Is it profitable to buy Bitcoin

Is Bitcoin 2020 still worth buying?

Everyone is talking about cryptocurrencies. In addition to the conservative investment options, Bitcoin in particular always offers scope for investments. Some will feel reminded of the time when the virtual currency literally shot through the roof. Anyone who invested a few hundred euros in Bitcoin in 2017 could already be a millionaire today. But is trading in cryptocurrencies still profitable?

For many investors, traditional securities are like the money under the pillow. Safe, reliable and above all: well-known. The focus is on shares in companies that have been showing for years that investors can count on them. One of them is Microsoft. The tech giant from the USA is currently facing a trend wave with the new next-gen console, the Xbox Series X and the gaming streaming of the Ultimate Pass. So some people wonder whether they shouldn't buy Microsoft shares?

But in addition to the securities, many are flirting with Bitcoin or one of the other more than 2,500 cryptocurrencies that are currently on the market. However, BTC are the "oldest" and are among the safest. After all, the blockchain technology on which Bitcoin is based is not easy to manipulate. Some experts are certain that the increased public awareness of Bitcoin means that the growth potential is enormous. Galaxy Digital Capital Management assumes that this is higher than that of gold.

So far, the precious metal has been used as a reliable and proven means to compensate for financial uncertainties. Now, however, BTC, which has a market capitalization of over 200 billion US dollars, is expected to increase up to 60 times. The asset management company recently issued the latter value. That is not surprising. After all, the 11-year-old virtual currency has sailed its way through a number of storms and is now available as a recognized asset. Bitcoin is safe from any interference by states, politics or censorship.

Of course, the cryptocurrency is not the only investment that is worthwhile this year. Nevertheless, it became apparent, especially with regard to the corona pandemic, that the use of Bitcoin has skyrocketed. The background to this is that more and more institutions and investors are relying on the virtual currency as an inflation hedge. At least this is the verdict of Galaxy Digital. In this context, however, it is also clear that the future of Bitcoin is hardly predictable. Because the digital world is characterized by constant change, which at the same time creates the conditions for further development.

So there is no certainty that Bitcoin 2020 as an investment will emerge victorious from the multitude of assets. Nevertheless, the cryptocurrency offers great potential that should not go unused. In addition to the classic share, where there is speculation on the price increase and the return in the form of dividends, the virtual currency offers itself as a supplement. The focus should be less on the rapid gain in value. Much more, BTC should be understood as a long-term investment. A phase like the one Bitcoin already had in 2017 may happen again.

In the area of ‚Äč‚Äčinvestment, however, there is seldom anything certain. This applies to stocks as well as cryptocurrencies. However, the higher the prospect of profit, the greater the risk.

Published by:

ARKM central editorial office

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