Since its arrival, the first “cryptocurrency” was created in 2009 and has never looked back. It has made its way around online communities and into nearly every major world economy. A decentralized, peer-to-peer currency relies entirely on encryption techniques to ensure that transactions are safe and secure. By eliminating third-party banks and supercomputers such as IBM’s Watson, Bitcoin has a lot of potentials to revolutionize the banking and finance industry.
However, many are skeptical about its practical use as an investment tool because of the volatile nature of bitcoin and its characteristics. When it first made its mainstream debut on the business scene, it was pretty hard to believe the existence of a digital currency that works anonymously. However, the value of bitcoin has increased sharply since its inception and is currently trading at about $47,000. Therefore, it is only possible to decide whether it is a game-changer only by analyzing a few crucial facts about it.
The Concept of Volatility
The volatility of Bitcoin is a commonly known concept. But it has helped people make great fortune against its nature, which is why it is becoming a steadier source for earning. In comparison with other investments like stocks and currencies, the volatility in Bitcoin is not that high. Over the past few years, Bitcoin’s value fluctuated a lot but only upwards. Compared with its competitors of top-performing cryptocurrencies and shares, it has the most significant development as a currency.
Past Performance of Bitcoin
However, the past performance of Bitcoin doesn’t matter much in the long run, as its value is primarily driven by the hype and expectations of future growth. In addition, regulatory uncertainty also plays a role in a currency’s value. Despite these risks, experts believe that bitcoin will become an important asset class in the future and might even outperform stocks over the long term. Looking at recent years’ stats, it is good to say that Bitcoin will undoubtedly become a crucial part of the financial market in the coming years.
What does Bitcoin Offers for Traders?
The ROI goal for every trader is usually unfulfilled due to currency inflations. For those joining the community recently, gaining a high enough ROI would be tremendous but unnecessary. The goal should be merely attainable, with conventional options like stocks and gold. On the other hand, trading Bitcoin can help achieve better resolutions for earning.
With some efforts and knowledge about the market, it is possible to achieve high ROI by trading cryptocurrencies like Bitcoin. Many people are interested in making money utilizing the platforms offered by bitcoin. They prefer this option because they believe users face less risk on cryptocurrencies than stocks. Furthermore, Bitcoin allows users to make international transactions at lower costs as a decentralized currency.
Merits of Investing Money with Bitcoin
Bitcoin has seen a significant boost in its worth since, and it is currently trading at about $47,000. This is the main reason why most traders are interested in making money utilizing the platforms offered by bitcoin. They prefer this option because they believe users face less risk on cryptocurrencies than stocks. Furthermore, Bitcoin allows users to make international transactions at lower costs as a decentralized currency.
If you are not using an efficient platform to buy or sell Bitcoin, it can be challenging to make money on your investment for many reasons. Most investors still consider Bitcoin as a risky investment vehicle. Still, they should know that it is a viable option for making money due to its growth in recent years.
The Final Verdict
The demand for bitcoins will be high in the coming years, and new investors are likely to invest their money in it. In addition, due to its growing popularity and acceptance by the government, many people are starting to think about investing in Bitcoin. Mainly anyone can make money from Bitcoin, but only if you do that on the right platform to easily purchase and sell bitcoins at the best possible rates. More importantly, you need to study what type of platforms you can buy Bitcoins at the best rate so that your investment comes out more successful than expected.