I just bought my first bitcoin. Here is why you should do it too.

 For most people, cryptocurrencies can seem very abstract and risky. However, the risk is now everywhere including your bank account which might become worthless due to the defacto extreme “printing” of paper currency.

Cryptos, on the other hand, have uncertainty in both security, legislation, and technology as well as intense competition between Bitcoin and emerging stars Ether, Litecoin and Ripple. There is plenty of technical and fundamental analysis available on the market.

For me, it was three insights outside of traditional analysis that lead me back to this market right now.

1-Its about increasing lack of trust in fiat currency. In the last ten years, most markets have been flooded with liquidy. No matter if you are living in a dollar, euro or another currency-denominated country the effects on pricing will be seen sooner or later. It makes sense that intensive stimuli will lead to inflation. Why? Simply put because more liquidity and the same amount of goods and services will lead to price increases.
Considering the extreme volumes the future value of your bank savings and retirement fund could actually be worthless.

Assume you sign up into this, you have gold and crypto as the alternative investments (apart from traditional “safe bets” like utilities, property, fixed assets)

2-Its about the brand.

Bitcoin is established as a defacto brand for cryptocurrencies. Most people have heard about it, and the alternatives are not well known. I would say brand awareness is extreme since Bitcoin has been in the headlines for years now. Even in groups that are not traditionally hooked into investments Bitcoin is known and talked about.
Bitcoin is my choice for now.

3-Its about ease of market access

Compared with just a few years ago when bought my first Bitcoins in a local wallet simplicity is a big difference. Today anyone can invest via a relatively safe online marketplace like Bitstamp. My big wow was hower when I tried the solution provided by Revolut. A totally smooth solution and transfer between your card and bitcoin vault. When other banks replicate this solution it will drive demand from retail investors of all kinds.

So with those reasons for being bullish how is supply and demand.

Since Bitcoin is created out of nothing the supply side is given. 21m Bitcoin will exist at its peak.

What about demand. How big can it grow if more people are looking for an alternative to increasingly worthless fiat money? Here is an example showing how fast supply will dry up.

Sweden has 5 million adult investors. The world 500 millions.
Assume an investor should hold 10% of their savings in Bitcoin long term. 50 000 Swedes have a net above 1 m USD (world 50m). Swedens about 200 billionaires hold a total fortune of USD 200 billion USD (own estimate). Investing 5% in crypto would be 10 billion USD>>1 250 000 bitcoins

Remaining 40 000 lower-end dollar millionaires should hold one bitcoin each. >>40 000 BTC
10 000 higher-end dollar millionaires in Sweden should hold 10 bitcoins each>>100 000 BTC
The remaining 4, 9 m individuals should hold 0.1 Bitcoin each>> 495 000 BTC

Summing up this demand would be 1.9 m Bitcoins for tiny Sweden alone (out of 21m available).
World demand should be about 100 to 1000 times higher but I didn't dare to spend time on that calculation since it was quite obvious where it would lead.

After a final check of the technical and other fundamentals, it was clear. It makes sense to buy and hold Bitcoin now before everyone is in the market.

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