Can you make money just by holding bitcoin?
The answer is yes you can. It is not 100% guaranteed but you can. Once you got your bitcoin, you can already make profit by keeping it. It is a passive technique, meaning once you have the bitcoin there is no more work to be done. All you have to do is to keep your wallet secure and that’s all.
The reason you’ll profit from it over time is that bitcoin price is going to continually go up. And the reason that its price keeps going up is primarily scarcity.
Bitcoin is commonly referred to as the Digital Gold because it has numerous attribute same as Gold and scarcity is one of them.
What does Scarcity mean?
It means a limited supply. There is only a number of it to go around. A limited supply is not mainly a problem. The problem is when there is a mass of demand on it. In a situation that when you have larger and larger number of people wanting to get hold of something that is in short supply the value of that thing increases because people are willing to pay more and more for it to guarantee that they get so.
Gold is scarce because we know it is limited. Some of it were already dug out of the earth and some of it is still under the ground. In any case, we know there is only so much of it and it takes insufficient amount of time to dig more out if there is an unanticipated spike in demand. That is why bitcoin and Gold is very much alike.
Like Gold bitcoin is also limited in supply. Bitcoin also has to be mined like Gold but bitcoin is mined electronically while gold is mined physically. The total supply of bitcoin will only be 21 million and that will not going to change. Once it will all be mined, there will be no more can be created.
Why is the demand for bitcoin going to keep increasing?
The answer lies to how useful bitcoin is and to how many people are using it.
Bitcoin solves several huge problems that exists in the world. Thus, its only a matter of time before more and more people discover that its the solution to their problem and then they’ll want some too. We do not intend to explore all the different problems that bitcoin solves but lets just look one of them for to illustrate how bitcoin will become more valuable the longer you keep it.
Bitcoin is the first global currency that is not dependent by any bank or government. This makes it superior to typical currencies because it cannot be controlled by anyone. It cannot be created at will like regular currencies.
Bitcoin cannot be made to finance war unlike fiat money so in that since bitcoin can be the currency of peace.
Bitcoin is also the money for the internet age. We can now send photos, songs, videos, documents, and messages of all kinds to people on the other side of the world in seconds just by attaching them into an email.
If there is only ever going to be 21 million bitcoin how is that going to be enough for more than 7 billion people?
Bitcoin acts like a digital gold as we recall which means it can be broken into smaller pieces. You can have 1 kilogram barrel of gold or you can have 1000 one gram of it. Similarly, you can have one whole bitcoin or you can divide each bitcoin into a hundred million of pieces. So if a single bitcoin worth a million dollars, then the smallest denomination will be worth about a penny.
So get yourself some bitcoin, make sure it is stored safely, and keep your eye on the price as it makes it way to the moon.