Older market watchers seem to drift toward stocks and shares when investing their capital. Bitcoin and all other cryptocurrencies are considered high-risk when investing in them. Meaning that there is more chance to lose your investment money as well as make a profit.
Since the Presidential election of 2016, we have seen markets price future expectations and this saw Bitcoin and Dow Jones Industrial Average soar. Although, Bitcoin’s price has been dictated to by foreign (non US) capital. With political pressures in China and India investors have been pushed into a decentralised asset.. Bitcoin
Bitcoin Investment Returns
The past few years has seen Bitcoin performing strongly, bringing in steady returns. Compared to all other currencies, Bitcoin has yielded better results than all others for the past 5/6 years. For investors, these are great payouts over a 5-year period. Regardless if it is a stock, derivative, currency or bonds, Bitcoin returns are not to be sniffed at.
The price of Bitcoin is on the rise again and its arguable that the cryptocurrency has never been so secure. With the advancement of trading platforms and wallet security, maybe its time for Wall Street to take another look at BTC.
For beginners to investing, the stock market may be easier to get to grips with, because the hardest part of investing in assets in knowing when. Due to the fluctuating price of Bitcoin it may be hard to pinpoint a figure to buy in at. So stock market is normally a safer bet, due to the prices fluctuating less.
Tech Stocks Vs Bitcoin
Up until the last few weeks the major tech stocks have been performing well. Amazon, Facebook, Netflix and Google are the pinnacle of tech stocks. Amazon has been facing a bearing stock prices for the last week, with Facebook taking a huge hit from $218.22 to $176.46 in one day. The entire month of July saw Netflix on a rollercoaster. July 11 is when the stock began to tumble, starting at $418.36 and ending this month on $334.09. So it is clear to see that Bitcoin is not the only risky investment. Wether you are trading crypto or stocks, there is still the opportunity to gain and lose money.
As an investor of Bitcoin for 5-yeas you would see a 22,000% return. If that money was put in tech stocks you might get a return of 100% at the upper end. The risk associated with investing in a new, experimental and open-source Blockchain technology, it is no surprise the high long run return would ensue.
Bitcoin Vs Gold
Today, gold is sitting at $1218 and is the lowest it has been in almost 5-years. Bitcoin is trading at $8116.87, so per unit BTC is worth more. This is a major shift away from the traditional market logic. As Bitcoin’s security and global nature is becoming more appealing to investors it will be looked at as more of a hedging investment, similar to gold and silver.
Bitcoin is viewed as “digital gold” for traders and does have some similar properties to gold. They are both in limited quantities and the cheap price of gold may show a good time to buy both. As instability on the stock market increases and geopolitical tensions rise, the price of Bitcoin will rise and so will gold.
The Strength Of Bitcoin’s Network
Bitcoin’s network has never been hacked. Despite Bitcoin exchanges, Mt.Gox and Bitfinex both being hacked, the actual network that Bitcoin sits on has never been compromised. The Bitcoin network functions properly and securely, which allows the coin to se traded as a secure asset – just like a stock or bond.
The value is Bitcoin as an asset is derived from the electricity used to power a cryptographic hash function on the Bitcoin Blockchain. As long as the Bitcoin quantity does not increase, the price should hold. in theory