Bitcoin is a form of cryptocurrency that was conceptualized and used between 2008 and 2009.
It is a decentralized digital currency that is independent of any financial institution or government.
There are several ways on how you will be able to get your hands into this digital asset and one is by purchasing it using real money, accepting it as a form of payment for the goods or services that you sell, or by creating it using your computer. Like with any other asset, investing in bitcoin is not free from any risk, but it can be quite lucrative too.
In a gist, bitcoin is a good investment, and below are some of the reasons why.
Negligible Inflation Impact
One of the main reasons why investing in bitcoin is a good idea is because inflation has almost a negligible impact on it. This can be attributed to the fact that the blockchain system that powers this digital asset is infinite, which allows cryptocurrencies like bitcoin to hold their value regardless of the changes in the market. It is also not regulated by any government, unlike any of the world currencies.
Another reason why it is a good idea to invest in bitcoin is that you may find that it is quite effortless to do so. You can safely trade bitcoin through reputable and reliable platforms that guarantee that your account is safe and your data is secure and convert your bitcoin profit to a conventional currency. In addition to this, the transactions happen instantaneously, unlike in stock trading wherein the settlement of orders can take weeks.
Cryptocurrency trading is relatively new, which makes the price of these assets highly volatile too. This can prove to be advantageous for short-term investments, creating a great opportunity for a massive gain as long as you buy and sell at the right data point. Conversely, it’s newness can also bring forth benefits for a long-term investment because of the projections for the future value of bitcoin which is based on a constantly rising trend.
Risk and Reward: Volatility
As mentioned earlier, like with any other form of investment, bitcoin doesn’t come free of any risk. But the great thing about this cryptocurrency is that the same risk, which is its volatility, can also pave the way for a great reward. As a trader, if you buy this asset while its value is relatively low, and sell when its value becomes extremely high, then you are in for a lucrative return. However, you must also take precautions because since it is volatile, its value may suddenly plummet down, causing a significant loss on your end.
In conclusion, it is worth investing in bitcoin because it is not heavily affected by inflation. Aside from this, it’s high liquidity and simple trading process makes it easy for various individuals to delve into investing in this asset. Perhaps it would be best to think of bitcoin as a new opportunity where you can potentially grow your money, such that even its volatility, which can be its greatest risk, may still pose a huge reward later on.