Bitcoin has attracted many investors for its incredible long-term returns, but its volatility keeps some investors on the sidelines. Major cryptocurrencies regularly watch sharp fluctuations that can push up and down by 10% in a few days.
Explore more: 13 cheap cryptocurrencies with the best potential rise for you
Advertisement: High Yield Saving Offer
Powered by Money.com – Yahoo may earn fees through the links above.
Try this: How much money do you need to consider the middle class in all states?
Not all investors want to address that level of uncertainty, but when compared to popular benchmarks like the S&P 500 and Nasdaq Composite, the results cannot be questioned. Cryptocurrency has recently replayed $100,000 per coin, which could be high.
If you’re on Bitcoin and fence, these are some of the reasons to consider starting.
Bitcoin is not making any profits, but it doesn’t have net profit growth like public companies, but its returns are unquestionable. Bitcoin has risen 68% over the past year and 978% over the past five years.
The S&P 500 and Nasdaq Composite have not doubled in the last five years. Bitcoin has proven to be a viable way to spend money. Although results are not guaranteed, many investors use long-term returns to assess momentum and investor appetite. Bitcoin has been hitting the mark for a long time despite its story about uncertainty.
Find out: Coinbase Fees – A complete breakdown of how to minimize costs
Last year was a big deal for Bitcoin. The Spot Bitcoin ETF began trading on January 11, 2024, with many financial institutions rushing to offer their own. BlackRock, Fidelity, Ark Invest, Vaneck, and Grayscale are some of the companies that launched Bitcoin ETFs.
Each of these ETFs puts more money into Bitcoin, leading to pressure to rise in prices. Bitcoin ETFs make digital currency access more accessible to everyday investors, and this trend could lead to higher Bitcoin in the long term.
President Donald Trump established Bitcoin Strategy Preparation in an executive order. This strategic preparation can increase the demand for crypto and increase the profits of investors.
Bitcoin Strategic Reserve is relatively old news, but it can ripple over individual conditions. For example, Arizona has recently become the second US state to establish a strategic reserve for Bitcoin. More states are able to follow the trend, and each commitment requires more Bitcoin purchases.
Bitcoin also serves as a valuable inflation hedge that gives more value as central banks print more money. There are only 21 million Bitcoins available, making it impossible for anyone to increase their supply. That’s the beauty of Bitcoin’s decentralized blockchain.
The story continues