Bitcoin has been big news for a long time now, but despite its popularity, many people still wonder whether it’s the right investment for them. There’s more reason than ever to trade bitcoin in 2020.
With 2020 being such an unusual year, there are lots of different considerations when making investments. So here are 5 reasons to trade Bitcoin in 2020.
Bitcoin might be a volatile currency, it fluctuates greatly over short periods of time. But over the past decade or so its performance has been virtually unrivaled. At the start of the 2010’s, one Bitcoin traded for under $0.8. At the end of the decade it was worth over $7,000.
Just because a commodity increases dramatically in value over such a period doesn’t mean it’s guaranteed to keep getting more valuable. But it’s certainly showed that sustained growth is possible.
This is one of the reasons Bitcoin is sometimes compared to gold – scarcity. There is a limited amount of Bitcoin out there in the universe That means the market can never be flooded.
The cryptocurrency has a supply limit of 21 million Bitcoins, at which point no more can be created. This is in stark contrast to traditional currency, where governments are free to print money as and when they wish. As they do, they’re devaluing your investment.
As this Bitcoin Revolution Review suggests, this allows investors to trade Bitcoin and maximize their potential for profits.
A Global Health Crisis
2020 has been an unprecedented year in the lives of most people. The global health crisis has shaken the planet, and altered the way we live.
This has had a massive impact on our economies. Governments around the world have had to step in to financially support businesses and private citizens. The bills have been huge, and governments are forced to find ways to cover their spending. Some treasuries will be forced to start printing more money.
More printing means more instability in traditional currencies. All while this is happening, Bitcoin maintains its scarcity.
It’s Being Validated by Institutions
It’s easy to look at Bitcoin as something for individuals with a more “techie” leaning, or “geeks” as you might want to call them, but this is not the case.
Major companies such as Starbucks are starting to incorporate Bitcoin into their business plans. This just adds another layer of legitimacy to it. Add to this the fact that the Toronto Stock Exchange recently launched the Bitcoin Fund, and you’ve got an investment that’s been validated across a number of important industries.
Bitcoin doesn’t need these validations to be a good investment. But in the past, it’s something that has held some people back – it’s becoming less of an issue though.
It’s a Great Store of Value
When there’s a lot of uncertainty in the markets people will often invest in gold because it has great store value. It can easily be saved, retrieved and exchanged at a later date whilst still maintaining its value.
Bitcoin has many of the same qualities as gold in many ways. For example, it has limited supply and the fact that it can’t be controlled by any one government. This leads it to be seen as having great store value, a useful asset in uncertain times.