This is by far the most common question asked by modern investors; should they invest in Bitcoin or not? For over a decade, we’ve seen Bitcoin in the news, being one of the most traded cryptocurrencies in the market, and even more importantly, it has a huge amount of money counting on its performance and growth.
There have been some big winners in the market who made a great call by buying Bitcoin very early on when its popularity and usage was still to be determined. They bought at low prices, and have since sold for 10 times the amount they originally paid, as the cryptocurrency has continued to make massive gains in the market.
How did Bitcoin come about?
Since its inception in 2009, Bitcoin has been a big talking point with many prominent technology buffs already suspecting it will change the way we interact with cash. They now predict that this cryptocurrency will be taking over from the cash payments we currently use and eventually, even the online banking model that banks operate with today. People who are keen in investing in Bitcoin can buy Bitcoin through reputable broking platforms available in their respective countries. For example, the UK investors can approach uk crypto exchange 2021 to buy Bitcoin. The top cryptocurrency exchanges of UK are reviewed for users convenience and reference.
Satoshi Nakamoto, who is credited with creating Bitcoin, built Bitcoin using blockchain technology. This group or person clearly wanted to create a safe and reliable system that was decentralised and not controlled by governments who could manipulate the price with direct policies, which is what happens with current FIAT currencies around the world. The value of the currency is linked to economic performance and also government policies. This creates room for speculation to the value of the currency which is why there is so much volatility in the Forex market.
Bitcoin, on the other hand, is not linked to any market performance or government policy. This cryptocurrency is only validated by other users whose computers power the network and validate any transaction (this process is called mining). It means in the truest form this is decentralised and a product for the masses. It has also meant that many people believed in the idea and system which is why it has become so popular.
Who invests in Bitcoin?
We’ve seen that there are many world-renowned investors who have jumped onto the Bitcoin bandwagon as they have seen enough confidence in this cryptocurrency to manage the risk of investment. They have started to use Bitcoin as part of their diversification portfolio as it gives them leverage on other assets and investments they currently have. In fairness to them, this has probably been one of their better performing investments with the value of Bitcoin doubling in a 2 year period.
Greyscale Investment Fund, one of the world’s biggest investment funds in the world, has actually created a specific fund for cryptocurrency after identifying the potential in this sector. Their Grayscale Bitcoin Trust Fund has around $30 billion dollars of investment capital which is a considerably large amount and tells us that it’s not just a speculative investment but a long term initiative. Another famous investor is Kevin O’Leary from the world-famous show Shark Tank who has openly said that he invests in Bitcoin and holds around 3% of his personal wealth in the cryptocurrency. He also strongly advocates cryptocurrency, especially Bitcoin, and in his O’Leary Investment Fund has continued to promote and diversify its portfolio to include Bitcoin.
Major investors in cryptocurrency also include Elon Musk, Mark Cuban (another Shark Tank investor) and Rothschild Investment Fund. This proves to the market that there is a lot more to be had in this sector of the financial industry.
Why is Bitcoin performing so well?
The cryptocurrency market has been doing very well in general, and this is thanks to some big news in recent years where cryptocurrency trading platforms have been approved by the financial authorities in US, Canada and Australia to name a few countries. This provides the traders a safe environment to invest in Bitcoin causing a surge in buyers. Some of the most popular include Coindesk, eToro, Robinhood and Coinbase. The latter also went public this year valuing the company over $47 billion on the NASDAQ exchange. These trading platforms have given beginners and professionals easy access to the market to trade in cryptocurrency which has also bolstered its popularity. Bitcoin Profit app is the latest in a long line of trading bots on the market, and it outstands from the others. Visit Bitcoin profit site for more information. With easy access and simple user-friendly interfaces, these apps allow everyone to try and make some additional income.
Another reason attributed to this has been the involvement of mutual funds and large investment institutions that have now started getting involved in Bitcoin and other cryptocurrencies. However, with these new players an issue has arisen. This is mainly concerning the ethical and sustainability of the mining of Bitcoin. It is a well known fact that many of the current Bitcoins in circulation come from countries that do not follow the standard to meet the sustainability and ethical standard set by the mutual funds and investment institutions which is why now many of these companies will look to only purchase Bitcoin that only comply with these standards. It now means that Bitcoin will sustain its asking price and for those that can meet the criteria, an even bigger asking price might follow them.
Bitcoin and other cryptocurrencies are undoubtedly worth investing in. They provide a great alternative for investors when deciding to diversify their investment portfolio. With a strong performance over the last five years and a great product to hedge the portfolios of major investors, it is arguably the very best investment you can make right now. Cryptocurrencies are here to stay and with that message loud and clear, it’s time for us all to look at this option seriously. It has been a great pick for many people so why not the rest of us?