Is Bitcoin an alternative investment to equities? Should I buy it?
Anthony As fiat currencies worldwide take a beating due to the US-China Trade War, slowing economies in most of the developed world, there has been awakened interest amongst many investors for an alternative that is immune to the vagaries of geopolitical and economic realities. Cryptocurrencies but the question remain, Should You Invest in Bitcoin or traditional Stocks?
Investing In Cryptocurrencies
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The returns from investing in cryptocurrency Exchange vary greatly as they are literally over a thousand types of cryptocurrencies, apart from The Largest Cryptocurrencies, Bitcoin And Ethereum.
You could get started investing in any of them either by buying from someone who already has, investing in a company engaged in developing blockchain technology or firms that specialize in mining cryptocurrency.
Cryptocurrencies are generally considered a form of alternative investments.
Alternative investments are referred to as non-correlated assets because their performance is not affected by traditional asset classes like bonds and stocks.
It is general investing wisdom that not more than 20% of an investment portfolio should be constituted alternatives.
Why Should You Invest in Bitcoin
Just like Gold is the premium standard for all metals, Bitcoin is the premium standard of all cryptocurrencies.
Currently, there is a lot of growing fear in the market about another dip in the market price, similar to the December 2018 situation when the price crashed to $3,000.
On the other hand, the top 10% who own 67% of bitcoin holdings have been on a buying spree lately, rather than selling.
They may be the minority in number, but considering the fact that they own a larger volume of bitcoin assets with more risk attached, their holding position should be strongly considered as an argument in favor of buying And Selling Bitcoin.
Bitcoin was at its lowest in July 2013 when the price was $65.53 and peaked in December 2017 at $20.089.
Its price today may be roughly half that but ROI on Bitcoin is 7,371.71%.
The Bitcoin price at the time of writing is $8,321.70.
Based on the ongoing recurrent Bitcoin prices and dip in the crypto market, buying with a short-term goal of hitting $13,000 and selling is not a bad idea.
Why Is Investing in Bitcoin A Good Investment?
Generally, Cryptocurrency Investment is a good investment.
It is quite volatile and is prone to severe dips in price that have almost wiped out entire investments.
That’s why at the beginning, we advised that not more than 20% of your investment portfolio should be in alternative investments vis-à-vis cryptocurrencies.
Bitcoin Exchange is good for investors who are not risk-averse and don’t mind the patient’s investment.