Are you amongst those still contemplating whether or not to invest in Bitcoin? Well, we understand your concerns. Since this currency is new in the market, if you look at its credentials as a debutant, they are convincing enough to say that Bitcoin is the future, and cryptocurrency will rule the market. Take a look at why investing in bitcoin can be a good choice for you.
In fact, many investors consider Bitcoin to be equivalent to gold, which holds a promising proposition in the future. But what makes it so popular? Why will Bitcoin last forever in the market? Let’s try to answer your queries in this informative blog.
Does Bitcoin Have Future Growth Scope?
- Regulation on cryptocurrency- Let’s address the key cause that has earned Bitcoin a bad name. It is the lack of regulation. We know that Bitcoin exchanges are not governed or controlled, and these run like unregulated makers. And when we want this currency to be a part of the mainstream economy, it has to fit within the parameters prescribed by all the ruling authorities. Hence, regulation is a must. With Bitcoin regulations, everyone who uses this mode of transaction will be assured that they have a reporting authority, and they will not lose any amount. Countries like the US have created a regulatory framework that will make Bitcoin a regulated currency similar to fiat currencies. The exchange authorities have to issue 1099-B tax forms with cost basis information to investors in the US.
- The risk with returns- We agree that Bitcoin investments are risk-prone. Even the slightest shift in the market price impacts the working of Bitcoin and its valuation in the market. For example, the way between Russia and Ukraine also impacted its price. The day the war broke out between the two nations, i.e. on February 24th, 2022, the price of Bitcoin plummeted to $35,000 but again, by Monday, it had escalated to $39,000. Hence, the risk of investment also comes with the return. The same trend exists in the stock market, but the frequency of volatility is lesser than that of the crypto market, so it is important to check how the currencies are performing before investing in it.
- Growing use cases of Bitcoin– There has been a constant growth in the use of Bitcoin. It is used for making payments, hotel bookings, and even buying a cup of coffee. Bitcoin was first introduced, but there was no such trend in the market. Some keen enthusiast activity invested in Bitcoin initially, but later it was rejected. If the relevant research reports are evaluated, it can be seen that many countries had to reject accepting Bitcoins due to certain unavoidable factors. But what remains the reality is that Bitcoin is a popular choice, and its horizon of use cases is growing. Platforms like Twitch, AT&T (T), ProtonMail, Dish Network (DISH), Wikipedia, and Namecheap accept Bitcoin directly or indirectly via third-party. So, if you have not yet started investing in Bitcoin, this is the right time to do so.
Should You Invest In Bitcoins?
If you have to spend $39,000 on buying 1 Bitcoin, you would be thinking, why so much money and is it worth investing this amount. What if the currency vanishes with time. But we have an answer for you. Bitcoin is here to stay. We still have to go a long way before stating that Bitcoin will become a global resource like gold, but looking at the present status, it is here to stay and draw in more people to be a part of the cryptocurrency exchange world.
Countries like El Salvador have given legal status to Bitcoin and its application, so we can say that if there are counties outrightly rejecting Bitcoin, others are embracing it and trying to be a part of modern growth. Bitcoin has taken center stage in the global geopolitical environment and will continue to create a strong impact in the future.
So, if you are convinced with Bitcoin’s growth, and want to have it as a key part of your investment portfolio, then it can be stated there are high chances of future growth scope if you consider investing in it.
Masab Farooque is a Tech Geek, Writer, and Founder at The Panther Tech. He is also a lead game developer at 10StaticStudios.
When he is not writing, he is mostly playing video games