Investing is a serious endeavor that requires comprehensive research, experience, and reasons behind each decision. Popular cryptocurrency proponent Brandon Quittem recently decided to list 12 reasons why people should buy Bitcoin.
Performance, Chaos, Curiosity
Quittem firstly outlined Bitcoin’s past performance. More specifically, he referred to the last decade, where the primary cryptocurrency became the best performing asset. As CryptoPotato reported earlier, BTC marked ROI of nearly 8,900,000%, which is considerably more than every other asset.
Although the new decade began merely months ago, BTC is already outperforming the S&P 500, gold, and government bonds again with 30% year-to-date returns.
For the second reason, the analyst noted that “Bitcoin thrives on uncertainty/chaos.” Referring to the chaotic 2020 so far, with the US – Iran tension, the wildfires in Australia, and the COVID-19 outbreak, he said that “Bitcoin was born for this.”
The primary cryptocurrency came into existence during the massive financial crisis in 2008. While it has experienced lots of turbulence in those years and during the mentioned above chaotic events, it has survived and continues strong.
Quittem continued with, “Bitcoin is fun, and you’re a little curious,” and he mentioned its “revolutionary technology that’s changing the world.” This should also urge people to “consider a small Bitcoin investment.”
Outside Recognition And Being Fair
For its fourth and fifth reasons, Quittem touched upon recognition coming from the “outside world.” He cited the words of US Congressmen Patrick McHenry, who said last year that there’s absolutely “no capacity to kill Bitcoin.”
Then, there’s the so-called smart money. And Quittem brought up several such investors that have been quite supportive of the largest cryptocurrency by market cap.
Popular hedge fund manager Paul Tudor Jones III recently said that he’s buying Bitcoin to fight the rising threat of increasing inflation rates. Social Capital Founder Chamath Palihapitiya opposed Warren Buffett’s rather adverse perception of Bitcoin and urged people to invest at least 1% in the asset.
Twitter CEO Jack Dorsey has also demonstrated his appeal to BTC previously. Moreover, his personal Twitter profile has only one word written in the description field, and it reads – Bitcoin.
Quittem also said that “Bitcoin is the most fair money,” as it “enables equality of opportunity.” Referring to the decentralized nature of BTC where no central authority operates nor makes any decisions, he noted:
“Everyone can participate in the same monetary system. Let’s end government money discriminating against the poor, minorities, elderly, and helpless.”
Free Speech, Scarcity, And The Roman Empire
“Free speech underpins a free and open society. Bitcoin is money, and money is speech. Don’t like watching governments and central banks bailing out their buddies while mainstreet suffers? Vote with your dollar: buy Bitcoin,” urged Quittem.
While free speech and BTC may not be linked directly, a recent feud between President Donald Trump and Twitter CEO Jack Dorsey highlighted Bitcoin’s decentralized nature once again.
Reason number eight goes to “scarcity,” which is one of the primary traits of Bitcoin. Only 21 million coins will ever exist. Roughly every four years, an event called halving takes place slashing in half the creations of new bitcoins, which ultimately slows down the process, making it even more scarce.
As such, Bitcoin is frequently compared with another asset with a limited supply – gold. However, while no one really knows how much of the precious metal exists, BTC’s maximum cap is a well-known fact.
“Just like the Roman Empire, the US Dollar hegemony won’t last forever.” – reads reason number 9. By digging into history, Quittem pointed out that the monetary base “changes periodically” and “Bitcoin has a real chance of being the next monetary base.”
Although the chances of this seeming rather far-fetched at the moment, if indeed occurs, Bitcoin’s market position and probably price will skyrocket.
Money Printer Goes Brrrr And Evolution
Next, Quittem distinguishes the limited supply of Bitcoin and the entirely unlimited capabilities of central governments to print as much money as they decide to, as seen lately.
The COVID-19 pandemic caused numerous economic shocks worldwide. To fight the plunging markets, governments fired up their printing machines. The US Federal Reserve, for example, printed trillions of dollars on several occasions. While the initial results indeed assisted the economy to some extent, and the markets have recovered, the long-term consequences could be devastating.
Prominent American economist, Peter Schiff, recently warned that these excessive amounts could put the US into a hyperinflation state.
For the 11th “buy Bitcoin reason,” Quittem reached out to science:
“Bitcoin mimics an evolutionary strategy that’s been working for over 1 billion years (decentralized network intelligence). Commonly observed in mycelium, neurons, the Internet, and now Bitcoin. Bitcoin is Lindy.”
To conclude, Quittem writes that “good money matters.” He explains that “money is foundational technology enabling humans to organize in a complex society.” It also enables specialization and trade, which increases wealth for everyone. This, he adds that “Bitcoin is the best money we’ve ever had.”