Are Bitcoin Profits Promising? Here Is What You Need To Know
Investing in cryptocurrency is beneficial on the one hand. However, the fact should not be overlooked that this particular form of cryptocurrency has risk factors involved as well. This makes this investment opportunity refraining for some investors while promising for others. But not every currency is as promising as Bitcoin. The bitcoin system in cryptocurrency is the top cryptocurrency at this time. To make it clear and comprehensive, here are some facts about Bitcoin and its growth.
Bitcoin: 2017-2021
Bitcoin was launched in 2009, but initially this digital currency hadn’t received much importance. For almost 8 years, Bitcoin was under the shadow. But, in 2017, this cryptocurrency received its first price shoot-up. In 2017, the price of bitcoin rallied from $777.76 to $19,497.40. However, it proved to be favorable for just one year. For the next 3 years, the gains were lost. Many investors lose their interest in Bitcoin. But 2020 proves to be the best year for the trading history of Bitcoin.
This cryptocurrency was traded at $5000. During the year 2020, the value of Bitcoin rose by 300 per cent. At the end of the year, it was traded to close to $30,000. With this growth and hike in the trading price of Bitcoin, many investors saw this cryptocurrency as digital gold. The interest of many investors was back, and it was aspired by every investor. At the end of February 2021, this reaches the high price of $55,000. However, recently it saw a slight downward slope, and currently, it is trading at $42,000. This trading price is stabilized for now.
These data show that the Bitcoin market was not a promising market until the year 2020. But the high price rise proves that this market has become promising. But many investors still feel that these gains are not encouraging. To prove it wrong, here are the points that support that Bitcoin gains are promising.
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Why Bitcoin Gains seems to be Promising?
- Price uprise in the financial mindset
2021 became a profitable year for the bitcoin investors. The financial mindset that of many investors is changing. Instead of putting the surplus money into banks, investors are opting for bitcoin as a better overall investment option. This financial mindset has made this cryptocurrency beneficial and known to every person. This makes it a promising alternative to traditional investments.
- Changes in the flexibility of bitcoin regulations
One of the main reasons that contribute to this thing is that the regulations for bitcoin are relaxing in various countries. We know that bitcoin does not have any kind of regulations. But the status of the bitcoin currency is not acknowledged in any country except one. This, as a result, has made the gains promising for the investors as they can use it as a medium of exchange.
- Ease of Accessibility and liquidity
Bitcoin offers liquidity and great accessibility at a single time. The whole transaction can be done in bitcoin with a few clicks only. You can transfer the coins to other users with a few clicks, even in another country. Therefore, bitcoin provides good accessibility and liquidity to investors.
- Transparency and User Anonymity
In the bitcoin system, the identity of the users is recognized with numerical codes rather than names. This makes the identity of the users anonymous, though not completely. Therefore, tracking transactions by the general public is not possible in cryptos.
The transactions on this system are completely viewable. This makes the system transparent for the investors. But the transactions can be only viewed by the owner of the wallet. Due to of the uprise of the price valuation of Bitcoin, the cryptocurrency seems to be quite promising.
Conclusion
Bitcoin isn’t brand-new money. Although it has been on the market for some time, it has recently grown in popularity. Bitcoin is the only cryptocurrency considered digital gold among all cryptocurrencies on the market. It also faces some problems as Bitcoin challenges in developing economies also arise with it gaining its popularity. Nevertheless, this currency has much interest from investors.
