Why do people invest in Bitcoin?

[henmark]

There are lots of reasons why people have invested in bitcoin and it is worth knowing that, there is difference in adopting bitcoin and investing bitcoin.
Let me explain further, people can adopt bitcoin for their regular daily transactions without having to invest in it for holding purposes but rather for transactional purposes while investing simply means that, one would be hold b the coin over a period of time either for longer time or short term but these set of people are not interested in spending bitcoin daily but just focused on buying and accumulating for several reasons but one major reason why people hold is to get a reasonable return on their investment over a period of time which is one thing bitcoin has proven to offer .

You are wrong to say that investing is different than adoption, because adoption basically means to accept something and use it, regardless of how you use it. So whether someone is using Bitcoin as an investment asset, or a medium of exchange, it still makes them adopters. You probably know or should know that the majority of the people who are involved into Bitcoin right now are using it as an investment asset, and since we know that the value of an asset only increases if there is continuous adoption, but based on your logic, Bitcoin still has very low adoption because the percentage of people who use it as a payment isn't that high for now, but Bitcoin still managed to hit $126k in this recent bull run.

Other than that, all these institutions that are getting involved, buying and storing so many bitcoins as either investments or reserves, do you also think that they don't fall under institutional adoption just because they are not using those bitcoins for making purchases? Well, your concept about adoption is flawed, and I hope you change it, because every single person who gets involved, even if they just buy and sell Bitcoin on a daily basis to make some money, they are all included in the adoption, and those buying and holding are even a bigger part of the adoption, I would say.

[Rengga Jati]

I’m still a beginner and trying to understand Bitcoin better.
 I’d really appreciate hearing different opinions from people in this community.
What could made people decide to invest in Bitcoin?

There are many cryptocurrencies available. You can check the list on the following website:
CMC
Of the many cryptocurrencies, Bitcoin is ranked number one because it was the first cryptocurrency. Bitcoin has a high value, so its trust and reputation are beyond doubt.

But if you're going to invest in Bitcoin, do it wisely. Use only cold money. Also, remember about money management and risk management. Never be greedy or easily panic when investing. DYOR as always.

[kawetsriyanto]

I think this thread/topic should be in Beginners & Help or Bitcoin Discussion board. 

What could made people decide to invest in Bitcoin?

There must be varied reasons. We can't generalize it.
Besides its potential bigger price in the future, I personally invest in Bitcoin because it is one of the easiest investment. I can buy-sell it at any time, I can control the wallet myself, and I don't need to have huge money to own Bitcoin asset. Other assets won't be as easy as Bitcoin to own it.

Was it because of inflation, long-term growth, financial freedom, or something else?

All of them can be the reasons that people finally decide to invest in Bitcoin.

And for someone just starting out, what is one important thing you think I should understand before investing?

Learning everything about Bitcoin and its basic investment matters. I think it is the most important thing to understand before someone decides to invest in Bitcoin.

[SPIDERMAN008]

Well possibly other members must have already said do your own research. I will keep mine simple people invest in Bitcoin due to inflation of fiat currency, easy transactions from overseas, and also for personal security/decentralization, and so many more. Its potential is unlimited because the technology keeps evolving. Only 17 years of existence, and almost everyone around the globe has heard about Bitcoin though not everyone has adopted it yet because most folks don't believe in it, Most of them who have invested in a shitcoin because of hype ended up calling the entire crypto space a scam, while some still feel it's complicated because, unlike fiat currency that is a unit of account, Bitcoin isn't for that we still need fiat currency to determine its value. My best advice for a newbie is for you to invest based on your standards. If you are looking for a quick profit then you will probably end up selling at a loss. And lastly stay away from influencers online. That's all.....

The inflation, international transfer and decentralization you mentioned are definitely important advantages of Bitcoin. The main point of Bitcoin comes from its fixed supply, due to which Bitcoin works against inflation. Fiat currency does not have a limited supply, the government can print it unlimitedly. But Bitcoin is predictable in advance , the total supply is limited to 21 million.

And BTC ensures financial freedom of people. Bitcoin can be owned without any third party, where a person acts as his own bank. Even if you have a balance in a bank account, access is through an institution. But there is no institution in Bitcoin. Bitcoin can be transferred from one wallet to another from any location at any time, as long as you have an internet connection.

And speaking of gold, the growth of gold is much lower than BTC , because the supply of gold is not limited. And regarding altcoins, I think most of them are fraudulent coins, where there is a central authority or the developers themselves create artificial hype in the market and increase the supply. Even if the price increases temporarily, it starts to decrease very quickly. Many tokens don't have much value in the market.

[Royal Cap]

What could made people decide to invest in Bitcoin?

Honestly people come to Bitcoin mainly for long term growth. And I would say that the biggest thing you should understand as a newbie is patience. The market price will fluctuate every day, so don't panic by looking at the price again and again, It is actually the most comfortable to just buy and hold without rushing in the market. It is a bit like buying land in a good place in the countryside and leaving it, which gives a must good returns in the long run. So, instead of thinking about becoming rich overnight, come here with the mindset of giving it time.

[Iranus]

There are lots of reasons why people have invested in bitcoin and it is worth knowing that, there is difference in adopting bitcoin and investing bitcoin.
Let me explain further, people can adopt bitcoin for their regular daily transactions without having to invest in it for holding purposes but rather for transactional purposes while investing simply means that, one would be hold b the coin over a period of time either for longer time or short term but these set of people are not interested in spending bitcoin daily but just focused on buying and accumulating for several reasons but one major reason why people hold is to get a reasonable return on their investment over a period of time which is one thing bitcoin has proven to offer .

You are wrong to say that investing is different than adoption, because adoption basically means to accept something and use it, regardless of how you use it. So whether someone is using Bitcoin as an investment asset, or a medium of exchange, it still makes them adopters. You probably know or should know that the majority of the people who are involved into Bitcoin right now are using it as an investment asset, and since we know that the value of an asset only increases if there is continuous adoption, but based on your logic, Bitcoin still has very low adoption because the percentage of people who use it as a payment isn't that high for now, but Bitcoin still managed to hit $126k in this recent bull run.

Other than that, all these institutions that are getting involved, buying and storing so many bitcoins as either investments or reserves, do you also think that they don't fall under institutional adoption just because they are not using those bitcoins for making purchases? Well, your concept about adoption is flawed, and I hope you change it, because every single person who gets involved, even if they just buy and sell Bitcoin on a daily basis to make some money, they are all included in the adoption, and those buying and holding are even a bigger part of the adoption, I would say.

Exactly. Adoption doesnt necessarily mean using Bitcoin for everyday payments. It doesnt really matter what people use Bitcoin for, as long as they are taking part in the Bitcoin ecosystem. That can still be considered adoption.

However, we have to admit that Bitcoin is mainly being adopted today as an investment and store of value, rather than a mean of payment. I think that's the part we need to distinguish clearly.

It's fair to say that Bitcoin has already seen widespread adoption, but when it come to using Bitcoin in everyday life, adoption is still pretty limited.

[BitBakerr1]

What could made people decide to invest in Bitcoin?

Honestly people come to Bitcoin mainly for long term growth. And I would say that the biggest thing you should understand as a newbie is patience. The market price will fluctuate every day, so don't panic by looking at the price again and again, It is actually the most comfortable to just buy and hold without rushing in the market. It is a bit like buying land in a good place in the countryside and leaving it, which gives a must good returns in the long run. So, instead of thinking about becoming rich overnight, come here with the mindset of giving it time.

Yes, when you want to invest in bitcoin you need to be very patient, bitcoin investment usually takes time for it to give you profit so if you don’t have patience, you cannot invest and get profit from bitcoin investment.
I have seen someone who sold his bitcoin because according to him, he cannot wait for that long term. there are people who are actually not interested in bitcoin because of the long process it takes to give profit.

Anyone who comes to bitcoin investment in order to become rich overnight the person don’t actually know about bitcoin.

[Tetu100]

And for someone just starting out, what is one important thing you think I should understand before investing?

Recently, I realized that most people coming into Bitcoin are people who want money, like for investment purposes, which, for me, we can't blame them; that is one of the many benefits Bitcoin can give, and Bitcoin has already proven it for all over the past years.
What's only issue is these people are too greedy that does not learning anymore how Bitcoin works, even the basics and later if they will lose money = they will blame Bitcoin.

You see one thing is that, those that are eger to get profit over night forgetting about the needful are mostly the traders or the seasonal investor that are only there for quick profit . They are just good in that and at the end of the day give out negative narrative about bitcoin forgetting that it was all their fault.

However, as an investor or newly started investor, what is supposed to go through his mind first is that bitcoin is not a get rich scheme. He or she should endeavor to know it few basics to start with then probably improve overtime, cuz it's important. Have a long-term mindset and I'm pretty sure that any dude that tow this path will definitely make it in his  investment.

[Pandu Geddon]

He or she should endeavor to know it few basics to start with then probably improve overtime, cuz it's important. Have a long-term mindset and I'm pretty sure that any dude that tow this path will definitely make it in his  investment.

I know someone at the usual place where my friends and I have coffee. That person ended up becoming a friend until now. He even invested in Bitcoin earlier than I did. But he still keeps his Bitcoin on a local exchange in our country. I don't know how he became interested in investing in Bitcoin, but he routinely deposits money into a centralized exchange and buys Bitcoin. He hasn't made any withdrawals for several years.
I’m not sure whether he knows about information regarding bankrupt centralized exchanges. He is a busy office worker, but such information should be easily accessible if following social media. I know he is someone who understands investments. But he might not be looking for more detailed information on how to store Bitcoin more securely.

[Ayers]

And speaking of gold, the growth of gold is much lower than BTC , because the supply of gold is not limited.

i agree with most of what you said, but i don't really agree with this part. that's not entirely correct, and it's a bit of a apples to oranges comparison.

frist, gold has a finite supply and it's also a decentralized asset in physical form. second, the gold market is a lot bigger than Bitcoin. if i remember correctly, gold's market cap is around 20 times larger than Bitcoin's right now . so it doesn't really make sense to compare the two and say gold is growing slower than Bitcoin.

only when bitcoin's marketcap gets close to gold's and it still grows faster than gold can we really say bitcoin has a higher growth rate.
bitcoin has huge potential, but there's no need to exaggerate it more than necessary.

[puloweh555]

What could made people decide to invest in Bitcoin?

Honestly people come to Bitcoin mainly for long term growth. And I would say that the biggest thing you should understand as a newbie is patience. The market price will fluctuate every day, so don't panic by looking at the price again and again, It is actually the most comfortable to just buy and hold without rushing in the market. It is a bit like buying land in a good place in the countryside and leaving it, which gives a must good returns in the long run. So, instead of thinking about becoming rich overnight, come here with the mindset of giving it time.

Many people eventually decide to invest in Bitcoin because they have realized Bitcoin potential as a long-term growth asset due to its limited supply, and even now, Bitcoin is also seen as a hedge against inflation. Besides that, a lot of people are attracted to Bitcoin because of its decentralized nature and history of high returns, even though Bitcoin can also be quite volatile. This is why people are more interested in investing in Bitcoin than other assets especially since Bitcoin has already seen widespread adoption.

Of course, the main key to success in Bitcoin is patience because the price of bitcoin can swing sharply every day. So the most sensible strategy for beginners, as Nada said, is that they need to have a long-term mindset so they can have the mental strength to buy and hold without constantly watching the charts. Yeah, it's similar to buying land in a strategic location and letting its value grow over time. Having this kind of approach and mindset is far more realistic than hoping to get rich quick.

[Cgrexp]

And for someone just starting out, what is one important thing you think I should understand before investing?

Recently, I realized that most people coming into Bitcoin are people who want money, like for investment purposes, which, for me, we can't blame them; that is one of the many benefits Bitcoin can give, and Bitcoin has already proven it for all over the past years.
What's only issue is these people are too greedy that does not learning anymore how Bitcoin works, even the basics and later if they will lose money = they will blame Bitcoin.

You see one thing is that, those that are eger to get profit over night forgetting about the needful are mostly the traders or the seasonal investor that are only there for quick profit . They are just good in that and at the end of the day give out negative narrative about bitcoin forgetting that it was all their fault.

However, as an investor or newly started investor, what is supposed to go through his mind first is that bitcoin is not a get rich scheme. He or she should endeavor to know it few basics to start with then probably improve overtime, cuz it's important. Have a long-term mindset and I'm pretty sure that any dude that tow this path will definitely make it in his  investment.

The problem often lies in the expectations of investors. Those who enter the market without understanding the essentials about Bitcoin and hoping to make big profits. They give excessive importance to short-term price fluctuations. But when the market goes in the opposite direction, they quickly become disappointed, many start blaming Bitcoin. However, the main reason for their losses may be excessive expectations, insufficient knowledge or making decisions at the wrong time. Instead of guessing the price of Bitcoin, if an investor focuses on building wealth according to his financial capacity over a few years. Then the possibility of making emotional decisions due to short-term volatility may decrease. A mature investor will understand that the market will not move according to his expectations. Therefore, he will accept the possibility of profit as well as the possibility of loss in advance.

[fredericktaylor]

People invest in Bitcoin, many of whom have different plans, especially some for their financial development, some to get rich, and some for financial security. Bitcoin is an independent currency, in this case, those who want to get their financial freedom invest in Bitcoin for a long time. On the other hand, many people do not keep money in the bank or in fiat currency, but rather they keep it in Bitcoin only to protect themselves from inflation. If you invest in Bitcoin, then you must plan it for the long term so that you can benefit a lot from it in the future. Moreover, there is a limited supply of Bitcoin, no one can control it and increase its value in the future. The amount of money you invest now can get several times the return in the future, and if you can hold it safely, you will also have financial security and privacy.

You said it very well, there are many logical reasons to invest in Bitcoin, among which I will highlight some of the main reasons. First of all, Bitcoin has brought financial freedom to people, which is a very important thing. In addition, due to its decentralization, people are showing more interest in investing and due to the limited supply of Bitcoin, people are investing with confidence and holding it for a long time, which plays a big role in protecting people's valuable money from inflation, thus encouraging people to invest more.

Bitcoin has completely protected investors from the government's specific banking process, as a result of which an investor can conduct Bitcoin transactions completely independently without facing any banking problems. In addition, by investing consistently with a long-term plan and holding it for a long time with confidence, the investors can get all the benefits from Bitcoin in the future that are never possible through any other investment. As time passes, people's trust in Bitcoin will continue to increase more than before, resulting in an increase in the amount of investment in Bitcoin.

[Makus]

A lot of people invest in Bitcoin because they know the value and potential Bitcoin has and the aim is to make profit from it in the nearest future. But asides from making profit people also invest in Bitcoin for the purpose of securing their assets, decentralization is what Makes some people save in Bitcoin, instead of putting their money in the bank to be under their control they buy Bitcoin and keep it for a long period of time. If anyone has their own personal reasons it is important to also add financial stability as well because that is what is important.

[RockBell]

What could made people decide to invest in Bitcoin?

Honestly people come to Bitcoin mainly for long term growth. And I would say that the biggest thing you should understand as a newbie is patience. The market price will fluctuate every day, so don't panic by looking at the price again and again, It is actually the most comfortable to just buy and hold without rushing in the market. It is a bit like buying land in a good place in the countryside and leaving it, which gives a must good returns in the long run. So, instead of thinking about becoming rich overnight, come here with the mindset of giving it time.

People already view Bitcoin as an asset, and since it's a long-term investment, that's one of the main reasons those who understand its value always take it seriously. However, the nature of Bitcoin is what scares most of them, and they need to realize that it's not even a big deal. If you are interested in investing in Bitcoin, you must be prepared so that you don't even make the mistake of selling early, and if you are going to sell early, it will be better for you.

Additionally, some believe that if they invest in Bitcoin, they should immediately be profitable. However, this is not the case, and we must be ready so that, in the event that our expectations are not fulfilled, we may sell. In my opinion, this is not the proper course of action for investors.

[YOSHIE]

Why do people invest in Bitcoin?

Investing and trading in the crypto market, for me it's a choice, people carry out trading and investment activities with the main goal of Bitcoin having high profit potential, that's the view of people in general, that's the reason people want to do it.

Although many people say other goals and options such as limited supply, protection against inflation, decentralization and so on.
In essence, investing and trading crypto is not much different from the way they do it in the real world, people come to do all that to get more profit and economy, more profits and economy, considering that Bitcoin continues to grow and its value always rises with every phenomenon that occurs such as halving, in fact people are interested in making Bitcoin a trading and investment asset in the long term.

[Supreme Donvic]

What could made people decide to invest in Bitcoin?

Honestly people come to Bitcoin mainly for long term growth. And I would say that the biggest thing you should understand as a newbie is patience. The market price will fluctuate every day, so don't panic by looking at the price again and again, It is actually the most comfortable to just buy and hold without rushing in the market. It is a bit like buying land in a good place in the countryside and leaving it, which gives a must good returns in the long run. So, instead of thinking about becoming rich overnight, come here with the mindset of giving it time.

People already view Bitcoin as an asset, and since it's a long-term investment, that's one of the main reasons those who understand its value always take it seriously. However, the nature of Bitcoin is what scares most of them, and they need to realize that it's not even a big deal. If you are interested in investing in Bitcoin, you must be prepared so that you don't even make the mistake of selling early, and if you are going to sell early, it will be better for you.

Additionally, some believe that if they invest in Bitcoin, they should immediately be profitable. However, this is not the case, and we must be ready so that, in the event that our expectations are not fulfilled, we may sell. In my opinion, this is not the proper course of action for investors.

You need to understand that there are people who are making profit from Bitcoin by investing in a short period of time and they are Bitcoin traders, it is not only the long time investors that are making money from Bitcoin, short term investors are also making money from Bitcoin, there are some people that prefer trading Bitcoin than accumulating and holding it for a very long term.
However the best is to accumulate and hold bitcoin for a very long term because it is less risky, the trading part of Bitcoin is actually very risky and some people usually lose their money when trading.

The point is let's not totally condem bitcoin trading because there are people making money from it, it's best we just tell people how risky it is.

[Crakryptvest]

Honestly people come to Bitcoin mainly for long term growth. And I would say that the biggest thing you should understand as a newbie is patience. The market price will fluctuate every day, so don't panic by looking at the price again and again, It is actually the most comfortable to just buy and hold without rushing in the market. It is a bit like buying land in a good place in the countryside and leaving it, which gives a must good returns in the long run. So, instead of thinking about becoming rich overnight, come here with the mindset of giving it time.

This is right, additionally people also invest in Bitcoin because of it's value and that specially for a long-term, some investors that had foresight at some point failed as time passes by and that's because they deviated from the real goal and started pursuing unrealistic goals, there's no short cut to success which is what Bitcoin symbolize, as an investor that wants succeed in Bitcoin investment, one must understand that there are must be ups and dumps, these are the action of Bitcoin we should expect, but it shouldn't stop of from buying gradually regardless of any market condition, the benefit of Bitcoin is in the long-term, which every Bitcoiner should be are of.

[Pressurizedem]

 There are so many reasons why people place invest in Bitcoin, and I think this all depends on the individual. Some persons just want to save money for the future, while some persons just want want it to multiply and yield so much profit for them. It also depends on the type of investment you want to do, either long term m or short term, if it is long term, then there is no need to rush in this one because it normally requires patience, and endurance. In as much as it less risky, then is everything need also be careful, and be cautious about the amount you invest in it, else, it can be dormant even depreciate.

However, the day trading is opposite of long term trading, while the day trading is just a matter of time and you will get your outcome,  and it is also very risky, the long term investment is not like that, but the one that is most preferred is holding for a long term, in that case, you are saving for the future.

[liasbaa]

I’m still a beginner and trying to understand Bitcoin better.
 I’d really appreciate hearing different opinions from people in this community.
What could made people decide to invest in Bitcoin?
 Was it because of inflation, long-term growth, financial freedom, or something else?
And for someone just starting out, what is one important thing you think I should understand before investing?
I’m here to learn, so I’d love to hear your honest opinions and experiences. 🙏🙏
 I believe  it will  also  help  other beginners like me 😊

Initially, people are attracted to Bitcoin investment for the purpose of earning profit against their capital. Gradually, when a person gains knowledge about Bitcoin, they change their attitude and change towards long-term investment rather than short-term goals. They also realize that Bitcoin is not just for making money its a store of value and valuable digital asset. They hold it through their excess funds or through discretionary income. Due to inflation, the available cash funds of people start depreciating, they accumulate Bitcoin as a strategy to prevent that depreciation by holding Bitcoin.

If a new investor has available and excess funds, I would advise him to start accumulation Bitcoin now. Start with the knowledge you have gained and after starting, gain basic and technical knowledge about Bitcoin. Without spending time in gaining knowledge before investing.