Have you ever heard a friend or acquaintance suddenly talking about Bitcoin or other cryptocurrencies? Or maybe you often see news about Bitcoin prices soaring, then suddenly plummeting? Makes you curious, right? Why are so many people willing to invest in this digital asset? Especially for those of you who are just starting to invest, it's natural to be afraid of making the wrong move or even being scammed.
Relax, you've come to the right place! In this article, we'll dissect the reasons behind the Bitcoin phenomenon, not just from the technical side that makes you dizzy, but also from the psychological and emotional side that are often the main drivers. Let's get started!
1. Promise of Fantastic Profits (Fear of Missing Out)
This is probably the most popular reason. Who wouldn't be tempted to see the Bitcoin price chart rising thousands of percent in a few years? In 2010, for example, you could buy 1 Bitcoin for just a few thousand rupiah. Imagine if you saved it until its peak price at the end of 2021 reached more than Rp900 million!
This phenomenon is often called FOMO (Fear of Missing Out). Similar to when your friends are all following a new trend, you feel like you're "missing out" if you don't follow. Seeing other people make big profits from Bitcoin can trigger a strong desire to experience the same thing. Data from various surveys shows that the potential for high profits is the main attraction for retail investors, especially beginners.
2. Want to diversify assets (so you don't depend on one basket)
Ever heard the saying "don't put all your eggs in one basket"? This also applies to investing. Many investors, including smart and experienced ones, are starting to look at $BTC as an alternative asset.
Imagine you have all your money in a regular bank account. If inflation is high, the value of your money can decrease. Well, Bitcoin offers a different asset, not directly affected by central bank policies or the economic conditions of a country. Although the price of Bitcoin is very volatile, many see it as a "safe haven" or a place of value protection, similar to digital gold, especially in times of economic crisis. This is called portfolio diversification, which is spreading investment risk across different types of assets.
3. Belief in Future Technology (Blockchain is Cool!)
Behind Bitcoin is a revolutionary technology called Blockchain. In short, Blockchain is like a giant digital ledger that cannot be changed and is recorded transparently on many computers at once. This is what makes Bitcoin transactions safe, fast, and cannot be manipulated.
For many, investing in Bitcoin is investing in the technology of the future. They believe that Blockchain will change many aspects of our lives, from finance, logistics, to government systems. Wharton School Finance Professor Jeremy Siegel once said that "Bitcoin could become the new digital reserve currency." This shows the optimistic view of academics on the potential of the technology behind it. Investing in Bitcoin is a kind of support for this innovation.
4. Financial Freedom and Complete Control (Goodbye, Hidden Costs!)
Ever been annoyed because money transfers are subject to administration fees? Or the process takes a long time? With Bitcoin, you can send money to anyone, anywhere, anytime, with much lower fees and a super fast process. There is no central bank, no middleman. You have full control over your own assets.
This is very appealing to those seeking financial freedom. They feel they no longer need to rely on the traditional banking system which can often feel slow and bureaucratic. For some, it is not just about investing, but also about the philosophy of decentralization and independence.
5. Strong Community and Easily Accessible Education
You may have heard of the "Bitcoin Maximalists" or the very solid crypto communities. These communities actively share information, education, and even support each other during market downturns. Having a strong community provides a sense of security and emotional support, especially for beginners who may feel alone when they first start out.
Additionally, there are more and more resources available to learn about Bitcoin and crypto, from YouTube videos, articles, to online courses. This makes the learning process less intimidating, even for the novice.
So, Do You Need to Buy Bitcoin?
The decision to buy Bitcoin or other crypto assets comes back to you, your investment goals, and how much risk you are willing to take. It is important to remember that the price of Bitcoin is very volatile, aka it can go up and down drastically. So, never invest with money that you are not prepared to lose, okay!
Always do thorough research before investing. Understand the risks, understand the technology, and don't get carried away by emotions or bandwagons.
Comment below if you are still confused or have questions about Bitcoin and crypto investment! Don't forget to follow @Praja-013 for other interesting information and education about the world of investment!
