With all the news around Bitcoin, you are probably wondering if it’s a worthy investment this year. The information in this article explains how buying Bitcoin online is worth considering. Four years ago, this cryptocurrency had a successful run throughout the year with more than a thousand percent return. However, at the beginning of the following year, the digital currency lost more than 70% of its value. As a result, it dropped from $20,000 to $14,000 and $4,000 respectively.
2020 was another flourishing year for Bitcoin with investors kicking the year off in a bullish attitude. The year was full of chaos with most of it affecting how the currency valued. Despite the inconveniences, Bitcoin managed to perform better for the remaining period of the year. New investors will find it confusing dealing with Bitcoin. Nonetheless, if you need a reason to buy Bitcoin online, consider the following:
1. Bitcoin is Growing Fast
Worldwide adoption of this digital currency is rapidly increasing. Financial experts suggest that this is one of the best periods to invest in Bitcoin. With the market demand steadily rising, the cryptocurrency can gain even further as seen in its past cycles. The growing demand is among the main factors prompting the emergence of various online platforms. Buy bitcoin online today if you want to be part of the many investors who expect to see explosive Bitcoin prices soon.
2. The Stock to Flow Model is Promising
If you are an avid investor, you are likely familiar with the term ‘S2F’ or ‘stock to flow.’ S2F is useful in quantifying the scarcity of a commodity. Stock represents the entire quantity in circulation. Flow refers to the amount of new supply yearly. Since Bitcoin is open-source software featuring a fixed supply schedule, it’s easy to determine its stock to flow accurately.
There is a lot of data showing that a supply crunch is rising. Keep in mind that the supply can only result from current Bitcoin holders and the digital currency has a limit of twenty-one million coins.
3. Experts Are Going Crypto
More people are turning to cryptocurrency with Bitcoin leading the charts. The excellent performance of this crypto did not go unnoticed with various Wall Street experts going crypto. Regardless of the bullish nature of the crypto’s value, Wall Street investors seem to follow its compelling analysis. Bitcoin has consistently transcended its earlier all-time high after a value crash and recovery.
History suggests that Bitcoin value tends to fluctuate. Following the reports and studies, the cryptocurrency giant is predicted to hit a new all-time high this year.
Conclusion
Buying Bitcoin is an ideal strategy this year. It appears as an asymmetric risk for various investors. It is one of the reasons many people are scared of dealing with Bitcoins and other cryptos. If you were looking for reasons to buy bitcoin online, the information above should be insightful. As much as trading using cryptocurrency is relatively fresh to the public, it is hard to deny that we are gradually embracing the technology and practices that will make it relevant among future users.
