Bitcoin Analysis: Why It’s Still As Important As Ever
This is a time when people typically reflect on things that have made them feel grateful over the past year and speculate about why they might experience gratitude in 2019.
Bitcoin has been around substantially longer than this year, but 2018 has led to greater adoption levels, demonstrating why 2019 will give people plenty of reasons to feel thankful for the cryptocurrency.
Here are seven of them.
1. It Has High Market Demand
The market demand is one of the many factors that dictate the likely longevity of something available to consume. Although Bitcoin had some rocky points in 2018, it started the second half of the year with a 12 percent rise.
Plus, projections indicate that the demand could continue throughout 2019. Many retailers got on board with Bitcoin in 2018, but institutions have held off. The lack of regulatory clarity is cited as something that may be causing those organizations to balk, but analysts think that institutional demand could kickstart in 2019. If that happens, the market fervor should be even more significant.
2. User Information Stays Secure
Bitcoin runs on blockchain technology, which stores information securely in a decentralized manner. That’s different from the usual method of housing data today, which allows hackers to access content in its complete form and sell it on the black market.
Moreover, when people store information on a blockchain, whether for Bitcoin transactions or otherwise, they choose when and whether to share it. Today’s society is one where many individuals don’t know what companies do with their data or aren’t sure which organizations have it. Blockchain represents a more user-empowering approach toward data security and privacy.
3. It’s Easier to Invest in and Trade Than Stocks
Individuals often find investing in the stock market overwhelming and not appealing. A study released in late 2017 by Ally Bank found that 61 percent of adults viewed stock market investments as “scary or intimidating.” Plus, millennials were more likely to feel those emotions than older generations.
Among the top fears people cited were losing money due to bad investments or having to invest too much money to get started. However, a different study found that a quarter of affluent millennials were using or holding cryptocurrencies.
If people are unsure how to begin investing and trading Bitcoin, there are various apps to help. They can also try Ben, a cryptocurrency chatbot aimed at helping beginners with buying and selling Bitcoin and other cryptocurrencies.
Bitcoin has familiarity on its side when appealing to potential investors too. A YouGov Omnibus poll found that 71 percent of respondents had heard of Bitcoin — more than any other cryptocurrency.
4. Making International Payments Is Simple
Bitcoin offers an international payments option that lets people avoid slow transaction times and cost-prohibitive fees. Transfers complete in minutes and don’t require people to manage multiple payment accounts. They only need Bitcoin wallets, and then they can send money anywhere in the world.
5. Bitcoin Is a Very Liquid Asset
A highly liquid asset is one people can convert to cash, buy or sell in a short amount of time with little or no loss in value. Bitcoin is very liquid because people can take care of transactions almost seamlessly, and many do so while keeping a sharp eye on the changing market conditions for maximum impact.
Many Bitcoin exchanges allow people to sell the cryptocurrency in exchange for cash instantly. Then, people can transfer the cash equivalents to their bank accounts. When using Coinbase, one of the most well-known exchanges, that withdrawal can happen in as little as a day. There are also Bitcoin debit cards that enable individuals to get cash equivalents of Bitcoin amounts at ATMs.
These options make it easy for people to invest in Bitcoin and actively use it no matter how long they’ve been involved with the cryptocurrency.
6. Most States Don’t Impose Sales Tax for Bitcoin Transactions
People who pay for things with fiat currencies are accustomed to having sales tax added to their totals. However, that’s not the case — yet — for cryptocurrency transactions in the majority of U.S. states. California and New York are a couple of the states that ironed out the logistics of imposing a sales tax for people who buy things with Bitcoin in those places.
Most other states are taking a wait-and-see approach determined by how popular Bitcoin becomes in their respective locales. As such, people throughout the U.S. can likely look forward to purchasing things with Bitcoin and not worrying about sales tax in 2019 — perhaps even longer than that.
7. It’s Free From Third-Party Control
One of the things that attract people to Bitcoin is that banks or the government do not control it. Governmental regulations could eventually be enforced to monitor Bitcoin to some degree, but if that does happen, the day still seems far in the future.
Besides many U.S. legislators still being unfamiliar with Bitcoin and how it works, some people think that regulating Bitcoin would require a change to the U.S. Constitution. Concerning other countries, some are making cryptocurrencies for the nation’s residents. They’ll probably put their energies toward regulating those and not get caught up trying to regulate Bitcoin, which is already used globally.
Moreover, people who are dissatisfied with banks have increased their dependence on Bitcoin. They appreciate that unlike the restrictions imposed by banks, Bitcoin users are not limited by specifications about maximum amounts for deposits or transfers.
It’s not even necessary to have a bank account to use Bitcoin. That advantage spurs the belief that Bitcoin could reshape the future for the world’s “unbanked” population who don’t have access to traditional banking methods.
What New Reasons for Gratitude Will Emerge?
This list emphasizes why people who are interested in Bitcoin will have many reasons to be thankful in 2019. Additionally, there could be some hidden perks on the horizon, resulting in even more reasons to be grateful.