistan and Saudi Arabia, you are allowed to invest in Bitcoin as an investment.
In Germany, virtual currencies are regulated by BaFin, and the purchase of Bitcoin and other cryptocurrencies is in no way restricted for private investors. The same applies to Switzerland. Swiss private investors can invest in Bitcoin with peace of mind, without having to worry about potentially restrictive regulations. Because there are currently no cryptocurrency-specific regulations in Switzerland.
4. There Have Never been as many Bitcoin Investors as there are Now
Although it is virtually impossible to find out exactly how many Bitcoin investors there are today, there are likely to be more Bitcoiners than ever before. A look at the number of Bitcoin wallet addresses helps. According to data from Statista, there are over 57 million Blockchain.com Bitcoin wallets and that is just one of the numerous wallet providers. Although many Bitcoin users own multiple wallets, this number gives a rough idea of how many people have already invested in Bitcoin. The trend is rising.
5. It Has Never been so Easy to Buy Bitcoin
Not too long ago, it was still relatively difficult to acquire Bitcoin. In addition, it required a relatively large amount of technical understanding to be able to complete the purchase process successfully and safely. In the meantime, however, there are a large number of ways in which the vast majority of people can buy Bitcoin easily and securely. Providers such as Relai or Bitpanda also help with this. With the associated apps, Bitcoin can be bought in a very simple way without any prior knowledge. The Swiss startup Relai in particular impresses with its simplicity and also dispenses with the so-called KYC – know your Customer – process, which greatly simplifies the purchase process. These developments will contribute to further adoption of Bitcoin.
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