Reasons Why You Shouldn’t Hesitate Investing in Bitcoin
Indeed, Bitcoin has suffered several crashes since its introduction by Satoshi Nakamoto in 2009. However, this virtual currency has exhibited greater resilience, with its rising value over the years. Even with its high volatility, Bitcoin remains an excellent digital asset to buy.
For a new investor thinking about buying this digital currency, the crypto landscape can seem confusing. Some of the information you’ll read online can even intimidate you. That’s because people have widely varying perspectives about Bitcoin. If unsure whether Bitcoin is a good investment, here’s why you shouldn’t hesitate to buy this digital currency.
Accelerating Bitcoin’s Adoption
Bitcoin’s global adoption is continuously increasing. For instance, the total number of digital wallet users increased in 2020. And more people created blockchain wallets in 2021. Ideally, Bitcoin adoption is growing by millions. And this only hints at its rising popularity globally.
Additionally, if you are a bitcoin buyer then you can start purchasing bitcoins and sending them to newly-created wallets. Platforms like Bitcoin Buyer are getting more new customers every day. Also called crypto exchanges, these platforms allow people to buy Bitcoin using fiat money. Both institutional and retail buyers are increasing because everybody wants to chase the current Bitcoin momentum. And with increasing Bitcoin’s demand, its value will continue to grow.
Bitcoin Always Surpass its All-Time High upon Recovering from a Crash
A primary reason why some people fear investing in Bitcoin is its historically volatile price. Ideally, Bitcoin’s price can increase or drop significantly within a brief period. This cryptocurrency has experienced troughs and peaks over the last decade of its existence. However, this virtual currency has always emerged stronger after every crash.
Perhaps, the low number of tokens in circulation is the reason for this volatility. But, the increasing Bitcoin adoption by institutional investors and merchants will boost circulation. Thus, the world will have more bitcoins in circulation, thereby reducing this volatility.
But, Bitcoin’s volatility is not all that bad. Some investors use it to their advantage by trading Bitcoin for profits. For instance, you can purchase Bitcoin at its lowest price, keep your tokens in a digital wallet, and then sell them when this cryptocurrency’s value increases to make profits.
Value Proposition Makes Bitcoin Perfect for Macro Climate
Satoshi introduced Bitcoin during the 2009 global financial crisis. At this time, the world was revolving around quantitative easing, government bailouts, and bank failures. Thus, Satoshi introduced Bitcoin into the wild where most people ignored it.
After a decade, the world has had a financial crisis with low interest rates, high quantitative easing, and more bailouts. Both companies and individuals have a growing awareness of the unique value proposition for Bitcoin. They also know Bitcoin’s position in the macro-environment.
Paul Tudor Jones, a prominent macro investor, said that Bitcoin compares to gold back in the 1970s. When COVID-19 hit the world and governments began implanting movement restrictions like lockdowns and people lost their jobs, some turned to the internet to find ways to make money online. Bitcoin trading became one of the activities that people wanted to do to make money.
What’s more, this virtual currency’s ability to maintain its value even during an economic crisis has captured many people’s attention. Most people have lost faith in government-issued money because it’s subject to the central bank’s manipulation. Consequently, some people opt to use Bitcoin for value storage.
Cryptocurrency awareness is increasing globally. More people accept and use Bitcoin now than a decade ago. What’s more, large companies like Microsoft and PayPal accept this virtual currency. All these indicators hint at a bright future for this electronic currency. And they are the reasons you shouldn’t hesitate to invest in it. However, invest what you can lose, and life goes on because you can lose a significant amount of money due to the volatility of this virtual currency.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
- » Chairman of BAIC: Bankruptcies in Bulgaria are Inevitable, the Economy will Stop
- » Forecast: Basic Food Prices in Bulgaria will Rise by Another 7% by the End of the Year
- » Bulgarians Living Abroad have Started Sending Less Money to their Relatives in Bulgaria
- » World Bank Raises Growth Forecast for Bulgaria
- » Over BGN28 billion has been syphoned off from Bulgaria since 2005
- » Fitch Ratings Affirm BDB Rating at BBB, Outlook Positive