Bitcoin has gained traction over the last few years in both the crypto and the investment sectors, and lots more people are beginning to see the need to invest in it. Like every other form of investment, investing in Bitcoin has its risks- it’s a gamble most people take, hoping for the best returns.
However, in 2020, many things seem to have changed due to the pandemic. Investments this year are a bit shaky and most people aren’t quite sure of how this will turn out. But so far, Bitcoin seems to still be doing well according to several investment charts. A recent review from Fortune explains why 2020 might be the year cryptocurrency goes mainstream. Crypto is constantly building credibility and from the track record of bitcoin in previous years, there might be hope for a favorable future.
Pros of Bitcoin Investments
There are several investment options out there but these few points give most people a strong reason why they should add Bitcoin to their portfolio:
Bitcoin has established several trading platforms, exchanges, and online brokerages over the years, including the bitcoin loophole, which has made it easy for most people to trade. This high liquidity makes it a great option for those looking for short-term investment funds.
2. It is a Deflationary Currency
This simply means that the more people show interest in bitcoin, the higher the price will be to meet the current demands. It has a lower inflation risk compared to other investment options, so investors hardly ever have to worry about their digital currency losing value.
3. No Involvement of Third Parties
One of the best things about investing in bitcoin is that you don’t have to get involved with any form of authority or any third party to trade. It is not controlled or influenced by the banking system or any financial institution. This makes it free of national monetary policies and also reduces the risk of fraud or possible affected funds due to bankruptcy.
4. Minimalistic Trading
Due to the lack of involvement of any third party, the process of trading bitcoin is quite simple. You don’t need to hold a certificate or a license or have to go through a broker. All you need is a digital wallet and have access to it with a private key known only to you. The exchanges you buy and sell will be stored in this wallet. Also, transactions are instant, which is one top-tier reason lots of people would choose this option over and over again.
Cons of Bitcoin Investments
Investments are known for risks and as much as bitcoin is gaining traction, it also has its disadvantages. This includes little or no regulation, the threat of online hacking, limited use, no chargebacks or refunds, susceptible to high price volatility, and more.
The question of whether or not bitcoin is a good investment in 2020 is quite relative, as there are many factors in play. Do your research on the market and understand both the pros and cons, so you can make an informed decision and invest wisely.