Some call the most popular cryptocurrency - BTC a bubble, others call it a fraud, and others a technological breakthrough! Why do so many people buy Bitcoin while there are mixed opinions around? These are the real reasons!
The most important information:
- Experienced investors are diversifying their portfolios, in addition to traditional assets, they also rely on Bitcoin
- Those just entering the market see Bitcoin as a speculative asset. They are counting on a high profit, which in turn does not always end well for them
- Cryptocurrencies maniacs look at Bitcoin from a much broader perspective: they look at the technology behind it and what values are delivered with this cryptocurrency
Bitcoin in the investor's portfolio - what role does it play?
Because there is no risk-free investment (if someone tries to mislead you, they mislead you) experienced investors never bet everything on one card. This is the so-called diversification of the investment portfolio.
As it turns out, more and more people are betting on the virtual ones in addition to traditional assets. As Bitcoin is the most popular (because it was created first), the choice becomes obvious!
For some, large fluctuations in the cryptocurrency market may be a disadvantage, while others see several advantages in them. Traders usually try to make money from increases and decreases, while long-term investors are counting on the development of BTC environment and profits in the future.
Many people see Bitcoin as a chance for freedom, as it is a virtual currency with a decentralized character. This means that it is not managed by any centralized institution. Therefore, no one (no banks or governments) is able to take away someone's Bitcoins without knowing their private key (a special password for BTC wallet).
Bitcoin (BTC) in the eyes of people just entering the market
Some people mistakenly perceive Bitcoins as a speculative asset, while the cryptocurrency can also play other roles. Of course, this is due to human nature, and the lust for profit rules many people. However, in order to get in the way of investment, it is worth having any knowledge of what you are investing in. However, many people skip this step, which consequently does not end in a happy end. Such investors usually fall victims to fraudsters and financial pyramids - which in reality have little in common with the cryptocurrency market - but blinded by the promise of huge profits the user does not know this. For this reason, these people call Bitcoin a scam, not realizing that someone simply exploited their naivety and they did not really invest in BTC.
Bitcoin s also very often referred to as a speculative bubble. The fluctuations on the BTC market can be huge - that's a fact. However, when entering the world of virtual assets, it is important to know that investing in them is risky. One day you can gain a lot and another you can lose a lot.
Technological side of Bitcoin
Other people see a technological breakthrough in the most popular cryptocurrency in addition to the speculative resource and value storage. It can be used to make transactions without the intermediation of third parties, such as banks or other financial institutions.
Bitcoin's creator Satoshi Nakamoto himself described it as a peer-to-peer currency (P2P). After the crisis in the financial markets in 2007-2008, he wanted to create an alternative asset, independent of governments. This is how Bitcoin was born - a currency in the hands of the community!