Why Bitcoin Is A Good Investment?
Satoshi Nakamoto laid the foundation of the first digital currency or more popularly known as cryptocurrency.
Unregulated, decentralized currency worked in favor of the people who wanted it to work in favor of them.
Over the past decade, the world has seen a cryptocurrency boom and with the coming of age technology & the term, Bitcoin is gaining more and more traction.
Let’s have a look at why Bitcoin is a good investment. (Please note that this article presents factual information and is not intended as financial advice.)
Early Bitcoin Investment
Bitcoin is considered the founding father of cryptocurrencies and at the time of writing the price of one Bitcoin (BTC) sits comfortably over a whopping $35,000!
In early 2021, the price of Bitcoin soared to new heights.
In January, it reached an incredible milestone of $40,000, breaking records. Not long after, in February, it went even further and reached a remarkable peak of $50,000. But the excitement didn't end there; it kept growing and reached an incredible peak of around $68,000, the highest price it has ever reached.
Following the two all-time highs, the price rocketed through and achieved the highest price in its history of around $68,000!
To put things in perspective, this price put all the previous Bitcoin holders in profit, even if they had invested in the previous all-time highs.
As per statistics, right from its official rollout, Bitcoin has given a staggering 26,000% returns!
If someone had purchased Bitcoin for just $1 and held onto it all these years, their investment would now be worth an astounding $3.7 million!
In fact, there are a bunch of people who are now billionaires because they simply bought and held Bitcoin for all these years.
Advantages of Bitcoin Investment
Bitcoin offers a significant advantage as an investment due to its round-the-clock tradability and the flexibility to buy or sell any desired amount, regardless of the time or season.
This means that one can hold a fraction of Bitcoin for an investment as low as $1.
Furthermore, unlike the stock market, the cryptocurrency market remains unregulated with the price being driven by supply, volume and demand. In addition to that what makes this investment unique is that there are a limited number of Bitcoins in the world.
Out of a total of 21 million, over 19 million Bitcoins have been mined and are currently in circulation. The fact that Bitcoin is limited in number makes it an asset and subsequently a good investment.
Since Bitcoin works on the process of “proof of work”, people who validate transactions earn a block reward of 6.5 Bitcoins per transaction. This amount makes the highest dividends and annual returns in the stock market look like a joke.
Fun Fact: Microstrategy is the largest Bitcoin holder in the world!
Bitcoin Investment in Asia
Bitcoin investment in Asia is done in tremendous volumes. While most countries allow Bitcoin trading, a few don’t example, Bangladesh and some have put laws to tax and regulate it.
For Bitcoin, Vietnam wins the spot for overall crypto transaction value as well as payments made by individuals.
While for the largest crypto community, India rests comfortably in the top spot with over a hundred million users!
In China, even though a law was passed that made Bitcoin and other cryptocurrencies, not a legal tender, despite that it holds the record for having the largest Bitcoin mining farm in the world.
In Dalian, China, 750 Bitcoins are mined every month with a monthly energy cost of over one million dollars.
Although Bitcoin is not considered a legal tender in India, it hasn't been prohibited by the government either.
A flat tax of 30% has to be paid by the investor on any profit made through the sale of cryptocurrencies and this cannot be offset by any losses. Additionally, a TDS of 1% is also cut for the transfer of funds which can later be claimed during the filing of taxes.
For investing purposes, there are several platforms and exchanges both global and local which people in Asia use to buy, sell, or trade Bitcoin.
These exchanges allow easy Bitcoin investment with options to buy and sell whenever one pleases. While the requirement of KYC verification might not be mandatory for global exchanges, it is mandatory for local exchanges but that in no way hampers their functionality.
Bitcoin Investment Calculator
While investing in Bitcoin might be simple, it is important to maintain a record of the investment and stay updated on the profits and losses of the Bitcoin investment.
While all the exchanges display the current holding value of an investor’s investment, they may or may not show the overall gain or loss.
In such a case calculating everything manually might become a tough task. Therefore to tackle this, many Bitcoin investment calculators have been launched.
These calculators track an individual’s investment, average out the price and also display the current value of profit or loss. In these calculators all one needs to do is put in the amount purchased and the computer does the rest.
A few Bitcoin investment calculators are:
These platforms are free to use and work in sync with the current market price of Bitcoin thereby displaying the real-time data.
Bitcoin Investment using Coinhunt
Starting the journey as a Bitcoin and crypto investor can be challenging and confusing. As the market swarms with numerous cryptocurrencies, it's only natural for novice investors to feel overwhelmed and disoriented.
To tackle this issue, there exists a website called Coinhunt.cc.
This website helps investors discover the best-trending coins in an instant. The listings on the site are added automatically by a smart bot that processes the data automatically.
Depending upon the trend, the data might change instantly hence one should keep checking the site regularly.
Coinhunt allows people to be the first to know about a popularly trending cryptocurrency on the verge of booming. It even helps in discovering a coin with good potential, worthy enough to be invested in.
However, the trending coins displayed on the site are for informational purposes only. They are not guaranteed to be correct and are subject to change without notice.
Lastly, however great Bitcoin investment may sound, it has its own risks and it is important to always do your own research (DYOR) before putting money in.
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