%20clear%20background%20-%20TM%20Logo.png)
Bitcoin has been declared dead too many times to count, but continues to escape.
Before we get into why 2024 may be a special year for Bitcoin, let me try to explain what it is without all the jargon. Bitcoin has the following unique characteristics as compared to traditional assets or currencies:
Digital: There are no physical Bitcoins that exist, unlike traditional assets (houses, cars) or currencies (dollars, yen).
Decentralized: Bitcoin does not rely on a single entity to maintain or process transactions. It is distributed across the globe, which is drastically different than the traditional banking industry and also not nearly as limiting. Anyone, regardless of age, sex, location, etc., may transact with Bitcoin if they have a cell phone. In America, we take for granted having a bank on nearly every corner next to a Starbucks, but the rest of the world is quite different.
Irreversible: Once a transaction is confirmed, it cannot be reversed.
Cheaper: Although fees fluctuate on the Bitcoin network, transacting in digital assets is generally cheaper than traditional means of sending money, especially internationally.
Trustless: To transact in today's society we require a level of trust. Trust in our bank or the person paying us with a check. By comparison, there is no need to trust or know anyone in the Bitcoin network. If I send you one Bitcoin ($BTC) to buy your used car, then the network will verify that I have the one $BTC and the transaction will be confirmed within minutes, not days.
Ledger is Publicly Available, Yet Anonymous: The Bitcoin ledger is available to anyone. You can view every transaction that's occurred. It's as if your bank statements were made publicly available, only they removed your name and other identifying information. There is no need for Chase or Bank of America to reconcile your account and send you a statement, because it's available to anyone, but you may still remain anonymous.
Limited Supply: The Federal Reserve continues to print billions of dollars each year, but with Bitcoin there will only ever be 21M Bitcoins in circulation.
The reason that 2024 may be a significant year for the rise of Bitcoin is based on regulatory approval of a Bitcoin ETF.
This opens up the market for potential investors in multiple ways:
Easier to Buy: To date Bitcoin, and other digital assets, are difficult to store. This is partly because you are acting as your own bank.
Retirement Accounts: If you are buying an asset that you expect to rise exponentially, then the best type of account is one that's tax-advantaged, such as a Roth IRA. The ability to purchase Bitcoin through an ETF opens up this entire market.
As with any asset, I have no idea what the future price of Bitcoin will be; however, there are many who are predicting a strong 2024 and beyond for Bitcoin!
If you are looking for a financial planner who understands digital assets, then schedule a free introductory meeting below. For less than $5/day, Walk You To Wealth is the most affordable way to access professional help.
Disclaimer: The information in this post is provided for your convenience only and is not intended to be treated as financial, investment, tax, or other advice. The information is intended to be educational and is not tailored to the investment needs of any specific individual. It is also not intended to be relied upon as a forecast and is not an offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are those of the author. Reliance upon the guidance and information in this presentation is at the sole discretion of the individual.
Comments