Optimistic About Investing in Bitcoins: Bitcoin has a market value of $600 billion and the value of the coin has skyrocketed in the last few years. Now, large investors are looking for the bitcoin investment and they are considering it as a commodity. Your ride as a Bitcoin investor might not be easy but with a secure and user-friendly trading app like, as it is a secured platform used by many investors. As a result, bitcoin becomes an obsession for many and individual investors are constantly trying to get the best returns from this crypto.
Why people are investing in bitcoin?
The main reason to invest in bitcoin is to get the best returns on your investment, but there are some psychological reasons which make it an obsession. Here, you can find some examples:
- Bitcoin is associated with some jargon, like HODL and Whale, and the bitcoin conference held before the pandemic attract thousands of crypto investors. Finn Breton said that bitcoin is a part of the appeal. He is a professor of science and technology at the University of California, and he has written his book named “The Unknown History of Anarchists, Utopians and Technologists Who Created Cryptocurrency”. According to Breton, people are buying bitcoin to show their status and they are making it a part of their identity.
- People are investing in bitcoin with confidence due to the track records of this crypto. People get affected financially and physically during the pandemic, and many businesses shut down during this time. But, Bitcoin has gained a huge hike during the pandemic and people got their returns during this pandemic. So, it is natural that people try to invest in an asset that can give them a high return even in a recession.
- Apart from that, the popularity of bitcoin plays a major role in this regard because you can find news on social media about this coin every day. Lana Swartz is an assistant professor at the University of Virginia, and he said that people are investing in bitcoin because they are considering themselves celebrities, and they are trying to get the celebrity status by investing in this volatile currency.
- Normally, people do not disclose their investments on social media platforms because they always try to keep their data safe. But, in the case of bitcoin investment, people tend to share their investment details on social media platforms. Utpal Dholakia, a faculty of Rice University stated that sharing such investment details on an open platform can put your investment at risk.
- Bitcoin is highly volatile, but still, people are investing in this digital asset with confidence. It is true that investors love to deal with high risks and they feel the thrill to invest in a volatile asset. Warren Buffett, CEO of Berkshire Hathaway stated that investing in bitcoin is similar to gambling and people enjoy the thrill of gambling with this volatile digital asset. But, investors investing in stocks and bonds are switching to bitcoin investment, and they are not investing their funds to enjoy this game. So, there is a solid reason behind this confidence level. You need to keep your eyes on stocks while you invest in a stock market and you need to sell your stocks at the right time. In the case of Bitcoin, you can find such information on social media and the internet, and you do not need to waste your time by keeping your eyes on your crypto exchange. Even, the price of a coin can be changed ten times in a day and you can make a decision to sell your coins at a higher price.
- PayPal and Square have entered this crypto world and many businesses including Microsoft and Starbucks are accepting bitcoin as a payment mode. So, it has gained trust among the investors and now people do not treat it as gambling or money laundering activity. Apart from that, you can pay your taxes on the returns that you earn from your bitcoin investment and it is no longer an illegal investment option.
These are the reasons why people are investing in bitcoin confidently.