Why Bitcoin Investments Shouldn’t Be Rejected

By Daniel Zo Bitcoin, Investment

If you’ve been following the recent news from the digital currency industry, then chances are that you’ve heard once the Securities Exchange Commission SEC decided to reject the Winklevoss-backed Bitcoin ETF project, which would’ve made bitcoin-based investments easier and more accessible to people throughout the world. The SEC is reportedly mostly concerned about the fraud potential that bitcoin poses, alongside with its high volatility and possibilities of price manipulation, which are due to the continuous lack of regulation, and reportedly, transparency, although this isn’t really the case.

Because of this, a possible channel of bitcoin investments remains unopened, but those who are interested can still invest in the digital currency through the numerous bitcoin exchanges and bitcoin investment trusts. However, is there an attractiveness to bitcoin investments? We’ll attempt to tackle some of the most compelling reasons on why you may want to invest some of your capital in digital currencies.

Bitcoin investment

The large expectation for a bitcoin price increase

During the last couple of months, bitcoin’s price has grown considerably. In fact, it has tripled in value in 12 months, and the last few ones, have brought along a 30% value increase as well. Since it was released to this very moment, its value has grown from roughly 7 cents, to more than $1,100. By doing some math, a 325% compounded annual return rate is obtained, which is absolutely huge.

Technical analysis has also proven that bitcoin will surely have larger performances in the future. With the world’s traditional financial system falling apart due to a lack of innovation, it won’t be long until investors, and capital-holders from all around the world turn to digital currencies, as methods of storing their assets.

Bitcoin seen as a hedge standing against uncertainty at a global level

So far, economic analysts have managed to obtain preliminary evidence stating that bitcoin can help serve as a hedge against global uncertainty. If investing with this idea in mind, you can think of yourself as purchasing a long-term insurance that may just pay off very well. While traditional currencies can rise and fall for numerous reasons, given the fact that they are centralized, and massively influenced by worldwide politics and by banks, bitcoin remains both transparent and decentralized.

Investing in bitcoin-based companies

Bitcoin and blockchain start-ups are sprouting up on a daily basis, and most of them bear huge potential given the fact that they may just fuel the future’s financial systems. Therefore, investments into these companies can turn out to be extremely fruitful in the future. This would be a smart idea if you’re afraid of investing and storing actual digital currency, and would rather investment in a company whose performance depends on the actual performance, adoption rate and popularity of bitcoin itself.

Based on everything that has been outlined so far, what is your opinion on bitcoin investments? Are they worth it? Why, or why not? Let us know your thoughts.