Five reasons to buy bitcoin in 2021

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The landscape for bitcoin investment can be overwhelming, scary, and even daunting for new investors who, nonetheless, want to explore bitcoin.

Bitcoin's perception varies wildly from hardened bullish fanatics on one side to those who reject it and considered it as a fraud on the other side. If you're unsure which way to go concerning bitcoin, to invest or not to invest, here are five reasons why you should invest in bitcoin.

Bitcoin adoption is increasing.

Bitcoin is driving global acceptance. For instance, many people who are using Blockchain's wallet has risen throughout 2020 and it has increased sharply since last November.

In business's numbers term, the number of wallets has increased from 47 million individuals worldwide to 71 million in the last year.

However, wallets are just one piece of the puzzle. Retail investors are happy to entrust their bitcoin with custodians such as SquaresCash App, Coinbase, or PayPal. This exceeds the number of individuals who keep their bitcoin (BTC) in their own wallets.

If you consider buying your bitcoin, you can start by setting up your account to have your Independent Reserve of bitcoin

Bitcoin's unique selling point is best tailored to the remote or macro-environment

Bitcoin arose from the 2009 Global Financial Crisis. Bitcoin was secretly released into the world against a background of bank collapses, government subsidies, and money printing, where it was overlooked not by all but a tiny but growing community of idealists.

A decade later, a new financial crisis is being witnesses, characterised by further bailouts, record negative interest rates, and accelerated quantitative easing.

Th COVID-19 virus has elicited a unique global policy response. It unfolded so quickly that even industry experts were caught off guard. Through quantitative easing, a cumulative $3.9 trillion (6.6 per cent of the global GDP) has been mysteriously generated since February.

Some call it the Great Monetary Inflation (GMI) - an extraordinary proliferation of all forms of currency beyond any other developing world has ever seen.

Bitcoin stock-to-flow model

To measure the scarcity of any product, an investing term known as 'stock-to-flow' is used. The aggregate supply in circulation is represented by stock, as well as the amount of new supply each year is represented by the flow.

Bitcoin's Stock-to-Flow (S2F) can be measured with 100 per cent accuracy since it's open-source software with a set supply schedule. After Bitcoin's third halving in May of 2020, the new S2F is 56, which in itself is approximately equal to gold.

Bitcoin, on the other hand, is likely to be twice as rare as gold after the next halving.

The Bitcoin Stock-to-Flow (S2F) model was developed by PlanB, a pseudonymous quant trader. He contends that the increasing scarcity of bitcoin would grow its value.

PlanB's initial model has now been changed to a cross-asset price model. In respect to bitcoin price prediction, this model predicts that the price of bitcoin could hit $288 thousand in this period if the model holds.

While no one knows for certain, given the likelihood of such high returns, it might be smart to keep a sizeable amount of bitcoin on hand just in case.

Wall Street is adopting cryptocurrency

Bitcoin was the highest performing investment vehicle in 2020. In contrast, precious metals and stocks were crushed.

The success of bitcoin hasn't gone unnoticed by Wall Street investors and businesses. In August 2020, MicroStrategy, a market analytics company, revealed that they bought 21,454 bitcoin and had secured $250 million as part of their capital allocation plan. Since then, the firm's corporate stake in Bitcoin has risen to $1.145 billion.

Tesla acquired investment in Bitcoin as part of their organisation's treasury strategy. In February 2020, when they file a statement with the Securities and Exchange Commission (SEC), they announced that they purchased $1.5 billion in Bitcoin to provide themselves with more diversification options as well as maximising on cash returns.

A number of other Wall Street investors have jumped on the bitcoin bandwagon and this is always a good sight for any investment vehicle when it starts getting the nod from such top-level industry veterans.

Bitcoin has always surpassed its previous all-time high

You might be wondering "should I buy Bitcoin?" You should check its historical price information and then decide.

Bitcoin has experienced many fluctuations in the last decade, and it's been reported "dead" not less than 300 times in mass media. Even so, it has always succeeded in outperforming its all-time peaks, so there are no grounds to think that it won't happen again.

Conclusion

Investing in bitcoin might feel like a huge leap into the dark, but it doesn't need to be. That's because there are experts whose entire lives are dedicated to watching and predicting crypto trends and you can in turn watch these experts.

The prospects for bitcoin are looking good for 2021.