The value of Bitcoin is a paradox. On the one hand, it’s a commodity that can’t earn, and, as with all assets that don’t produce profits, It has an intrinsic value of 0.
However, I believe that Bitcoin may be among the top sought-after assets in the world. The reason for this is that the distinctive characteristics of Bitcoin are remarkably appealing to anyone who has to deal with money.
Benefits of Bitcoin
24/7
Contrary to traditional finance markets, bitcoin isn’t closed in the afternoon or for the weekend. Bitcoin is available for trading 24 hours a day, all year. Additionally, sending Bitcoin to another person is much faster than bank transfers.
Self-custody
Individuals can self-custody cryptocurrency such as Bitcoin. It is unnecessary to depend on a bank or legal document or even a single entity to hold the full title of your assets.
This profoundly impacts countries worldwide that don’t have substantial property rights. It gives individuals greater control over their future. If you decide to self-custody your Bitcoin, choose Australia’s most reliable wallet.
Outsized returns
Bitcoin has been the highest-performing asset class over the past decade. It has even outperformed the second-highest asset class in the market; that is, it was the NASDAQ 100, by order of magnitude.
Even the smallest investments have produced impressive returns for long-term investors. Naturally, the rise of Bitcoin has resulted in several Bitcoin-related success stories.
The Bitcoin price AUD is subject to frequent changes due to factors such as demand in the market as well as investor sentiment and the global economic environment. The high volatility of Bitcoin has made its price in AUD susceptible to significant fluctuations.
Permissionless
Anyone can connect to any user on the Bitcoin network. It isn’t a matter of which part of your world or how much you own. It’s a free peer-to-peer network that anyone can use. Permissionless is paramount for us at Cointree as we believe that the digital economy is available to everyone.
Secure
Bitcoin is extremely secure. The public key cryptography of Bitcoin makes sure that each transaction is legitimate. The system’s decentralization means no central power can exploit it. Its irreversibility also means that no one can go back and alter the information.
Bitcoin’s disadvantages
Competitors
While Bitcoin is the main cryptocurrency (with a market cap that is more than twice the size of the next largest cryptocurrency), many coins are being developed daily. While it is in the lead, other rivals like Ethereum are rethinking their monetary strategy to compete with Bitcoin.
Transactions Per Second
Other blockchains like Solana and Avalanche have much more transactions per second (TPS) than Bitcoin, making them appropriate for applications requiring high throughput. Although Bitcoin is the primary value storage in crypto, other blockchains may be more suitable for various scenarios.
Awareness
Although Bitcoin is being reported by the largest media firms across the globe, many people need to learn why it’s transformational to society.
For instance, even though most people know it’s been a profitable asset for generating wealth, they need to understand how it can help unbanked communities.
Volatility
Bitcoin is incredibly volatile in comparison to other investments like property. While this is normal in any asset that is growing rapidly and is an asset for traders, it isn’t easy to accept for long-term investors. Like always, managing risk is essential in this market.
