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Is Bitcoin a Good Investment in 2021?
Is Bitcoin a Good Investment in 2021?

March 17, 2021

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The hyped-up Bitcoin market has grabbed the attention of many investors for a few years. Ever since its initial release, plenty of cryptocurrencies have been born; Bitcoin still takes the cup. Honestly, many enthusiastic investors prefer Bitcoin due to its huge returns. However, the fact that Bitcoin has its share of risks just like any type of investment, can not be ignored as well.

But, if we take expert opinions into consideration, top investment analysts like Meltem Demirors, CSO at CoinShares had expressed her trust in Bitcoin during an interview she gave to CNBC. The comment came from her after Bitcoin passed a milestone of $1 trillion market value.

“We certainly believe, you know, the best time to invest in bitcoin was yesterday — the second best time to allocate is today”

- Meltem Demirors 

According to data shared by Coin Metrics, Bitcoin’s value has risen over 90% in only 2021 so far. On February 21, the cryptocurrency touched a whopping value of $58,354.14. This sudden surge and expanding adaption of Bitcoin in multiple sectors are now convincing investors to dive into the market. 

Now, if we have to focus on the risks of the Bitcoin investment, well there might be a few. With fluctuations in Bitcoin value, there are moments when the price goes down, and just like any other investment, that might happen in the future too. However, with time, Bitcoin’s value has risen with a greater ratio compared to its downfall in some events.

A piece of news published by the NY Times on January 12, 2021, tells us about a billionaire who lost the password of his Bitcoin wallet. Yes! Stefan Thomas who lives in San Francisco forgot his password and now, he has only two-attempts left. So yeah, another risk for Bitcoin investors is that “they might forget passwords of the wallet”. 

Advantages of investing in Bitcoin

Well, to answer the initial question, we might have to understand the advantages any investor gets in return. So, let’s dive into details!

1. Immunity against inflation

Bitcoin does not have any political involvement. So, it is immune to inflation as well. The value of Bitcoin does not get affected due to any political events, or inflation in the country of the investor.

2. Easy to cash

Due to its popularity, the number of brokers providing crypto-to-cash services has increased in a few years. Therefore, the liquidity of Bitcoin has gotten easier. Moreover, you can also exchange your Bitcoin value with other assets like Gold or properties. 

3. High Returns

Bitcoin’s value has increased a lot for the last few years. If you had owned $400 worth of Bitcoins in December 2015 and sold it in 2017, you would get a return of $28,828. That’s almost 72x gain, which is much higher compared to investments in the stock market.

4. Speedy Transactions

With the elimination of hectic and traditional banking or trading practices, Bitcoin is the future. The cryptocurrency is faster to send and with time, the acceptance of Bitcoin is expanding its penetration into various sectors.

5. Better Control

Your Bitcoin value is currently your responsibility and you have 100% control over it. There are no intermediaries such as banks or Governments that will make you go through hectic processes if you want to use them.

Bitcoin in the future

With so many advantages, Bitcoin’s expansion has no limits in the future market. With the involvement of many experts such as Elon Musk, the trust in this currency is expanding as well. Even though there are a few risks, cryptocurrency has more advantages in comparison.

Now, there are a few predictable uncertainties. For example, India and Nigeria are quite speculative and conservative against cryptocurrencies as a whole. Suppose, if you are an Indian investor, a simple ban regulated by the government might put you at a great loss. So, yes, countries like the USA have adopted the culture of cryptocurrencies and that's why many other alternatives of Bitcoins are evolving. However, looking at the current scenario and increasing value of Bitcoin, more companies like the business on demand, and small investors are attempting to invest in the same with the hopes of good returns in the future. That can be a big advantage for individual investors who plan to sell when the right time comes to get good returns.

Bitcoin’s increasing popularity has given other crypto developers a vision. Now, apart from currencies such as Ethereum, more cryptocurrencies are coming into existence. Even though the competition is increasing, it is still not threatening for Bitcoin, and the expectation is, it will not be threatening at least for a decade in the future. However, every crypto-based activity has its disadvantages. For example, vulnerabilities to high scale hacking attacks or political regulations. If unfortunately, events like such occur and target Bitcoin, then it might negatively impact the value and the Bitcoin market along with it.


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