Is Investing in Bitcoin Still Worthwhile?
Is Investing in Bitcoin Still Worthwhile – Bitcoin has been the most popular cryptocurrency on the market for some time now, despite having now spawned over 200 different coins, all of which are on the rise.
It makes sense then, that potential investors are asking themselves whether investing in Bitcoin now is still a profitable and worthwhile venture. It’s a good question too, especially with other cryptocurrencies being on the rise and an ever-present fear of government regulation.
Nobody knows, however, how the value will develop and whether it will continue to make a profit. By now, though, everyone knows the success factors of Bitcoin; inflation-protected currency, innovative blockchain technology, widely accepted means of payment, etc.
The idea of investing saved or available fiat money in Bitcoin is certainly also related to the success stories that have gradually become public. Investors have seemingly become millionaires overnight thanks to the small sums of money previously invested in Bitcoin.
The banking world unconsciously supports the considerations. No financial product is more attractive and offers as high a return as cryptocurrencies. Wallets, on the other hand, are easy to use and do not cost account maintenance fees.
The question still remains, however; is it still worth investing in Bitcoin?
Is Investing in Bitcoin Still Worthwhile? Reasons Against It
There are a number of reasons for not investing in Bitcoin. Millionaires will no longer produce an investment and many critics claim that the golden age of Bitcoin is over. Finally, the cryptocurrency Bitcoin is no longer an initial coin offering (ICO), which can be used to earn a lot of money with small amounts.
Bitcoin is a well-established cryptocurrency, which requires the investment of large sums of money. It has grown over time and has existed for many years with all its ups and downs.
In addition, future performance is difficult to predict. Things like regulations, stock market features and many other conceivable scenarios circulating around Bitcoin influence its value. Investors need security and perspective, which the most famous of all cryptocurrencies cannot offer.
Furthermore, critics cite increasing transaction costs and congested networks as negative features. These are things that investors must definitely consider. Depending on the country, taxes may be added so it may be that after the deduction of taxes, not much remains for the individual.
Is Investing in Bitcoin Still Worthwhile? Reasons For It
Supporters of the cryptocurrency defend Bitcoin as digital gold and predict that the value will continue to rise. An entry makes sense especially if a course correction has taken place. The history of Bitcoin has shown that it went up every time thereafter and investors have been able to draw profits from the increase in value numerous times.
Since price corrections take place, again and again, investors can simply wait for the right time.
Banks will no longer be able to keep the popular cryptocurrency down because an end of the low-interest rate policy does not seem to be in sight – it makes more sense to invest your assets in Bitcoins rather than in classic investment products.
The influence of government regulations on performance is also of a temporary nature. Experts believe that the increase in the value of Bitcoin is exponential, that is, it is expected to keep increasing long into the future.
This is also supported by the fact that cryptocurrency is already widely accepted as a means of payment by many service providers around the world. In general, the opinion holds, in any case, that technical progress is unstoppable along with the potential of Bitcoin.
Currency followers often cite the development of mobile phones or smartphones as a comparison. Many years ago, no one would have thought that such devices would be indispensable in our daily lives.
A second possibility is to invest not directly in Bitcoin but in Bitcoin mining. Different providers offer attractive packages that allow entry with little money.
Bitcoin will remain the best known and probably the most popular cryptocurrency for a long time for its pioneering role and is in no danger of being knocked down by other cryptocurrencies.
As a result, if you can still make a profit so Bitcoin is a worthwhile investment. Investors can make a profit if there is a significant increase in value. If you stick to the forecasts of most economists, Bitcoin will continue to appreciate after course corrections. For investors, it’s about predicting the right time for an investment and then the right moment to sell.
It should be noted, however, that a few hundred euros are not enough to make tangible gains. There are large sums of money to pick up for large investments. The more money that is available for an investment, the more noticeable the profit after a price increase
. For investors with less money, mining is a feasible alternative. If you want to mine Bitcoins, you can start with small amounts with various providers.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.