As it turns out, some people strongly feel Bitcoin is an asset well worth investing in. That is, once takes all of the different opportunities and risks into account. Both consumers and big investors can find a certain appeal in Bitcoin; that much is certain.
When investing in Bitcoin, it is important to see the bigger picture. Despite its limited coin supply, the average Bitcoin holder will not own over 100 coins. That is, unless they were an early adaptor, or bought a nice supply of coins many years ago. Bigger investors, however, will most likely hold several dozens – if not several hundreds – of Bitcoin at any given time.
To accommodate their needs, Bitcoin exchange platforms need to provide ample liquidity. Over the years, Bitcoin liquidity has been solid and even increased throughout the years. Looking over the global trading volume, there is upward momentum throughout the years. If cryptocurrency is destined to ever go mainstream, we will need even more volume, though.
That being said, the average investor has other ways of spending money on Bitcoin as well Several ETFs have been launched over the past two years, which are all linked to the Bitcoin price. Although some of these offerings may overvalue Bitcoin by quite a margin, it gives cryptocurrency investing more mainstream appeal.
But there is more, as dark pools are slowly becoming the new trend across Bitcoin exchanges. Kraken, one of the premier cryptocurrency exchanges in the world, recently announced the launch of their dark pool. As those big buy and sell orders will not be visible in the regular order book, there should be far less volatility.
Despite all of these positive aspects, investing in Bitcoin remains a risk Similar to any other type of investment, there are no guarantees when it comes to Bitcoin. Granted, the potential for profit is very real, but only when looking at things from a long-term perspective. The same risks apply to consumers who invest in Bitcoin as this is not a get rich quick scheme by any means.
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