Six reasons to trust Bitcoin
Wondering whether or not you should trust Bitcoin? Here are six of the top reasons to trust this virtual currency.
A serial entrepreneur and wealth magnate, Jack Ma, invested a significant amount of his wealth in Bitcoin because he believes that this cryptocurrency can shape the financial industry’s future.
Jack Ma is among the many investors putting a lot of capital into projects based on this cryptocurrency, hoping to make good profits. Since Satoshi Nakamoto introduced Bitcoin in 2008, the cryptocurrency has gained increasing popularity and value over the years.
Bitcoin is mysterious to some people and exciting to others. Some people fear Bitcoin due to its volatility. However, this virtual currency is difficult for most investors to ignore. That’s because it has confused some players in the housing market, stock market, precious metals, and other traditional investment sectors.
Nevertheless, this cryptocurrency has been through ups and downs. For instance, crypto world scandals, scams, and frauds have affected Bitcoin’s adoption. Some people are also worried about increased heat from governments and other regulators.
More people are purchasing and selling this virtual currency using sophisticated automated trading robot Bitcoin evolution even with these challenges. With this software, a person can passively trade this cryptocurrency. That’s because adjusting its settings allows it to decide when to purchase and sell Bitcoin based on specific parameters.
But why should you trust Bitcoin despite its high volatility? Here are six of the top reasons to trust this digital currency.
1) Historical returns for long and medium-term investments
If you invested $30 in Bitcoin back in 2010, you would have an investment worth over $190 million today. That’s because this amount could purchase up to 10,000 bitcoins back in 2010. But this example could seem unfair because most people didn’t know about Bitcoin back then.
However, you could purchase two bitcoins with around $1,000 back in 2015. Currently, the two bitcoins are worth approximately $40,000. Thus, Bitcoin’s value continues to increase, and it’s never too late to invest in this virtual currency.
2) Low correlation with conventional markets
Another reason to trust Bitcoin is the strategic advantage it provides for investors. Essentially, Bitcoin has historically maintained a weak correlation with a conventional or established market. Practically, this means that negative trends in the stock market won’t affect the Bitcoin markets.
3) Bitcoin is a haven
A ‘haven investment’ is an asset that can retain value during challenging global economic distress and uncertainties. This means that this investment can withstand market turbulence. And Bitcoin has proven its ability to withstand such difficulties over the years.
Essentially, Bitcoin presents an innovation whose basis is blockchain technology. Experts have noted that humans can use this technology in different innovative ways. Thus, this technology has a chance for greater adoption. Additionally, Bitcoin is already changing how people perceive value, store it, and even transact.
4) Bitcoin has an upside potential
Giant companies and professional economic players are jumping onto the Bitcoin wagon. However, this is still a good time for individual investors to get this cryptocurrency. Bitcoin’s price has risen significantly over the years.
Although the cryptocurrency has experienced ups and downs, it has maintained an upward trend over the years. And it still has the potential for a further price increase. Consequently, Bitcoin presents an opportunity for making considerable profits.
5) Nobody can confiscate your Bitcoins
As Bitcoin is virtual or digital, nobody can take it away from you. No government or entity can confiscate Bitcoin from the rightful owner. That’s because Bitcoin and blockchain use the cryptographic design that allows users to move their tokens from their digital addresses to others. However, a person needs a password to transfer Bitcoins from one crypto wallet to another.
6) Increasing adoption
It’s no secret that Bitcoin adoption is increasing globally. And this trend indicates that Bitcoin could potentially go mainstream and compete with fiat money, like the U.S dollar.
Could investing in Bitcoin be right for you?
Despite being a volatile asset, Bitcoin gives you many reasons to trust it. Nevertheless, take your time to understand how it works and its technology to get the most from Bitcoin.