Spoiler: decentralization and limited emissions rule.
Bitcoin is inherently valuable - this fact is an immutable truth that comes from the very essence of the world's first cryptocurrency.
It is very simple to explain such arguments by comparing BTC with the same American dollar (as with any other fiat currency).
At the protocol level, Satoshi Nakamoto fixed the upper limit of the emission of his creation: in total there will be 21 million bitcoins in this world, and not a coin anymore. This fact in itself creates an obvious shortage over time, and if you consider that halving every four years also reduces the process of the emergence of a new cryptocurrency, making it an even rarer “exhibit” each time, then there is no doubt at all about the value of BTC remains.
Add to all this the fact that approximately one in four bitcoins in this world is lost (that’s about 4.7 million coins against the current supply of 18.5 million). This is another serious deflationary component...
What do we have with the dollar on the other side?
The powerful production of new banknotes does not stop; the Federal Reserve's printing press is working at maximum speed, trying to satisfy the exponentially growing appetites of the powers that be.
In this case, only one word is appropriate - “inflation” - and it is growing along with new masses of fiat money, unreasonably appearing literally out of thin air. And this is logical, because the more of something in the world, the cheaper it is: if gold lay under our feet instead of stones, then it would be worth absolutely nothing...
In turn, the Bitcoin inflation graph over the 13 years of its existence looks like this:
Needless to say, a similar chart of the same dollar will look completely opposite.
That is why, globally, there is no doubt about the growth of the Bitcoin rate: after all, the time will come when the last coin will “come out from under the miner’s pick”, and the era of mining the world’s first cryptocurrency will end, and holders of digital gold will become akin to collectors...
Therefore, a long-term plan to hold crypto in a private wallet seems to be the most reasonable strategy. This becomes especially obvious if you look at the chart of the average 4-year Bitcoin rate, and not get confused in the weekly and monthly candlesticks, which create only a short-term picture of the fate of the leading cryptocurrency.
Disclaimer: the thoughts and arguments expressed in this material are solely the personal opinion of the author: this material should not be considered as trading advice.
