Bitcoin might have lost its humongous value of $20,000 but it still attracts the attention of every investor with its price action.
Bitcoin has been cruising around the price of $4000 after its value hit an all-time high of $20,000 in December 2017. However, the BTC price surged to $4961 on April 2.
From the past price action of BTC, it is very evident that it is a very volatile and speculative asset. Here are few top reasons why you should consider investing money in Bitcoin in 2019.
Bitcoin could very well do what it is intended for. The current political and geographical scenarios promote adopting a currency that does not get affected by political agendas.
Limited supply, no controlling authority, and value which is controlled by supply and demand are one of the strongest selling points.
One of many weakness the currencies issued by a government is that the banks can print more money which in turn drives the value down.
Other factors that influence a nation’s currency are the political stances of the government which in turn affects the currency. The biggest example of this phenomenon in Venezuela.
Now the country is trying to revive its economy by issuing Petrocoin, a cryptocurrency.
The value of Petrocoin is derived from the natural petroleum reserves of Venezuela.
Adoption of Bitcoin
To drive the demand for BTC, there have to be incentives.
- It offers a smooth and low cost of transferring assets
- Bitcoin provides a more secure and method to transfer funds.
- It also has proven to a safe haven to keep the financial assets so that value does not degrade or inflate.
We have come a long way from nerd talk to being a household name. The current infrastructure is still not good for mass adoption but has improved over the years.
According to Jeff Sica, CEO of Circle Squared Alternative Investments.
When a large number of financial institutions will adopt bitcoin the floodgates will open.
Long way to go
Laws for Bitcoin and cryptocurrency trading have improved but for Bitcoin to replace the traditional currency, a lot has to be done.