Almost everyone, if not all, wants to make big money. I daresay, nobody is shy of making a lot of money should such a chance become available. It becomes even more exciting to know that there exists a leeway through which someone can make great wealth and fortunes just by studying cryptocurrency performance charts and monitoring socio-political trends affecting them. This is a stark contrast from the yesteryears where people would study hard, rise against odds to shape a career but still end up with a miserable life where income doesn’t come even close to being enough for bills. Maybe this could be the reason why so many are rushing to make cool dollars without a sweat. Maybe or maybe not. Let’s see what it is that makes bitcoin investment a buzz word in town today
A sneak peek about bitcoin and bitcoin investing
You have undoubtedly heard about cryptocurrency and how it is showing tell tale signs of being the trend in the. Maybe saying the future even blurs the reality as already, many retailers are accepting bitcoin as a means of payment while countries such as El Salvador and the Central African Republic have it as a legal tender. So it isn’t the future anymore. future of money. The significant growth of digital currencies in the recent past has piqued the interest of many if not all investors. The fastest and most common cryptocurrency in the market today is Bitcoin.
The pioneer cryptocurrency, Bitcoin is slowly but steadily arising as an alternative trading and investing tool to traditional methods. Ask any young investor or professional and they will tell you cryptocurrency is the future. The obvious question therefore, becomes why many investors have shifted their focus to bitcoin.
Why are more People Investing in Bitcoin?
The main reason why Bitcoin investing is becoming popular by the day is its market performance since its launch in 2009. Bitcoin has revolutionized the monetary sector by empowering decentralized finance. Similarly, it has proved a critical tool in low income areas.
Increasing Rate of Global Adoption of bitcoin
Investors are rushing to claim a piece of the Bitcoin market due to its established and ever growing global adoption. The number of users in 2022 alone has increased tremendously with price predictions increasing gradually. Some money market experts have insinuated that Bitcoin is getting adopted at a faster rate than the internet was when it emerged.
In 2021 when El Salvador acknowledged Bitcoin as a legal tender, investors viewed this as proof of its potential. Thus, more people concluded that the risks involved in Bitcoin investment are outweighed by the likely benefits. Further the move has ensured the rise of Bitcoin as both a trading asset and a store of value.
Influence from Prominent Individuals and corporations
Similarly, prominent individuals like Elon musk have acknowledged the potential of crypto currency. This has offered proof that Bitcoin and the likes are here to stay and could be a potential mine for wealth and asset acquisition. Furthermore, established entities like Facebook and Microsoft have shown increasing interests in cryptocurrency. Leading to an increase in its popularity among young investors.
Bitcoin is in its Budding Stages with a projected promising future
Moreover, investors have been attracted to Bitcoin because it is still in its developing stages. As is evidence from recent and past market trends, the cryptocurrency market is very volatile. Bitcoin is characterized by volatile changes and unpredictable prices that can be viewed as opportunities or disadvantages depending on one’s perspective. Some investors have identified these changes as potential areas for significant gains.
Bitcoin is Sporadic in its progression
In addition, the law of supply and demand attributes higher value to commodities that are in low supply. This has been the case with Bitcoin, whose supply is currently estimated to be twenty one million. The fact that there is no predictable rate at which more can be generated and created in the near future further stamps its value. It makes it highly improbable that Bitcoin price could crash in future due to excess Supply.
Transparency in Bitcoin handling
The rush for Bitcoin investment can also be attributed to its transparency and to being open-source. Unlike traditional investments, one does not require authentic third parties thanks to its global network distribution. This network includes thousands of computers and users across the world. It implies that everyone can be part of the Bitcoin brain trust through tasks such as the creation of several software clients.
Bitcoin Resistance to Inflation
The COVID 19 pandemic led to a significant rise in the level of inflation in many countries. Hence, many investors opted for Bitcoin investment instead of government controlled currencies. Bitcoin investment is characterized by a limitless block chain system that protects its value overtime. This attribute has served as an anchoring point for Bitcoin investment as many regard it as an excellent and safe hedge to inflation.
However, some investment experts have offered several reasons why it is not wise to invest in Bitcoin.