Bitcoin - 5 Reasons Why
Interest in Bitcoin is at an all-time high right now, as well as the price. A quick search of Bitcoin on Twitter and you will be overwhelmed with arguments for and against the cryptocurrency. The fact is, however, people who had no previous experience investing are starting to put their money into Bitcoin... Why? Apart from Elon telling you to, here are our 5 reasons why you may want to make the step into the crypto market.
- Everyone is doing it - Now, that sounds like a weak argument. But the fact is the number of Bitcoins that will ever be made available does have a number. It isn't an unlimited source, so the more people buy, the higher the price will likely go. Apps like CashApp and PayPal have started allowing users to buy, hold and sell Bitcoin (among other Cryptos) in their wallets. It is also planned that PayPal’s 26 million merchants will start accepting Bitcoin as a form of payment. When we look at society, people from all walks of life are now getting involved. Zahara's CEO is a bitcoin holder - so are his sons and so is his dad. That is perhaps one of the most appealing aspects of it - you can enter with almost any amount and still turn a profit.
- The Wolf of Crypto Street - You know something is serious when Wall Street starts getting involved. They aren't just dipping their toes in either, investment firm MicroStrategy have bought over $1 billion in Bitcoin. The same company also announced that it will be looking to invest excess cashflow into Bitcoin. Other investment firms will watch this move with eager eyes - Morgan Stanley and JP Morgan Chase have hinted at the possibility of investing heavily in Bitcoin too.
- Resistance - Bitcoin has crashed many times and been declared dead, however it has always bounced back and surged past its previous all-time high. Let's take a brief look - in mid 2011 the price was $30 dollars but collapsed to $2. April 2013, the price hit $260 but collapsed by 50%, only to recover to over $1000 for the first time before the end of 2013. Then, arguably the move that put Bitcoin on the map - start of 2017 Bitcoin hit $1000, by the end of the year it had hit $20,000. This was probably the point Bitcoin came into the mainstream.
- Digital Gold? - Ok, so gold will always be held in higher regard because people find comfort in the fact that gold is physical, despite majority of investments never actually possessing the physical gold they have just bought. People are likely becoming more comfortable with the idea of a cryptocurrency as more and more of what we do in our lives become digitised. A quick look at Twitter and you will see which, out of Bitcoin and Gold, are getting more attention.
- It is such a rush - hear me out on this one. Trading Bitcoin and other cryptocurrencies is probably one of the most interesting and fun activities I have ever taken part in. You spend so much more time than you realise watching a line make its way along a chart, watching your profit (hopefully) go up. The volatility of Bitcoin means that you don't necessarily have to hold it for that long to make a profit or loss. You can open and close trades on a weekly basis and still turn decent numbers if you want, this makes it much faster pace than other investments. For people with short attention spans (like me) that is great!
The hype around Bitcoin and cryptocurrencies in general has been monumental recently. Many analysts are predicting that 1 Bitcoin will surpass $100k in 2021. We will be playing a game of who has the strongest hands until then.
What are your thoughts on Cryptocurrency? We would love to hear from you! Head to our Twitter and let us know.
I have to say that the above is not investment advice. You shouldn't invest any money you cannot afford to lose. Do as much research as you can before entering the market.