Finance

Where to Invest – Bitcoin or Stocks?

Bitcoin, a promising digital currency has actually achieved a milestone as it nears its eighth birthday and persists a bullish rally. The bitcoin price surge has been fueled with geopolitical pressures and even the financial environment in India, Venezuela, and China pushing investors towards autonomous digital options.

Is it time to invest in bitcoins?

In the last several years, Bitcoin has been performing strongly and offering greater yields thus attracting more and more investors. The payouts were outstanding in comparison to stocks, bonds, shares, derivatives or currency. As bitcoin prices are soaring, computational network getting stronger and secure, as well as multiple friendly wallet services or apps getting introduced, makes investors think – do you seriously need to consider investing in bitcoin?

How about investing in stocks rather than bitcoin?

The stocks of major technology companies called FANG [Facebook, Amazon, Netflix & Google] have been performing well. The 5-year returns of –

  • Amazon – 342.02%
  • Netflix – 1156.9%
  • Google – 148.36%

In comparison to these stocks, an investor’s 5-year investment in bitcoin revealed total returns 22,004%. This technical analysis reveals long term reliability, flexibility, and the tendency of bitcoins to outperform traditional stock investments. The key aspects to consider when you plan to buy BitCoins is –

  • It is growing as a retirement portfolio alternative because investors are feeling more confident in its long-term possibility and existence.
  • FANG stocks are productive but bitcoin outperforms.
  • Bitcoin is a great hedging tool against the possible downfall of traditional stocks.

Bitcoins volatility is decreasing

In recent years, volatility is low that signals maturity. Previously, bitcoin was seen as an intense volatile investment. This trend has lessened with the growing markets. From 2014, daily returns have lowered from 5 to 10. The current level is 2 because of intense liquidity within exchanges.

Due to thorough understanding and usage of bitcoin with confidence in long term network viability without inducing panic in buying and selling of BTCs. Less volatility means low risk and you can use bitcoin as a hedging tool against negative market pressures and currency collapses.

Network strength

Bitcoin network functions properly, securely because of the exponential increase in its computing power hacking becomes more difficult. Bitcoin is an investment vehicle because of the electricity consumed to power cryptographic hash function on the blockchain network.

Why is bitcoin price increasing?

Bitcoin technology is here to stay. Due to the financial crisis increasing in Venezuela, Australia and India paired with the uncertain geopolitical and macroeconomic environment the demand for digital currency BTC has heightened.

BTC is a great alternative for businesses in developing countries searching for digital payment channels. Blockchain technology knowledge and awareness along with market activity made investors invest in Bitcoin.

Even if BTC is in the experimental stage, its indicators have been bullish. If you are still a beginner in the cybercurrency market, it is recommended to take time and learn bitcoin technology in deep before investing. Never invest more than you can afford to lose. It is hyped that bitcoin prices will escalate quickly but time will tell. At the moment, indicators signal that it is time for bitcoin investment!

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