Bitcoin is one of the oldest and biggest digital currencies developed in 2009. Since then, it has experienced rising popularity and has become a trusted digital currency across the globe, inspiring the creation of other cryptocurrencies. If you’ve been looking to invest in Bitcoin, 2024 is the best time. Outlined below are four reasons to buy Bitcoin in 2024.
1. Bitcoin halving
Bitcoin halving involves reducing mining rewards by half. It occurs approximately every four years or after 210,000 blocks have been added to the Bitcoin blockchain. The recent halving event happened on April 19, 2024, cutting the reward from 6.25 BTC to 3.125 BTC per block. These events usually reduce the rate at which new coins are released into the crypto market by half, lowering the amount of Bitcoin available for supply, which maintains scarcity while increasing demand.
The rising demand drives the digital coin’s price higher, making it a good time to buy Bitcoin. The years a halving event has occurred have seen a rise in returns. The trend is expected to hold in 2024, meaning the Bitcoin prices are expected to reach their all-time high this year.
2. The approval of Bitcoin ETFs
The long-awaited Bitcoin ETFs (exchange-traded funds) approval happened on January 10, 2024, making the Bitcoin investing process more familiar and accessible to traditional investors. The approval marks Bitcoin’s rising recognition and acceptance as a recognized asset class in the mainstream financial sector. The recently discovered Bitcoin accessibility via ETFs allows more investors to participate in Bitcoin investing.
Additionally, Bitcoin’s ETF approval adds credibility and legitimacy to the crypto world. It’s a sign that regulatory bodies are ready to adopt digital tokens and offer a controlled framework for investors. The approval offers several investor benefits, including:
- A convenient way to gain Bitcoin exposure: Rather than going through the intricacies of creating and managing digital wallets, you can buy ETF shares through your brokerage accounts
- Greater portfolio diversification: Holding ETF shares allows you to indirectly diversify your Bitcoin basket, mitigating the risks associated with putting your money in one cryptocurrency
3. Bitcoin’s supply is finite
Bitcoin’s supply is finite and cannot be manipulated by financial institutions or governments, creating scarcity in the crypto market. This makes buying Bitcoin quite beneficial for investors. Additionally, Bitcoin’s supply is fixed, with new Bitcoin tokens going into circulation every ten minutes. This will go on until roughly 2140 when the crypto reaches 21 million tokens, its maximum supply.
A finite asset like Bitcoin attracts investors seeking a store of value. Once the crypto gets to the maximum supply, there won’t be any more tokens entering circulation. If Bitcoin’s demand stays consistent, the lack of additional supply can lead to BTC appreciating over time.
4. Growing adoption by countries
Crypto recognition is gaining momentum globally, with multiple countries adopting digital countries as a mode of payment. Countries like EL Salvador have formally embraced Bitcoin as a legal tender alongside the dollar, paving the way for other nations to follow suit. Other countries are also adopting cryptocurrency, including:
- The United States
- Ukraine
- Germany
- Brazil
- Vietnam
- Australia and more
This recognition enables governments to unlock new financial inclusion, economic growth, and innovation opportunities.
Endnote
Bitcoin investing comes with multiple benefits. Familiarize yourself with the reasons to buy Bitcoin in 2024.