People like to invest in precious metals like gold, silver, platinum to increase their wealth. However, investors are always looking for novel options to invest their hard-earned money. Cryptocurrencies are a rage today, and many consider them as a lucrative investment avenue.
When you think of cryptocurrencies, the first thing that comes to mind is Bitcoins. Here are the top benefits of buying Bitcoin in 2021.
Bitcoin Acceptance Is Increasing at a Rapid Pace.
Bitcoin is the number one cryptocurrency, and its market cap has increased from $700 billion to $1 trillion in just three months. If you are interested in crypto assets, you need to look for a safe investment. Due to the popularity of decentralized finance, you will notice several blockchain projects newly launched in the market.
The number of wallets supporting Bitcoins has increased significantly in the last few months. You need crypto wallets to store Bitcoins. A year back, there were around 47 million supporting Bitcoins which has risen to 71 million last year. More compatible crypto wallets mean you have more options to store after buying Bitcoin.
According to experts, Bitcoin acceptance has increased at a rapid pace. In January 2021, around 1 million new investors bought Bitcoins for the first time. If this trend continues, you will see Bitcoin price rise significantly, and your investment could double in a year or more.
Bitcoin Investment For the Macroclimate.
The fiscal and monetary response can be seen immediately to global events. Bitcoin was launched in response to the global financial crisis of 2009. Developers launched Bitcoin in the wild, and it was ignored by most people and appreciated by few idealists.
A decade later, we again see signs of the financial crisis, and interest rates are dropped worldwide. Due to the increased acceptance of decentralized finance, you can see companies and investors attracted to Bitcoin’s value proposition as it sits in a macro environment unaffected by the global crisis.
Many investors think Bitcoin will play the same role as gold metal did in the 1970s during the Great Monetary Inflation. These are a few reasons why macro investors have invested 1 to 2% of their assets in Bitcoins.
Wall Street Makes Way for Bitcoin.
Until now, cryptocurrencies were ignored by most investors as they were not part of the financial mainstream. However, things have changed for the better, and Bitcoin and other cryptocurrencies are on the way towards the financial mainstream.
The value of Bitcoin surged after it received a legitimacy boost from MasterCard and Tesla. These financial players have announced they will accept digital currencies though many regulators doubt these volatile currencies.
Bitcoin Has Survived Price Crash and Reached an All-Time High
Bitcoin registered the biggest crash in prices after U.S. Financial Crimes Enforcement Network shut down crypto exchange Bitfloor. The agency announced bitcoin exchanges are required to register as “money transmitters.” These legal bindings and actions led to a sharp fall in the price of Bitcoin, and the prices collapsed over 73% in 24 hours.
Before the 2013 crash, the peak value of Bitcoin was around $266. Bitcoin was able to rise quickly from the crash, and it reached the symbolic mark of $1000 by late 2013. By December 2017, Bitcoin was able to surpass its all-time highs, and the price of Bitcoin reached $20,000 per coin. As per the Bloomberg report, Bitcoin price is expected to a record high of $400,000 level in 2021.
Today, there is an increasing number of investors who consider cryptocurrencies better investment vehicles than precious gold. The price of precious metals has been showing high volatility in recent years, giving jitters to investors. With increased interest in Bitcoin, you can only expect Bitcoin prices to be steady and rise slowly.