Most of the time, investors leverage Bitcoin as a store of value as Bitcoin expands.. The cryptocurrency has gained considerable traction in the past few years, as this feature has enabled users to invest in it safely.
At the same time, its value compares with stocks, bonds, or gold, so it has become significantly reliable in the long term. Still, Bitcoin has some limitations that make other alternatives like Ethereum better for investors.
For example, it is based on energy-intensive technology, making it one of the most polluting cryptocurrencies. On the other hand, Ethereum switched to PoS and became sustainable by reducing blockchain energy usage by about 99%.
Hence, Bitcoin must evolve to remain the ideal choice for one’s portfolio. If if you want to learn how to buy Bitcoin, you can generate consistent returns for longer periods. So it would be a waste not to use it.
That’s why the cryptocurrency changes, with developers integrating new technological features into the network. Let’s see what they can do.
Table of Contents
The Beginning of Bitcoin NFTs
Ordinals are Bitcoin’s NFT tools, mimicking the concept in some ways. Developers created these assets because it was difficult for investors to mint NFTs on Bitcoin. So, they designed the Ordinals protocol, offering each Satoshi an individual identity that users can transfer or track.
Therefore, each Satoshi can be non-fungible as it is different from one another. Based on a Bitcoin transaction, each asset receives an inscription with data, whether it’s a picture or text. Users mine the transaction so that the data becomes part of the blockchain and can be viewed through Ordinals-based wallets.
Ordinals exist on the Bitcoin blockchain and are significantly immutable, whereas NFTs are usually stored off-chain, providing users with only a link for the asset. Hence, this feature attracts investors who value NFTs but want more benefits.
The Potential of Spot Bitcoin Expands ETFs
Spot Bitcoin exchange-traded funds (ETFs) have been thriving in the past year, offering investors significant convenience, liquidity, and tax benefits. Since the SEC also approved them, users can freely and legally invest in them to diversify their portfolios. They did this without any regulation barriers.
While they’re easy to use, as investing in a BTC ETF doesn’t automatically make you the holder of the underlying asset, ETFs can still be pretty volatile and put users at risk of cyber theft. Therefore, investors must be cautious about how they get into BTC ETFs.
Since the start of the year, when the SEC approved the first spot BTC ETFs, ten more are containing to be accepted on the market and have already begun trading. Every ETF fee differs based on the strategy proposed.
Earn Free Bitcoin While You Shop
Lolli makes earning free Bitcoin easy while you shop online. It’s like adding a bonus to your regular spending. First, you install the Lolli extension for your browser. Then shop at your favorite online stores.
Lolli partners with over 50,000 top retailers, so you’ll have plenty of options. When you make a purchase, you get a percentage back in Bitcoin. It’s that simple.
You don’t have to change your buying habits or spend extra bucks. Just shop as usual and watch your Bitcoin balance grow as Bitcoin expands. It might just be the easiest way to start stacking some sats without any effort.
The Efficiency of the Lightning Network
Bitcoin’s Lightning Network uses blockchain technology and smart contract functionality to allow users to benefit from instant payments. At the same time ensuring high security and support for massive transaction volumes.
The Lightning Network created bidirectional payment channels through which two parties can create a ledger entry to create common transactions. This is done without broadcasting them to the blockchain. Therefore makes it easy to perform transactions off-chain, ensuring scalability, low costs, and cross-blockchain availability.
The Lightning Network has been a considerable addition to the crypto industry, as many exchanges partnered with it. In the near future, stablecoins will be brought to Bitcoin through the Taproot upgrade. Anyone will be able to transact crypto globally at inexpensive fees.
The Future of Bitcoin DeFi
DeFi, or decentralized finance, is believed to be the future of our society’s financial direction, as it provides decentralization, transparency, and immutability in the real world. Initially, Ethereum powered up DeFi as the ecosystem was more expansive and stacked with developing tools, but Bitcoin aims to bring DeFi to the mainstream soon by supporting these technologies.
The concept is known as BTCFi, and it will unlock offers of smart contract compatibilities to access scaling solutions. At the same time, the technology will better incentivize Bitcoin miners since their rewards were diminished by half after the recent halving.
Although BTCFi is still in development as a concept, it could propel Bitcoin to adoption sooner than expected. It could bring innovation to traditional financial systems that are already approaching Bitcoin as a store of value assets.
The Aspiring Bitcoin Expands Games
Cryptocurrencies and gaming blend together perfectly, developing the play-to-earn system on blockchains and allowing people to earn coins and other benefits by having fun on these gaming networks.
While in most cases, the Ethereum network was home to unique decentralized games, such as Decentraland or the Sandbox, Bitcoin could enter the world of crypto gaming since it would offer many more benefits to users.
For now, you could try a few Bitcoin-based games, such as Haste Arcade, Cryptofights, or Durodogs, but the ecosystem isn’t that expanded and explored. Still, play-to-earn games based on Bitcoin can provide tradable assets on popular marketplaces.
Bitcoin Approached with Caution
Despite its great benefits, Bitcoin is significantly risky if not handled correctly. Investing in Bitcoin comes with regulatory uncertainties, market risks, and the possibility of being scammed, and few investors and users are prepared to withstand these circumstances.
While regulation might change and the market will always be risky, scams are the most difficult to deal with. Phishing, fake ICOs, and giveaway scams are becoming more complex, with hackers finding ingenuous ways to confuse even careful and professional investors in giving access to their assets.
Researching the subject will expose you to numerous ways Bitcoin is stolen, so it’s best to learn how these attempts work and try identifying them to protect your assets.
What Do You Think About Bitcoin As It Expands?
Bitcoin is the first cryptocurrency created for investors and has served significant returns to users in the past decade, becoming, in some instances, more reliable and valuable than gold.
However, Bitcoin’s limitation of a store of value will end soon as its functions expand slowly but steadily, approaching technologies similar to NFTs and smart contracts through Ordinals and the Lightning Network.
Still, it can remain risky to those interested in using it, so people should be wary about its benefits. Have you begun to use Bitcoin or any other crypto for your business?
She has 30+ years of experience in marketing/advertising with 12 years of experience in content marketing, social media, blogging, and SEO.
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