Is Bitcoin a Viable Investment in 2021?

Is Bitcoin a Viable Investment in 2021?

Bitcoin Investment
May 5, 2021 by J.D. Smith
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The past year 2020 has put us into unexpected crises – a global pandemic, countrywide lockdowns, travel restrictions, market uncertainty, and more. Did these strategies affect the sprouting bitcoin currency? Let us study all the details in our guide to find out whether Bitcoin a Viable Investment in 2021 or not? Like other investments in
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The past year 2020 has put us into unexpected crises – a global pandemic, countrywide lockdowns, travel restrictions, market uncertainty, and more. Did these strategies affect the sprouting bitcoin currency? Let us study all the details in our guide to find out whether Bitcoin a Viable Investment in 2021 or not?

Like other investments in stocks and shares, bitcoin brings some common risks, including price drop precipitously, online hacking can interfere with bitcoin stashes, and more. Seemingly this 1st digital asset turns out to be a possible replacement for the physical monetary system due to its increasing demand and value. Let us study a few pros and cons to help you decide your investment plan. Starting with advantages of bitcoin investments:

The global pandemic

Bitcoin turned as a hedge against the shaky economic crises caused due to imposed lockdown in various countries worldwide. With more people realizing its worth, the global adoption of bitcoin is accelerating. In the COVID times, institutional investors like Tesla, Square Corp, and Microstrategy resorted their cash reverses into bitcoin currency, stating its value worth against the current inflation.

New opportunities

Bitcoin and cryptocurrencies are a new thing in town – especially inspiring tech enthusiasts with its increasing demand. Trading coins are now becoming a mainstream on daily basis bringing unpredictable swings in volatility and price, creating opportunities or massive profits.

Lower inflation risks

Bitcoin is immune to inflation as we learn from 2020, which explains a significant hype in the currency since it is not regulated by the government like most of the world currencies. The uprising artificial intelligence – blockchain system boosts the technology advance with its infinity. This means minimal chances for your cryptos to lose their value.

Liquidity

Being established worldwide, the bitcoin currency is found to be the most liquid investment asset. You could trade bitcoins on supporting platforms for cash, gold, and other physical assets with a reliably lower fee. This liquidity associated with bitcoin makes it an ideal short-term profit investment. Also, studying current market demands, digital currencies can prove to be a beneficial long-term investment.

Minimalistic trading

There are certain requirements to be fulfilled before you start with stock trading, such as you need to be a license or certificate holder. To trade a company’s share you need to go through a broker, whereas bitcoin has made trading minimalistic – where you can simply buy, sell, and trade bitcoins and place them in your wallet. Stock trading orders take days and weeks to settle, whereas bitcoin transactions are instant.

Did the pros make you go wow? But wait to check out these disadvantages for bitcoin investments before you take off your final decision. To find no surprises later, you should be aware of some serious risks that are surrounding bitcoin investments:

Wallets can be lost

The risks of losing bitcoins rise when your virus corrupts your wallet file or hard drive crashes. This losing of the wallet file has no way to recovery, making you a bankrupt investor from a millionaire within seconds.

Volatility

The bitcoin prices are always moving up and down! This unpredictable market is always changing if you bought a bitcoin on December 17, 2017, priced at $20,000. Weeks later, the game would change, and it could drop more than $7,051. Similarly, other studies show a significant increase in prices, so to avoid losses, it is necessary to keep a close eye on the market.

Little or no regulation

We saw that the bitcoin market operates with no major regulations and no clear stance from the government on it means you can face malpractice or fraud easily. Although, reliable companies and platforms are available in the current market!

Is Bitcoin worth buying?

The current hyped-up market for bitcoin somehow deals with the price volatility, but regulation is a bigger concern. Since bitcoin exists outside government regulation, it brings more risk in dealing with it compared to those government currencies and other assets.

However, the major benefit it brings is it isn’t hard to buy, sell, and trade bitcoins. If you are thinking to leap into this trend, then count this as a high-risk, high-reward portfolio – you can reap big gains in the short-term, likewise suffer from heavy value drops.