What are the reasons to buy Bitcoin?
Most people would say “profits” because it's been the best performing asset for the last decade, but why would you chase profits when there are things of far more importance on the table?
Make no mistake, profits are somewhere in the mix, but they are merely indicative of the asset's opposite trend to the performance of the underlying financial system it was designed to replace.
This means that it's appreciation is sort-of a “stability solution” to the continuous decline in fiat’s purchasing power. In essence, the profits aren't something one should chase, because that would mean cashing back into the very doomed system we wanted to escape.
But what even then is the best reasons to buy Bitcoin?
You want to look at:
Freedom
Control
Leverage
Freedom — because now your livelihood isn't tied to a debt-crippled system that's also heavily centralized in a way that your wealth declines as the years go by. Control — because now you actually do own what you earned. Leverage? — now this is where the “price appreciation benefits,” comes in considering that it's the best performing asset, you're well in a position with significant advantages because you've stacked what is expectedly soon to play a pivotal liquidity role, or more specifically, be the backbone of world economies due to moving inversely to fiat’s value.
In essence, you can influence future value flow to a degree proportional to the weight of your holdings.
But of course, it's not something normie minds can usually grasp or care about because normies are generally not that interested, they just want to make money, stack that somewhere and live life.
It's cute, probably a dream come through for any and everyone, but it is also what has had us trapped with fiat over the years.
It's too much trust to be placed on something in expectation of stability despite the understanding that change is the only thing that is constant.
Bitcoin as the backbone of world economies
Understanding that things change is why Bitcoin is of great importance.
We have to look at it from this perspective because at some point, even Bitcoin will be replaced. Fiat at some point was the best option we had for facilitate trade, but today, it's not, and given that our world has evolved and now there's far more than just basic trades, the complexity of world economies today makes alternatives to fiat, where cryptocurrencies are a top competitor, a big up the list of considerations.
We've seen how the current system has played out. We have terrible debts, owed to ourselves by the way, earth sure does owe earth a lot of money, and the problem here generally is that a select few to get to profit from this while everyone else suffers the cost of their actions.
This, isn't how it is supposed to be.
Debt is something that will always exist, but the cost of it must be distributed to people who also would directly benefit from it.
With cryptocurrencies, where the underlying system that powers it is set up to be decentralized, essentially making risks and rewards distributed to all participants in proportion to their investment, we have a chance at building more productive economies.
Institutional players understand this, this is why so much fiat debt is being acquired to buy Bitcoin.
The bridge currency to everything else is Bitcoin, and when you're sitting on a great amount of that, you essentially can direct value flow for the next couple decades? Centuries?
Certainly this might sound like fiat rebranded when phrased in this way, especially since institutions are all about centralizing the value, but that isn't really the case, because there's more to crypto than Bitcoin and although it is and will continue to be, for quite a while, the most liquid crypto asset, what happens on Bitcoin, governance-wise does not affect the rest of crypto, governance-wise.
This is why we discuss the importance of multiple sovereign networks alongside Bitcoin because it's not enough to have one decentralized network, the very nature of how the network works tells you that more chains were planned.
Hard forks tells you that decentralization isn't achieved without the ability for new networks to emerge and function without governance influence from the former.
Options are important.
But of course, governance problems on top chains may lead to price crashes and that affects most assets but price impacts are temporary and will always correct, there are usually not a direct threat since so far no ecosystem can say that Bitcoin's price crash has threatened its separately functioning chains, governance-wise.
Bitcoin becoming the backbone of world economies means that it would lead in liquidity and those sitting on a lot of it can essentially access more value. We will likely see new banking systems built atop of bitcoin by institutions sitting on a lot of it.
The good news, at the end of the day is that this rise of “banks on Bitcoin” will not be a threat factor to rest of the industry because both the benefits and risks associated with any of these future developments will mostly be directed to Bitcoin holders and market participants.