Investment is one of the major aspects of a person’s financial goals. In order to grow financially, you need to invest in something lucrative. Cryptocurrencies, especially Bitcoins, have come out as a very lucrative investment option in 2021.
Since you have found my article, chances are you are a youngster, and you take a keen interest in Cryptocurrencies. I am a crypto trader myself, and I have been investing in Bitcoins for the last two years; and I can assure you that all Cryptocurrencies Bitcoins have been performing very well in 2021.
Since you are a newbie, you first need to know Cryptocurrency’s Cryptocurrencies as a good investment option. Cryptocurrencies are decentralized, basically cryptographic virtual currencies that can be traded and invested in. Since they are decentralized, they do not have legal backing.
The trade using Cryptocurrencies happens between two parties that have shown faith in cryptos with no brokers or middlemen involved. Cryptocurrencies work on blockchain technology, which works on the concept of distributed digital ledger.
Cryptocurrencies As A Good Investment: Why Should I Invest?
The most popular and valuable Cryptocurrency in the world right now is Bitcoin. Bitcoin is the best Cryptocurrency to invest in 2021. However, there are a handful of other Cryptocurrencies such as Ether, Litecoins, etc. Now when it comes to investment, you should definitely invest in Bitcoins in 2021
1. Inflation Proof
When Bitcoin was first introduced, the value of a Bitcoin was a mere $0.0008, and now at the time of writing this article, one Bitcoin is placed at $39,067.00. Financial experts have already predicted Bitcoins’ value will hit $100K by the end of 2021. Furthermore, there is no scope for Inflation in Bitcoins since the mining cap of Bitcoin is restricted to 21 million.
After 21 million, there will be no more rewards for mining Bitcoins. This makes Bitcoins a scarce digital resource, so the value of Bitcoins is only going up. This ethos of being inflation proof is a factor why you should consider Bitcoins and other Cryptocurrencies as a good investment.
2. The Bull Run in 2021
2020 was the time when most of the financial sectors faced losses due to the COVID-19 pandemic; the story with Bitcoins and other Cryptocurrencies is no different. During the pandemic, the market of Cryptocurrencies collapsed, the price of a Bitcoin fell down to $3000.
This was the time when investors panicked and started selling off their Bitcoins, thinking the time of Bitcoin was over. But investors and traders with a good grasp of the crypto market knew the potential that Cryptocurrencies held and started to buy more Cryptocurrencies.
They not only held on to their Bitcoins but started buying more Bitcoins since the price was already low. Soon others started to join. This generated a bullish trend, and the prices of Bitcoins kept soaring like anything.
Since that time, the prices of all Cryptocurrencies have been on the rise. All these factors will make anyone consider Cryptocurrencies as a good investment.
3. Weakening Value of Dollars
Since March, the US Government has constantly been announcing stimulus packages to aid the people who were the most affected during the coronavirus pandemic.
Even though it was a very good gesture by the Government, it also meant they had to print more fiat currencies and bring them into circulation to fill the void made by the US economy’s stimulus packages.
Since more fiat currencies had to be printed, inflation occurred, and the prices of goods and services in the US rose significantly. This has led people to invest and consider Cryptocurrencies as a good investment option in 2021.
4. Alternative Investment to Mitigate Risk
Cryptocurrencies serve as a very good alternative investment to mitigate risk. As you know, all investment involves an element of risk. When the risks are high in other investments, you can invest in Cryptocurrencies; when you do so, make sure you do not invest just in one Cryptocurrency.
I suggest you invest in many cryptocurrencies like Bitcoins, Ether, Litecoins, etc. Since Cryptocurrencies are decentralized, Cryptocurrencies are highly volatile. The prices of Cryptocurrencies keep swinging by large numbers in seconds, let alone every minute or hour.
Usually when a market of one cryptocurrencies crash, the market of others improve. For instance, if there is a severe market crash in Bitcoins, Ether’s price is bound to rise since more people will start buying Ether, which is the second most popular Cryptocurrency and is also one of the Cryptocurrencies as a good investment option.
Why is Bitcoin Growing so Fast as a Lucrative Investment Option?
There are several reasons why Bitcoins make Cryptocurrencies a good investment option and why it is growing so fast as an investment option.
Bitcoin is growing so fast because many countries have started accepting Bitcoins as a substitute for their respective fiat currencies.
Before a few years ago, people holding, trading, and investing in Bitcoins were often frowned upon by society because they had this preconceived notion that all the illegal trade on the Internet was made using Bitcoins. Neither did people know about blockchain technology nor the various advantages it provides.
In this digital day, however, people view Cryptocurrencies as a good investment option.
2. Coverage by the Mainstream Media
Since Cryptocurrencies and Bitcoins, in particular, are slowly being accepted as payment options, the mainstream media is widely covering Cryptocurrencies and talking about their pros and cons. This trend has led many investors to invest more in Bitcoins as they can finally see the future in the scope of Cryptocurrencies.
3. Promotion by Billionaire Entrepreneurs
Multi-billionaires like Elon Musk and Bill Gates have openly talked about and supported Bitcoins in many big events and mainly social media. Elon Musk has talked about Bitcoins on several occasions on Twitter.
There you go, now you know why you should consider Cryptocurrency as a good option. The trend of investing in Cryptocurrencies, especially Bitcoins, has never been more alive. The advantages that Cryptocurrencies as a good investment option provide in comparison to other investment options is huge.