The concept of digital currency was just an idea in the late 20th century. In 1983 the first form of electronic money was created by a cryptographer David Chaum was called ecash. After so many upgrades by developers and cryptographers gradually the idea or the system of electronic money has transformed into the latest form of digital currency. A pseudonymous person, Satoshi Nakamoto invented cryptoland in 2009. Although there is no guaranteed return that you get from Bitcoin investment, you can just check the current effective procedures that are available and then go for the investment.
Speculations and Bitcoin: What to do about the right investment patterns?
Irrespective of so much speculation at the early age of bitcoin, it started spreading among the people, and day by day its value increased. Eventually, bitcoin has become an asset for investment. After 2019 the value of bitcoin started growing so rapidly that people took it as a super investment asset. Not only that, but lots of other factors are there also, that promoted bitcoin as a convenient currency to deal with and a good investment asset.
Reasons why bitcoin is a super investment
Let’s start with an example. In 2010 a programmer in Florida named Laszlo Hanyecz ordered two pizzas with 10,000 bitcoins. At that time, the two pizzas were worth $41. It was actually the first-ever commercial transaction of bitcoin. So, the two pizzas that were worth $41 back in 2010 became worth $51 billion. Now, think if Hanyecz hold those bitcoins instead of spending them, it proved to be a highly profitable investment for him. The factors which are responsible for bitcoin to be a super investment are-
- Price hike frequently: Bitcoin’s price is volatile. It ups and down frequently. The feature is very tricky for investment but, for short-term trading, it is probably the best quality that an asset can have. This quality of bitcoin brings many investors to do short-term trading and they are earning profit quickly. You can check the current market and then start the investment process.
- High liquidity: Bitcoin holds the largest liquidity among all cryptocurrencies. It is the highest cryptocurrency per market capitalization due to its worldwide acceptance and trade through numerous crypto exchanges. So, the currency is approved as a good investment asset by various investors.
- Store of value: Bitcoin is a high-value currency. Also, investors predict that the value of bitcoin will increase more in the future. So, they are considering it as the high-value commodity of gold. Bitcoin is also called digital gold. Investors think that bitcoin has the potential to be a store of value that can back economic inflation and shut down of shock market.
Limited supply: One of the best reasons why people are mad about bitcoin investment is its limited supply. Bitcoin’s protocol has fixed the highest number of bitcoins to be in existence is 21 million. Among them, already nearly 19 million bitcoins have been created and got into circulation. So, there is only around 2 million bitcoins yet to come into circulation. That number is very less compared to its use by the people of the world, and there is a chance that by 2032, the price and availability of Bitcoin will increase significantly.
- Low inflation risk: As the demand for bitcoin is increasing there is no risk to lose its value. Although bitcoin’s price has fallen at the beginning of 2022, it is again rising. Some experts predict that bitcoin can reach $100,000 in near future. So, there is no risk of inflation, unlike fiat currency. People can invest in it and have a very good chance to gain lots of profit.
- Simplest trading process: The bitcoin trading process is simpler than stock trading or any other trading. The growing number of crypto trading platforms is providing so many tools that bitcoin trading is becoming easier for even a newbie. As an example, Immediate Edge, a crypto trading website offers a simplified trading journey. You can add your name, email ID and mobile number to start exploring the crypto ecosystem with Immediate Edge. So, more and more people are investing and trading bitcoin.
So, bitcoin has the best qualities that can attract any people. Though the volatile market needs continuous attention for trading and making a profit, it has already proved to be a super investment asset