10 Reasons I Bought Bitcoin, and Why I'm Still Buying...

in LeoFinance3 years ago (edited)

With Bitcoin approaching $20K, I thought I'd briefly summarise why I bought in initially, and then why I kept on buying.

I'll be upfront - I bought my first 0.027 BTC in 2017 when it was priced at around $4500, and I carried on buying in gradually when it rose, then gradually while it fell, and I'm still buying... I bought 0.01 BTC only a few days ago when BTC was at $17000.

I'm going to keep on buying because I see the potential for this thing to hit > $100 K at some point in the next few years.

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Anyway, there are several reasons I've bought into Bitcoin, based mainly around the fact that it performs several key financial functions better than fiat or gold and without the need for central authorities, so here are:

Ten Reasons I bought Bitcoin, and why I'm still buying Bitcoin!

I should just state that this is most definitely NOT financial advice.

  1. I initially bought Bitcoin because I was just looking for an alternative investment, it sounded cool, fun and different to gold, shares, art, whisky, so I bought some.

  2. I bought more Bitcoin because I learned that, unlike the dollar, it can’t be devalued by a cabal of rich old white men deciding to print more of it.

  3. I bought more Bitcoin because I learned it’s got the potential to be more valuable than gold: most Bitcoin has already been mined and the mining rate of Bitcoin is decreasing over time. In fact, the new supply of BTC relative to the amount already mined is already lower than the new supply of gold.

  4. I bought more Bitcoin when I learned that I don’t have to rely on a bank to store my wealth – I can store my BTC super-securely in a digital cold wallet, offline, meaning I can be in total personal control of it, as long as I store my keys securely.

  5. I bought more Bitcoin when I realised I can take my BTC anywhere in the world with me, on my phone if I like, and access all of it instantaneously (not that I’d recommend you do this in case someone mugs you, you’re probably better off keeping your cold wallet at home!)

  6. I bought more Bitcoin when I learned I can send it instantaneously to anyone else with a BTC wallet, no need for a bank or another central agency like PayPal to be involved.

  7. I bought more Bitcoin when I learned I could buy other cryptocurrencies with it, some of which give me access to blockchain games and blogging which diversify my investments. (The best of these is currently leofinance - I'm getting paid in crypto to write this!)

  8. I bought more Bitcoin when I learned I can use it as collateral to take out loans (not that I do this personally, but it’s a nice fall-back to have).

  9. I bought more Bitcoin when I learned I can stake it in several places and earn 5% or more interest on it every year, you know, like you used to be able to do with cash in banks!

  10. And I’m still buying even more Bitcoin because everyone is finally realising 1-9!

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(OK so the reasons weren't quite in that order, but give me some creative license, they are all 100% genuine reasons why I kept on accumulating!)

Find out more about Bitcoin...

If you'd like to find out more about Bitcoin this article from Coin Market Cap: '10 things to know before you buy your first Bitcoin' is well worth a read.

To find out how to get started with buying Bitcoin this article from Bitcoin.com is a useful starting point, but this process does vary by country, so do your research first!

There are also some useful articles about Bitcoin more generally here on LeoPedia.

It’s not too late to buy BTC, but as I said above, this isn't financial advice and if you buy the risk is totally on you, but then again so is that $100K + BTC!

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Personally, numbers 1, 4, 7, 8 and 9 ring truest for me and are the main reasons I continue buying it daily. Loaning it out and earning interest (through loaning it out via 3rd party CeFi) are the most appealing because I'm more of a saver and fed up of being shafted, even though I don't exactly have a lot to be shafted with anyway! At least can put that money to work with crypto and then use it to buy other investments, such as my own house when/if those eye watering prices are realised! We can hope!

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Not number 2?

2 is my favourite!

It does seem that crypto is now giving us the returns we were getting off saving 10 years ago.

I was getting a 5% return on some of my cash savings not so long ago.

Most of my cash is in Premium Bonds btw - that way you get to be mildly disappointed by only winning £25 every few months!

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Ah yeah number 2 as well haha! Must have been blinded with rage when I read it that I blanked it out!

5% on cash savings... Jeez, that must have been only a few years ago, how times have changed. I'll be keeping involved with crypto and Bitcoin for a while yet I think!

Ah the premium bonds lottery! Congratulations on your winnings 😀

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These are some solid reasons - I share most of them.
I made it a habit to just buy 250€ worth of Bitcoin whenever my salary arrives, no matter what the current exchange rate is. Time in the market ultimately beats timing in the market.

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Oooh kerching! That's a line right there:

'time in the market......' I like it - I probably haven't bought as much as you, or as regularly, but I haven't really tried timing the market either - just slow and steady relatively small buy-ins!

I've got enough that if it does hit $100K I'm set, then again I do lead a pretty frugal life!

And then there's Hive etc. on top of course!

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Oooh kerching! That's a line right there:

'time in the market......' I like it - I probably haven't bought as much as you, or as regularly, but I haven't really tried timing the market either - just slow and steady relatively small buy-ins!

I've got enough that if it does hit $100K I'm set, then again I do lead a pretty frugal life!

And then there's Hive etc. on top of course!

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Whisky would be a useless investment for me, wine too, come to that 😁

They do hold it remotely you know!

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I'm not sure if I'm pleased or sorry to learn that!

It's been a pretty good investment, I might even buy some more.

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I won't buy BTC at the moment even though I have the money, I mean there might still be pullbacks before 20k hit. I'm just saying. FOMO can sometimes make one make some decisions that's no so palatable. However it's good be all for the 20k and beyond

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TBH I don't pay too much attention to the price when I buy, I just buy a little each month, dollar cost averaging.

I just get too anxious waiting for limits to fill otherwise!

But I do get the advantages of trying to time the dips, just not for me!

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Well timing the dips is good one can't help but wonder. As for me I pay attention to buy because I don't want to lose a lot of money for buying by business a ll

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Oh, I love the reasons. I don't hold any BTC at all at this point, and I'm actually not even sure I will.. Not because I don't believe in it, but because I don't really believe it will go towards $100K..

So I might just invest in other stuff instead.. But I haven't made up my mind yet.

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I had quite a lot of fun writing it. I was writing something else, wrote that first line and then had the idea for a quick 10 reasons post - It was meant as a kind of 'buy bitcoin post' for people who haven't yet bought any.

I was actually looking at how much capacity there is for BTC to take over the function of gold - on that basis, BTC could go to a lot more than $100K.

I'm resisting selling all my alts into BTC (Hive and LEO aside) there's just something about its mystique.

I say resisting, there's plenty of coins that could 10 times! You just don't know

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"I was writing something else"

That happens to me as well.. In fact, I think it happens 9 out of 10 times. lol.

I usually have an idea but it becomes something different during the time I write stuff.

BTC sure looks promising, I'm not totally convinced though. Not yet. But I'm sure that will change with time..

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Bitcoin just has that mystique!

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That is actually very true!

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Keep buying and keep sharing.
I am learning the ropes to earn it. so one day I will stash 1 BTC on my cold storage that can be used in my hard time or passed as an inheritance.

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That's pretty much the way I see it - just buying in, gradually, I'll get to one whole BTC eventually.

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I've not got any BTC, but that's okay. I'm not relying on crypto to feed me in years to come. Now it seems a bit late, but then it could still go up. I just wonder how it will go in the long term. The crypto community is pretty small compared to regular markets. It seems to spike for no real reason, such as now. I can still enjoy watching it all :)

I'm trying to figure out how high it could go too - when you factor in that the price of gold, which has a $9 trillion market cap is largely a social construct, BTC is similarly scarce, so could easily take up some of that slack, then consider everything that's built on blockchain - there's basically blockchain version of just about everything these days - there is ludicrous potential for $100K BTC!

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Dollar cost averaging. Nice...
This post makes me think of early retirement with the right amount of it and a good buy and sell timing.

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I do have a problem with selling my BTC, or rather I will have if I ever need to.

You know I think that's part of the reason why I still work so much when I don't really need to do - I want to hold onto and add to my crypto rather than rely on it!

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What do you think about ridding the waves? Buying during the bear market and selling right at the peak 😁?

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I don't do that as I have no idea where the peaks and dips are going to be!

I'd rather just buy in gradually, sell out gradually.

Like with Hive and LEO, they'll come a point when I just skim off the first week's worth of liquid earnings every month for example and not worry too much about the sell price.

Although I'd like to see the price of Hive go up to at least 50 cents before I start doing this, it's a bit painful ATM!

With LEO I'm still in a power up mood!

Much less stressful.

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Same here. Would be great to nail the exact peak and bottom 😁.

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Actually you just reminded me, there's no need to...

https://leofinance.io/@revisesociology/dollar-cost-averaging-almost-as-good-as-market-timing-over-a-50-year-investment-period

Whether that applies to BTC or not I'm not sure!

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I'm still buying it too. Where do you stake it?

Blockfolio and Celcius are two places I use - If you like you can use my referral link to join the later

https://celsiusnetwork.app.link/165931dc12

If you transfer in >$200 worth of BTC we both get $20 of BTC!

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I like holding a number of different alts with Bitcoin as the base. It's also nice to earn many with one such as Hive and LEO at the same time and SIM while my city is growing in my sleep. We're in amazing times folks!

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Hive and LEO are two of my favourites, although that should go without saying!

I'm just getting more into Bitcoin of late. I've got enough alts.

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You've been lucky to call yourself an early adoptor!

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