You may be wondering whether investment in Bitcoins is indeed a wise move. While Bitcoins have become the buzzword today there are critics who feel that crypto investments are a sham. So, is the Bitcoin a really good investment according to critics?
Cryptocurrencies have witnessed a lot of ups and downs in the recent few months but things have started to look up since April. Governments all across the globe are reacting to the Covid outbreak and there seems to be no goal in sight. However, the atmosphere seems to be ripe for investment in digital assets because they can be used as a currency and as a store of value. Perhaps the biggest reason, according to critics, for accepting Bitcoins is the volatility it offers. With increased volatility, there are more speculators who are bringing in higher liquidity.
That Bitcoin can be regarded as a store of value has often been criticized by critics because of the volatile nature of digital assets like the Bitcoin. But, those who want to hedge inflation risks with supply-constrained assets that may be traded against fiat currencies, accepting bitcoins as digital gold is useful. Bitcoins can in fact be held to be far more useful than gold due to its increased utility. Moreover, Bitcoins are easy to get, transfer, and even store, compared to gold. So, it makes more sense to convert assets into Bitcoins rather than gold or any other unwieldy metal. This added utility that the Bitcoin offers should actually translate into overall economic value.
The truth is that digital assets can be rewarding; even a petty 2%-5% may have a great impact on performance. The outcome could be life-changing for you while the downside is similar to a bad day in the stock market. As a medium of exchange the Bitcoin is valuable. It is also important as a store of value, even though this may seem hard to believe for people who trust the traditional banking system. While critics may not think of Bitcoins as a currency the truth is that not all have access to banking products. Moreover, some critics feel that the transaction timings and transaction fees are far too long. But, at the same time, it is hard to overlook the fact that Bitcoins and other crypto coins offer far more utility as a medium of exchange than the fiat currencies.
Unlike fiat currencies that are under government regulations, Bitcoins are immune to inflations. Since the blockchain is infinite you never have to worry about your crypto assets losing their values. Critics have also realized that Bitcoin trading and crypto trading being in a nascent stage, every day there are new coins becoming mainstream and this newness is causing unpredictable price swings resulting in opportunities for huge gains. The bitcoin price is also on the rise due to arrival of automated trading bots. Read this bitcoin rejoin review to know how you can make use of them to earn daily profits.
Stock trading means you need a license or certificate to trade and you have to engage a broker to buy any company’s shares. But, Bitcoin trading is completely minimalistic and you simply buy and sell Bitcoins through exchanges. Transactions are instantaneous unlike stock trade orders that take weeks to go through.
The USD had been backed by a stable US government and this government was committed to ensuring that the currency remained stable. It could be used by anyone across the glove for conducting trade. But, with time, there have been fiscal deficits and flawed monetary policies. With regulations like the Patriot Act and Bank Secrecy Act, now institutions and people find it hard to conduct business using the existing banking system. Besides, KYC and AML rules are becoming increasingly oppressive for people, forcing them to consider alternatives like cryptocurrencies.