Bitcoin was created as a response to the 2008-2009 market crash. This experience showed many people problems with the traditional financial markets, and because of people's desires for an alternative, Bitcoin was created. It was created to fix problems. Bitcoin is a peer to peer payment system that cuts out the middleman. It works without banks and financial authorities. After the 2008 market crash, people did not trust financial authorities as they held them responsible for the market crash itself. At that time, a payment system that eliminated the need for them was very sought after. 

With all this in mind, I believe that most people that have held Bitcoin over the last few years did not hold it to accomplish what Bitcoin was created to do. They didn't care about its value as a decentralized payment system. Everything was going to well where the value of a decentralized payment system seemed small. Bitcoin was always meant to be a currency but that is not why most people were investing into it. 

Now that we are in a market downtrend of huge proportions, I believe that most of the people holding Bitcoin as a get rich quick method and other reasons of that magnitude have already sold out of Bitcoin. I think that this is a good thing. Most people still holding Bitcoin are doing it because of their underlying faith in the asset itself and a belief in what Bitcoin truly can accomplish. Personally, I am ecstatic about this because, to me, it seemed like no one was actually holding Bitcoin because they wanted it to be a real currency option even though that was literally what it was created for. 

With this latest market downtrend, I think Bitcoin looks more appealing now than ever. Not because of the amazing price Bitcoin is currently trading at, but because the problems it was created to solve are more alive today than ever. 

The U.S. dollar is experiencing massive inflation after the creation of a huge amount of more dollars. Bitcoin has a fixed supply so something like that could never happen to it. The distrust for banks and financial authorities exists now more than ever, and Bitcoin solves this by not having to go through these third parties. As inflation rises and the market continues to crash, Bitcoin, and what it can do for people that adopt it, becomes more and more valuable.

Bitcoin and Ethereum are two of my largest individual holdings that is not an ETF. I am very bullish on these two cryptocurrencies, and since crypto as a whole has had a very bad 2022 so far, I wanted to give my thoughts on why the latest price decreases has not decreased my overall fondness of these two assets. 

I have reoccurring buy orders for Bitcoin and Ethereum so that every week I invest a certain amount of money into each of these cryptos. If I find an investment that I believe in long-term, I always set up a reoccurring buy order so that I can invest in it over a long period of time. Bitcoin and Ethereum are both something that I want to own as much as possible of so I buy both every week regardless of price. A common opinion that I get told about crypto is that there isn't any actual value behind it. I disagree with this sentiment when it comes to Bitcoin and Ethereum. I believe that there is actual value behind both which is why I continue to buy. 

I've already given my thesis on why Bitcoin has actual value behind it. One can read my thesis on it here - www.financebycwt.com/crypto-blog/why-bitcoin-is-valuable.

​Ethereum is something that I also believe has real value behind it. I believe that insanely valuable businesses will be built on its blockchain. I believe that millions will do business on the blockchain itself through owning the coin. To me, this will lead to the coin having an insane amount of value in the future. I like to look at Ethereum's blockchain as a company and Ethereum itself as the shares and when I look at the potential the "company" has, I want as many "shares" as possible. 

I don't care if Bitcoin or Ethereum goes up 20% next week or down 20% next week, I will be buying simply because the value that these coins have. I believe that these two coins will be two of my most profitable investments. I also want to use these coins to bring in revenue for myself through yield farming and staking and believe that that will be very profitable long-term as well.

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Bitcoin is a cryptocurrency that I believe is one of the greatest investments that one can make. Only time will tell if I am right or not, but in this article, I want to explain my theory on why Bitcoin is and will keep being valuable. My hope is that someone reading this will disagree with me and tell me why in the comments below because I hope that we can start a discussion on this topic, but for now, I will do my part and provide my reasons on why Bitcoin is valuable.

1. It accomplishes something amazing. Many people who are opposed to Bitcoin say that they don't believe in it because it doesn't actually do anything. I think that this could not be further from the truth. Bitcoin gives people the ability to transfer wealth all around the world without a third party. Imagine if one needed to transfer money to someone in a foreign country. How would they do it? Well, one could send a bank transfer assuming they do it when the banks are actually open because they are not open 24/7. They could use a service like PayPal although international transfers with PayPal are not free and those fees can end up being a large expense over time. If one wanted to avoid all of that, they could just transfer Bitcoin from their wallet to the other persons. This is one of the reasons that Bitcoin is so valuable. It accomplishes a need.

2. It works as a currency in a way where other things can't. Some of the biggest critics of Bitcoin are the supporters of precious metals like Gold or Silver. These things will never work as a currency in the way that Bitcoin does. Bitcoin is easy to verify as authentic while precious metals are not. Also, even our current currency faces limitations that Bitcoin doesn't. If I travel to a foreign country, I have to exchange my money for the other countries money. This causes problems because when I shop at other countries, I have to convert each item to my dollars to know how much of my money I am actually losing when at the end of the trip I retransfer back to my own money. It's difficult. Bitcoin would fix that. As Bitcoin becomes legal tender in more and more countries, I will now be able to go to a foreign country and instead of converting my money, I would just use my Bitcoin. This is another value that Bitcoin possesses. Also, imagine if one owns a business. If someone pays at the business by check, they must wait for the bank to clear said check. If one pays by card, they must also wait for the funds. With Bitcoin's lightning network, they see the money essentially instantly. Bitcoin has also been a currency that has seen a large increase in value since its creation. This is important. Since our current currency faces constant devaluation, it gives people an incentive to not have it. Why would one want something that will lose them buying power over a long period of time? Bitcoin has historically increased in value which gives people the incentive to want Bitcoin.

3. Bitcoin is scarce. There are 21 million Bitcoins in existence. It is impossible for anymore Bitcoin to ever exist. Scarcity alone isn't value, but since Bitcoin already accomplishes a need, the scarce element of Bitcoin provides huge value. With huge demand and very limited supply, it makes sense that Bitcoin would keep becoming more and more valuable because people will be willing to spend more and more money to have it. If one agrees with my first two points and believes that demand for Bitcoin will grow, then one must also agree that the scare supply of Bitcoin will create more value. 

These are three reasons why I believe that Bitcoin is valuable and will remain valuable. If one disagrees with me, I would love to hear why in the comments below.

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