Bitcoin is the year’s best-performing asset class in the world so far. Say what you want about volatility, weird markets, lack of regulation or any of the other objections usually wielded by crypto-skeptics but the fact remains that, during this year, if you were out to make some money, there’s been a no better option.
Interest in digital assets, Bitcoin, in particular, is one of the pursuits that are pushing the financial world forward. Cryptocurrencies can be an alternative to the economic chaos that fiat currencies can be, especially during times of crisis. They also offer the possibility to be more inclusive and bring to the table some of the millions of people in the world who remained unbanked and out of the traditional financial system.
The problem is that the price of digital coins is highly volatile, which is not a problem when all the numbers are green, but that scares people off when the numbers are red, and the market is sinking like a led balloon. So a fair question would be, is Bitcoin (or cryptocurrencies) still a worthy investment?
The answer is decidedly affirmative. There are many reasons for that. For a start, Bitcoin is very likely to rise in value. We’re not talking about the dramatic increase we’ve seen over the last few weeks but in the long-term. Even during the 2018 bear market, it remains evident that Bitcoin’s price is always going to go up significantly, given enough time.
There’s no way of pinning down a date for when it will reach, say, USD 100k (if it goes that high), but chances are it will get there. That’s why Bitcoin is an excellent choice for those investors who are all about the fundamentals, discipline, and patience; but not always the thing for those who want to get rich quickly.
The media has had a lot to do with all the hype surrounding digital coins. The hype creates false expectations, and it can even affect the market’s performance. Fortunately, the media never pays a lot of attention for long. It’s usually only when things are either great or terrible. Then the dust sets down, and things go back to normal. That’s when you can see how the market really is behaving.
Accessibility to Bitcoin has improved dramatically. In the beginning, it was incredibly challenging to get ahold of some. You had to be part of a selected club of specialized technology aficionados, so to speak. These days, you can use your credit or debit cards, and even Paypal.
Mining bitcoins, on the other hand, is now a lot more complicated. The Bitcoin’s protocol increases the difficulty in the collision calculation that allows creating new blocks for the chain by design. But on top of that, a lot more people are mining BTC now, so it’s become a very competitive field. It takes a lot of expertise and high initial investment. And if the Bitcoin market isn’t doing well, mining won’t be profitable, unless you’re in China, like most miners are.
However, if you look at the big picture, Bitcoin does have the edge over the traditional legal tender currencies of the world. It’nd s about versatility and security. Completing international transfers with BTC is quick, cheap, reliable. And if you keep your digital wealth in a safe offline digital wallet, there’s just no way in which your tokens could be stolen, unlike your analog wallet which you could forget anywhere.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.