It’s no surprise to most that Bitcoin is seen as a great investment opportunity by many investors, seasoned and new. The reason for this is that investment in cryptocurrencies is known to be a very profitable investment as it’s constantly increasing in value. This is a finance sector that is expanding year on year, especially with the expansion of the cryptocurrency market and the introduction of Bitcoin’s rivals like Litcoin and Ethereum.
What is Bitcoin?
Bitcoin is a relatively recent creation by an anonymous group/individual known only as “Satoshi Nakamoto”, that solved the worldwide problem of safer, more secure online payment systems. The maker of Bitcoin created a new digital currency that can be easily allocated to an individual by its blockchain technology that is attached to each coin’s code. Bitcoin also has a system in place to authenticate any transactions that take place between a buyer and seller which is a huge advantage over more traditional currency transactions.
This is also the way Bitcoin can be mined (created) as a reward for processing and authenticating any transaction. This peer to peer system allows for the users to be in charge of any transaction and also rewards the others for helping to authenticate the process meaning that users around the world can be connected to the system. This increase in activity allows Bitcoin to be fully automated and fulfill a service for the global market.
Until the last couple of years, there weren’t many Bitcoin investors that would openly come out and discussed their investments in the cryptocurrency. However this has changed now with a multitude of famous people, including world-renowned entrepreneurs and company owners happy to divulge information on their Bitcoin investments. A couple of very famous investors include Tesla who have over a $1 billion worth of Bitcoin, Shark Tank investor Kevin O’Leary also has 3% of his personal wealth in Bitcoin and another fellow Shark is Mark Cuban who has been investing more in cryptocurrencies in the last couple of years.
Who invests in Bitcoin?
As Bitcoin has seen its popularity increase so has the number of funds that have started to get involved. Take Greyscale Cryptocurrency Fund as an example, it’s designed as a specific fund to invest in cryptocurrencies which shows how investible crypto like Bitcoin has become. This fund alone has invested over $3 billion in Bitcoin with even more invested in rival Ethereum. Other major funds include Rothschild Investment Fund which is a traditional investment fund that normally only invests in safe markets such as property, gold, bonds and equities. They currently have around $1 billion worth of Bitcoin since becoming involved in the cryptocurrency in the last 3 to 5 years.
Besides, Bitcoin trading has become very simple due to arrival of automated trading bots such as crypto bank; visit https://kryptoszene.de/bitcoin-robot/crypto-bank/ for more information. Crypto bank behaves like a broker helping you trade cryptocurrencies. However, one has to be careful about the dubious providers. Before buying any bots in the market a thorough research is must.
Why does Bitcoin cost so much?
The reason this cryptocurrency is so valuable is because ultimately, the market has pushed the price up. There is a massive demand on the market for Bitcoin which has helped push the price up to over $60000 per coin. There has also been some good news for cryptocurrencies as there are now 5 legitimate exchanges which allow all investors, big or small, to get involved in trading any cryptocurrency.
Governments around the globe have also approved for the exchange platforms to allow for this service meaning that they have given a thumb of approval to this sector. Recently, Coinbase which is one of the big exchanges, went public and was valued at over $47billion which shows just how valuable the cryptocurrency market is. It also shows the potential these companies have for the future with the expected users predicted to increase to nearly 50 million. The new investors can create bitcoin account through reliable broker platforms like eToro, Binance, Coinbase, Bitcoin Trader, Plus500, etc that let you sell or buy bitcoin at a click of a button. These platforms also help you know the current value of your bitcoin account in the market.
Another reason for this is because the cryptocurrency is not based on any economical or legislative decision of any country. This makes this a much more stable digital currency than a FIAT currency which all countries use. Many investors feel far safer and more secure in investing in Bitcoin as opposed to more traditional-based investment opportunities.
Should I invest in Bitcoin?
This cryptocurrency has created many millionaires including musician 50 Cent who, at the very beginning of Bitcoin’s release, started to accept this as a payment method. He owned around 7000 coins which would make him a multimillionaire and at the price of 2021, he would have made more money from Bitcoin than his actual music career. Now, there have been more and more retailers that are willing to accept Bitcoin and other cryptocurrencies as a method of payment. Tesla has also been one of these big merchants who has openly said they are happy for customers to pay in Bitcoin making the market an even bigger space. They surely know the value of stocking up in Bitcoin as they are on course to make more profit from Bitcoin than their actual car sales this year.
For anyone that is looking to have some extra cash, investing in Bitcoin is a highly profitable, relatively low investment option. For those of us that are not professional investors, this would be an amazing opportunity to start your investment portfolio, especially since the emergence of autotrading cryptocurrency platforms. So whether you’re a seasoned investment pro or completely new to the investment space, Bitcoin is the perfect opportunity for you right now.