Bitcoin and cryptocurrencies have been one of the hottest topics among investors in recent years. Initially, banks and large institutions issued rather negative public statements about Bitcoin, but today it is not uncommon to see banks offering investment products in cryptocurrencies and or even Fortune 500 companies like Tesla buying Bitcoin.
In this article, we go over some of the characteristics of cryptos and why they have become such a popular investment vehicle. Let’s get started:
Determining your own advantage over the market in investing requires a much longer period of time than traditional investing than cryptos. If you take a look at the Bitcoin cycles, there’s very few times when you could have bought Bitcoin and be at a loss with your investment. Therefore, you can realize your potential returns much quicker with crypto.
Many online gamers have come across cryptos through various channels, and online gambling industry has a big role in making cryptocurrency a mainstream thing. Bitcoin and other cryptos make money transfers to online casinos easier as well even in jurisdictions that limit online gambling. According to Beastsofpoker.com, dozens of poker operators have moved into offering crypto payments for their players. As with traditional payment methods, customers can get a deposit bonus and the money will appear in their gaming account at its fastest in just a few minutes.
Another great reason to invest in crypto is the desire to have some type of a long-term store of value. If you keep your money in bank saving account, inflation is going to eat up some of your capital. Unlike fiat money, cryptocurrencies like Bitcoin have a limited supply. This is capped by math algorithms and makes it impossible for any government agency to dilute the value of the crypto through inflation.
Lastly, we should not forget that people have an inherent need for herd behavior. If any investment, especially the trendy Bitcoin, has risen +100% in a short period of time and everyone is constantly talking about the wild returns, buying Bitcoin along with the herd may seem like a very attractive option.