The shortest and most straightforward answer that exists for whether or not to invest in Bitcoin in 2020 is: Yes, it is still an excellent time to buy Bitcoin and some other cryptocurrencies if we think about the long term.
And we have several reasons for making this statement based on several factors that we will list below:
1. Bitcoin is still in its embryonic stage, it is a disruptive technology that with every passing day surprises those who know all its potential and is growing more each day. Just as in the 90s we had the “dot-com bubble” with the internet boom, Bitcoin is even more disruptive than the Internet in my opinion, as the internet was the decentralization of information, Bitcoin (Blockchain) is the decentralization of finances.
2. Potential profits from the inflow of institutional money into Bitcoin and the general cryptocurrency sector. With the start of ETFs, Bitcoin is on Wall Street, which could facilitate the entry of institutions thinking about investing in the sector.
3. 10-year price history, where currently the value of Bitcoin is around $10,000, and that 3 years ago with less knowledge, fewer merchants accepting it as a form of payment, fewer media, less robustness on the network, reached 20,000 dollars.
Not that the past guarantees a future, but this is the opinion of several graphic analysts and bitcoins veterans, Bitcoin has the potential to exceed $ 1 million in the long run.
4. Shortage factor, there will be only 21 million units, whoever has a Bitcoin unit 10 years from now, will be part of a select group. The fact that the number of Bitcoins is limited means that, theoretically, their value will be increasingly higher, assuming that demand also increases.
If all of the existing Bitcoin supply were evenly distributed among the people on Earth, there would be only 0.0023 BTC for each person. So if you have more than 0.0023, you have more than most people can have. So, maybe your minimum investment in Bitcoin should be at least 0.0024 BTC? At today’s quote, that would be just $ 24.18.
Always good to remember that it is a deflationary cryptocurrency, unlike the fiat money we use today that is printed from time to time, Bitcoin will never have more than 21 million units, but many were lost in the beginning and probably others will be too.
5. Halving, this year 2020 we will have Bitcoin’s third Halving, approximately in the month of May, which will cut the reward per mined block by half, which will further reduce the injection of units into the market. This tends to value Bitcoin, as it will have to be used twice as much electricity to generate a Bitcoin unit, which can cause new players to leave and enter the mining sector, causing a new balance in the mining difficulty. Checkout our Halving article here.
6. Being your own bank, unlike traditional banks the Bitcoin network doesn’t sleep, it doesn’t have a holiday, it works 24 hours a day. With each passing year, Bitcoin transaction rates and speeds are getting smaller and faster.
7. Security and transparency, two of the main qualities of Bitcoin. Through the Bitcoin ledger, all transactions are transparent, in addition to not being reversible, as it is not controlled by any central entity, once carried out, it is impossible to modify a transaction.
This may seem risky, but thanks to this it is impossible to tamper with any transaction on the network, making it completely secure. Blockchain applied to Bitcoin is a giant accounting book in which everyone can participate and all history will be saved.
8. Value reserve, like digital gold. Totally divisible and without the “gold bug”, the problem is to transport and keep large amounts of money safely. Gold has a market value of $ 6 trillion. If Bitcoin reaches half this amount, that would put Bitcoin’s price at approximately $ 142,857 per unit.
And other advantages like Bitcoin is accepted as payment, you will hardly be able to go to a restaurant and pay in gold, difficult to be confiscated since for that you need to have access to private keys and easy transfer around the world.
9. Lightning Network, a side channel in the Bitcoin network that is constantly growing, which promises a significant reduction in fees and network speed. In addition to the expansive scalability of the network, it can increase Bitcoin’s simple 7 transactions per second to become a strong competitor in this factor against VISA, which today is around 24,000 transactions per second.
10. Bitcoin is uncensored, regardless if a country wants to regulate it, ban it, it will never succeed due to its decentralization! China tried to do this in 2017 and the network got stronger, increasing the numbers of miners and people looking for Bitcoin. Since it is an asset not controlled by governments.
So, back to the beginning of this content: Is Bitcoin still worth buying in 2020? Absolutely, it is worth having a little in your portfolio. Why not save a store of value that no one can take from you? Which has significant factors for its appreciation and solves several problems of the currencies that we currently use.