How to Invest in Bitcoin with little Money?
How to invest in Bitcoin with limited funds? This is a question that many investors ponder. They recognize the significance of including BTC in their investment portfolio, but they are uncertain about the best approach.
First and foremost: why invest in Bitcoin?
Bitcoin is the most revolutionary asset of the decade, and it has been the highest performing investment in recent years. Despite being a relatively young cryptocurrency (less than 20 years old), Bitcoin possesses a quality that no other asset can match: it is a 100% decentralized form of money that is impervious to government interference.
As many are aware, governments have a tendency to accumulate debt. Most of them spend more than they collect, leading to an unfavorable situation and an insurmountable debt burden.
To tackle this issue, governments resort to devaluing their fiat currencies in order to repay their debts. They print copious amounts of money, resulting in rampant inflation: a decrease in the purchasing power of money. When you increase the supply of money, you diminish its value. This is the well-known law of “supply and demand.”
Consider the example of the US Dollar – in the past, 60 years ago, when it was still backed by gold, this fiat currency was highly esteemed as it was scarce and tied to the amount of gold the government possessed in its reserves. However, in 1971, US President Nixon eliminated this “constraint.”
From there, it all went downhill for the state currencies.
Understanding these facts, we can appreciate one of the greatest strengths of Bitcoin: it is a decentralized cryptocurrency that is not reliant on any government. Its network is distributed worldwide and is not susceptible to the influence of presidential or dictatorial politics.
Furthermore, another significant advantage of BTC is that its supply is limited to only 21 million units that can be mined. This creates a deflationary effect in the long term, in contrast to the inflationary practices favored by governments. This concept did not exist until the advent of Bitcoin.
Some economists project the price of Bitcoin in 15 years at $2,500,000.
