Why should you trust Bitcoin, despite its volatility? These are six top reasons you should trust Bitcoin.
1) Historical returns for long- and medium-term investments
You would be able to invest $30 in Bitcoin in 2010 and get a total investment of $190 million today. This is because you could buy up to 10,000 bitcoins in 2010 with this amount. This example may seem unfair, however, because most people back then didn’t know much about Bitcoin.
You could buy two bitcoins for around $1,000 in 2015, however. The two bitcoins currently have a value of approximately $40,000. The current value of the two bitcoins is approximately $40,000.
2) Low correlation to conventional markets
The strategic advantages that Bitcoin offers investors is another reason to trust it. Bitcoin has had a historically weak correlation to a traditional or established market. This means that the Bitcoin markets won’t be affected by negative trends in stock markets.
3) Bitcoin is a haven
A “haven investment” is an asset that has the potential to retain its value in times of economic uncertainty and global economic turmoil. This investment is able to withstand market turmoil. Bitcoin has been able to withstand these difficulties over the years.
Bitcoin is essentially a new innovation that relies on blockchain technology. Experts agree that this technology can be used in many innovative ways by humans. This technology is likely to be more widely adopted. Bitcoin is also changing the way people see value, store it and transact.
4. Bitcoin has upside potential
Professional economic players and giant companies are joining the Bitcoin bandwagon. Individual investors still have a great opportunity to acquire this cryptocurrency. Bitcoin’s value has increased significantly over the years.
Despite its ups and downs, cryptocurrency has maintained a positive trend throughout the years. It still has the potential to rise in price. Bitcoin offers a great opportunity to make substantial profits.
5) No one can take your Bitcoins
Bitcoin is digital or virtual, so no one can take it from you. Bitcoin can’t be taken from its rightful owner by any government or other entity. Because Bitcoin and blockchain use cryptographic design, which allows users to transfer their tokens to other digital addresses. To transfer Bitcoins from one cryptocurrency wallet to the next, however, a person must have a password.
6) Increased adoption
It is no secret that Bitcoin adoption has increased worldwide. This trend suggests that Bitcoin could become mainstream and compete with fiat currency, such as the U.S. dollar.
Are you interested in investing in Bitcoin?
Bitcoin is a volatile asset but you have many reasons to trust it. To get the best out of Bitcoin, you should take your time understanding how it works and its technology.