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Bitcoin was the initial application of decentralized finance. Satoshi Nakamoto, the inventor of bitcoin, underlined bitcoin as an electronic cash system. Bitcoin has acquired an exceeding extent of recognition due to its store value, and no one is familiar with the application of bitcoin payments. Several companies have started to invest resources in bitcoin, and many companies are already accepting bitcoin payments. 

One can invest in ample investment assets, but bitcoin is offering massive returns rapidly compared to other investment assets. As a result, bitcoin whales are now making profits in millions of dollars just sitting at their home. In a nutshell, bitcoin's returns are acting as a sideline income for any investor. 

Bitcoin traders are correspondingly making a considerable amount of money due to bitcoin's volatility. But, of course, you can also do the same by checking out authentic websites like how bitcoin bans these countries where crypto is restricted. Here are some of the prominent reasons why bitcoin is a good investment asset. So, without wasting any further ado and let’s jump straight to the facts. 

What is Bitcoin?

Bitcoin is a virtual currency but is majorly popular as an investment asset class. The store value of bitcoin, in contrast to any other cryptocurrency, is much more. All the more second leading cryptocurrency, Ethereum, is not half the market cap as of bitcoin.

 However, Satoshi Nakamoto did not design bitcoin as an investment asset as the only reason behind inventing bitcoin was to make transactions between sender and receiver much more accessible. Bitcoin underlies technology like peer-to-peer networks and blockchain technology. 

Bitcoin's advantages as a payment method were the prominent reason why the store value of bitcoin inclined. However, after an incline in the market value, factors like supply and demand, institutional adoption, and competition in the marketplace started to affect the market value of bitcoin. Here are some of the prominent reasons why bitcoin is a good investment asset. 

Higher Returns

As mentioned ahead, it might be an excellent payment method but is majorly famous for its profit potential. The returns on bitcoin are just unbelievable, as people are making millions of dollars from bitcoin units. 

Recently a bitcoin whale transferred 250 crores from one bitcoin wallet to another, and the bitcoin wallet has been inactive since 2012. In 2012, the bitcoin wallet invested almost 6 lakh INR in bitcoin, and you can calculate the profit it made in just ten years. In a nutshell, the returns on bitcoin are exceedingly high. According to a Bloomberg analyst, bitcoin might touch the value of $100k by the end of this year. 

Finite supply and Deflation 

Satoshi Nakamoto, the inventor of bitcoin, issued a finite supply of bitcoin units. Bitcoin miners can ever mine 21 million bitcoin units and not more than 21 million units. All the more bitcoin miners have already mined almost 18 million bitcoin units. Bitcoin halving is the action that declines the block reward of bitcoin mining after every four years. Bitcoin halving and finite supply of bitcoin are deflating the ecosystem.

 The rate of inflation in the bitcoin network is just 1.1% after the recent bitcoin halving. Due to such aspects, the store value of bitcoin will increase in the forthcoming years. Next, bitcoin halving will occur in 2024, and you should invest resources in bitcoin before the next bitcoin halving to avail profitable results in bitcoin. 

Institutional adoption!

Institutional adoption of bitcoin is one of the prominent reasons why bitcoin is a good investment asset. As a result, many companies are converting their balance sheets to bitcoin. Recently, micro strategy, the leading public holder, tweeted those rumors are apple invested almost $2 billion in bitcoin units.

 All the more, amazon announced recruitment for a digital currency manager. In a nutshell, companies are considering investing and adopting bitcoin payments. Moreover, recently El Salvador took the foremost step towards revolution by adopting bitcoin as a legal tender. 

Bitcoin as a legal tender offers ample benefits to the country so far, and it seems like a good decision. Institutional adoption of bitcoin influences people. It leads to an incline in the store value of bitcoin. 

The portion mentioned earlier demonstrates why bitcoin is a good investment asset.