Despite some of the obvious objections people might make when it comes to investing in Bitcoin and digital currency, there are plenty of reasons why this is the smart move. While any type of investment always carries a certain risk, Bitcoin presents some interesting arguments that one would not find in other investment opportunities.
Also read: Community Efforts To Boost Bitcoin Education
Bitcoin Is Different From Anything Else You Know
Investing in Bitcoin has everything to do with gambling on how the BTC price will evolve in the near and distant future. Volatility is an interesting creature, as it can lead to massive gains and losses based on it’s actions. Bitcoin is one of the most volatile investments one can make, which opens up a lot of opportunities for interested parties.
Over the past few months, there has been a major increase in Bitcoin’s price. For those who invested in Bitcoin before that date, have probably made a very nice profit on their original deposit. At the same time, those who invested in Bitcoin during one of its peaks are impatiently waiting to break even or at the very least make a small profit. In a way, Bitcoin is far more exciting compared to stocks or other types of assets, as the market can be followed in real-time on a 24/7 basis. Furthermore, if one is not sastisfied with Bitcoin’s volatility as is and wants to take it up a notch, check out this chart for a list of exchanges that support margin trading. You can set your leverage so that a very slight price movement is reflected as 3x 5x or even 10x the amount.
Part of this volatility can be attributed to Bitcoin’s fixed supply cap of 21 million coins. In yesterday’s article, we mentioned how some people feel inflation in Bitcoin would be a good thing. But in truth, there is no need for inflation, as that wouldn’t make Bitcoin any better than fiat currency or central banks. 21 Million BTC creates plenty of chances for investing in Bitcoin.
The hype surrounding Bitcoin has not gone by unnoticed, as more and more merchants are starting to accept digital currency payments. Booking flights and hotels, buying video games, or getting a new Windows license, can all be paid in Bitcoin these days. Those who began investing in Bitcoin in the early days are paying all of these expenses with profits they made throughout the years.
One interesting factor to keep in mind is how governments all over the world are slowly warming up to Bitcoin and the underlying blockchain technology. During the early days of digital currency, governments rejected the idea of Bitcoin altogether, but now that regulatory frameworks are being created, the overall tone seems cautiously positive in most cases.
Last but not least, Bitcoin gives investors an excellent opportunity to diversify their portfolio, without running into any bank restrictions. Investing in Bitcoin means the end user is in full control of their funds at any given time, rather than trusting a third party to keep it safe. This is something entirely different compared to what investors are used to, and most of them have taken a liking to it.
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