It Could Be Time To Mainly Invest In Bitcoin [Reasons Why And Why Not]

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Invest In Bitcoin

Since April, the market has been flipped upside down with Bitcoin holding a majority of the entire crypto market cap once again. Since late 2017, Bitcoin has risen from the low 20% of the entire market cap, back to 70% which is a huge swing. For these reasons, we are going to discuss if Bitcoin should be the main hodl coin moving forward and go over a Reddit post reflecting this sentiment,.

Nothing should be considered investment or financial advice. Enjoy the ride.

Bitcoin Is King

What coin on the market has near 100% up time and seems to constantly out preform the traditional market? That would be your friendly neighborhood Bitcoin. It seems that as the grandfather of all cryptocurrency looms over another market dominating bull run, investors are slipping back to becoming Bitcoin maximalists.

Now, there are definitely reasons why Bitcoin has value. I think we can all agree on that, and there is no debating the demand for the digital asset across the globe. But, what keeps Bitcoin at the top of the totem pole over so many elegant and diverse projects? Really, it is the simplicity of the code. The simple consensus method of proof of work, the sheer demand to own Bitcoin, the uncorrelated value proposition, and the diminishing supply intertwined with the first mover advantage of being the first crypto ever launched lets Bitcoin rule unchallenged.

In addition, the simplicity of the coding language that utilizes a similar function based language software instead of a turing complete language, means that there are less chances of bugs, hacks, errors, issues, data storage and anything that can cause a network to go down. Basically, it is the super Nintendo of gaming consoles.

To expand on that analogy, the super Nintendo (bitcoin) can be thrown down a flight of stairs, shot, probably lite on fire and still function and play your game. Where as, the new coins and projects on the market are more commonly known as the newer gaming consoles that will break if you over heat them my putting something on top of them. On top of that, the new consoles basically cost money just to play the game you already paid $60 to own like Ethereum’s gas requirement. This is a stretch, but if you can relate to that analogy, you understand the difference between new projects and Bitcoin. In addition, most of the new projects do not even have functioning consoles or games for that matter, yikes.

Is Bitcoin Out Dated

A common misconception about Bitcoin though, is that it will become replaced by a newer and faster blockchain that can be used for micro transactions, smart contracts, and interoperability. The facts are that anything most chains can do, Bitcoin can eventually do through Layer 2 solutions (L2). The main problem is that L2s are extremely complex and difficult to build out properly. Take Lightning Node for example, it still has a good amount of issues and has yet too be proven to work on a large scale. It has taken years to even reach that point with Bitcoin, so unfortunately, L2s may not be the perfect answer.

Overall, Bitcoin is currently best used as a means for exchange across global markets like exchanges, and as a store of value. In order to really utilize Bitcoin for micro payments, you would just need to have a master or market wallet that held all of the Bitcoin right now. Then trades could be executed instantly through a third party platform similar to how exchanges work, and people can withdraw their funds when they are finished shopping or leaving the market. Other than that, Bitcoin payment gateways are the next best solution. One in particular we support called Crypto Chill helps brokers, exchanges, and retailers settle payments, set up wallets, and secure assets across a secure network of nodes.

Should You Invest In Bitcoin

Although Bitcoin still has its problems, some people seem to think it is the best solution for everything.

While we are sure Luc learned everything there is to know about crypto in the short 2 years he has been in the space, we do not agree on Bitcoin being the only investment to make. Not investment advice by any means, but here is my opinion.

Yes, Bitcoin is by far the safest investment you can make on the market and almost guarantee yourself a positive ROI long-term simply due to the growth and scaling that will happen over time. Although, there could very well be better investments on the market. This is because, newer projects will usually start with a much lower market cap than Bitcoin and can easily 2 to 20 times their market cap before even reaching a stable market trading level if you invest in the right project at the right time.

Unicorns In Crypto

Lately, this seems to be more of a unicorn then realistic expectations in the market at this point. Until the next official market surge, there are very few (good) coins on the market that even go 2x any more in a decent time frame. The most recent coin that surged over several months to a new support level would have to be Binance Coin, BNB. Rightfully so, Binance coin is supported by the largest exchange in the world, Binance, as well as a growing network for liquidity, constant increase in token based projects migrating over from Ethereum, and Initial Exchange offerings (IEOs) that require an amount of BNB to even participate in. These factors have lead to BNB surging several times its value in 2019. Besides BNB and Bitcoin, there have not been many top market projects that have done the same and held their position for an extended amount of time.

Therefore, I would not go as far as saying Bitcoin is the only investment on the market, but it is the safest. Having a substantial amount of your portfolio in Bitcoin, will make your daily coin price checks easier, less stressful, and also provide you with an easier entry and exit strategy.

With Binance cutting off most U.S. investors from trading on their platform in September, it is going to become more difficult to enter and exit the market on platforms with decent liquidity. These are things to take into consideration when you are investing. Always make sure you have an exit strategy to protect your investments, which Bitcoin seems to have plenty of.