What Is the Pull To Buy Bitcoin? Here’s the Reasons Why Investors Purchase the Top Crypto Asset
Bitcoin has been around for a decade, launching in response to the recession that the economy was experiencing at the time. For proponents, the list is quite lengthy over why they stick with the token with every day of investments. But, still, the question remains – why do people end up buying Bitcoin at all? As the Daily HODL says, it is due to
“value and values.”
The whole of Bitcoin and cryptocurrency is based on mathematical formulates, verification, and record keeping. There is no need for trusting someone else on the blockchain, because everything is transparent, though the publication says that the way it works mimics the way that “humanity has exchanged value” for much of recorded history.
Cryptocurrency centers around freedom and fairness, and it is only based on the money that exists at this moment. Though there are some companies that offer loans, there is no worry about future value, giving consumers the option of dealing in the now. It also eliminates the bank middlemen, with the ability to transfer at a near instant rate, especially as companies like Ripple advance.
Realistically, the Daily HODL points out that the most realistic way to describe cryptocurrency is “honest money.” Everything does not just surround the idea of exchanging value, because it also depends on the values of users. The system is just a digital version of the analog version that banks and paper money uses, which means that there’s nearly infinite potential now. Banking does not require this same honesty, because they can tell consumers that their money is safe while lending it out at the same time. Even when someone has a bank account, the money is still in the possession of the bank at all times.
With those things considered, the reason people get involved with Bitcoin is not as unclear. However, it presents a new concept – could Bitcoin be better than other currencies? The Daily HODL says it is, naming two specific reasons – fixed supply and a constant alignment with wholesome human values.
Limited supply may seem like an odd advantage, but much of the reason that the economy inflates is due to overprinting money. While it looks on the outside like more wealth is being spread, that wealth has less value, and it is entirely controlled by the government. Bitcoin, however, will never make more tokens. Investors get what they get, though their continued use and interest drives up the value as coins become scarcer. State currencies without a fixed supply will absolutely lose value.
Bitcoin has the potential to give people access to a financial system that has not had this opportunity before, like low-income households. The current banking system is failing, especially because the rules are so restrictive than many of these individuals do not have any way into the banking industry. With cryptocurrency, there are lower costs and anyone has an opportunity to get in. Wealth does not matter, giving the poor a step out of the poverty they experience.
Even blockchain is beneficial to individuals in these areas, distributing millions of dollars to consumers in regions like Syria and others. Since May 2017, the UN’s World Food Programme ensured that refugees in Syria received millions of dollars in food vouchers to thousands.