Bitcoin Is the New Safe Storage of Wealth

Security Pitfalls of Cryptocurrencies Trade Bitcoin Goldman Sachs: Bitcoin Is More of a Commodity (Not A Currency) 2020 - Negosentro
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Bitcoin investors and crypto enthusiasts alike are coming to terms with the new reality of cryptocurrency today. Bitcoin isn’t going to be worth $100,000 by the end of 2019 and anyone who tells you that is probably lying. But Bitcoin is maturing, and with that comes new purposes and potential as an investment tool. It’s the kind of maturity that brings the attention of institutional investors, hence the continued efforts to create a Bitcoin ETF, as well as the growing list of retailers and ecommerce companies who are accepting Bitcoin.

The most compelling reason to buy Bitcoin today is to use it as a store of value, but often people dismiss this proposition because Bitcoin seems so volatile. Even though things have calmed down, Bitcoin prices can still move as much as 20% a month either up or down.

That’s why so many people question the wisdom of using Bitcoin as a store of value, and it’s one that’s been repeated by JP Morgan, Vanguard, Goldman Sachs, and other major financial players. When these major banks and financial institutions make these claims, usually it’s when they’re comparing Bitcoin vs. gold.

But they have a vested interest in keeping cryptocurrency down. Cryptocurrency like Bitcoin is a major disruptive financial product. The crypto enthusiasts who like to say Bitcoin will replace fiat currency sound a lot like the apocalyptic gold bugs who think some day everyone will have to buy their groceries with gold flakes. As long as there is the kind of central government authority it takes to keep the internet running, fiat currency will be more important than Bitcoin.

The real threat is the one posed by cryptocurrency to gold. If you’re considering investing in gold or Bitcoin, you should know just how real the possibility that Bitcoin could replace or contest gold as a store of value is. Not only do the people snubbing Bitcoin as a challenge to gold have a real stake to lose if precious metal were to be challenged by digital currency, but these institutions also lack the imagination to see where crypto could really go.

They say, gold is a thing you can hold in your hands, and Bitcoin is too volatile. It could never happen. But there’s more to the story.

The history of gold shows that after the government stopped controlling the value of gold through the gold standard, gold became just as volatile as Bitcoin is today. Through the 1970s and early 1980s, gold saw the very same kind of boom and bust that Bitcoin just went through.

If history is any indicator, there’s a major place for cash alternatives like gold and Bitcoin. As Bitcoin matures (something ETF investors are eager to see), wait and see institutions change their tune.

To start buying Bitcoin today, check out cryptocurrency exchanges like Bitbuy. They simplify the cryptocurrency purchasing process by making it easy to deposit cash directly from the bank through e-Transfer or Wire Transfer.

Save money on fees when you invest in Bitcoin.