Why are people investing in Bitcoin?

Bitcoin and cryptocurrencies had few takers in the initial years after inception. However, the prices of Bitcoins and cryptocurrencies have sky-rocketed for the last few years. Investors gradually shifted from investing in Bitcoin wallet like banks and stock markets to cryptocurrencies. Bitcoin and other cryptocurrencies reached new highs during the 3rd quarter of 2021. The prices tripled even more for many coins. But suddenly, around the end of the 4th quarter of 2021, cryptocurrencies started to get the hammering and began profusely bleeding. Many investors lost all their hard-earned bounty.  

Skeptical financial pundits voiced their opinion more, saying cryptocurrency prices soared due to hype. However, this is not true according to many other financial and social experts, and according to them, there are definite reasons why people trust more on Bitcoin investment. It is time to discuss the reasons for investor confidence in cryptocurrencies. 

Why invest in Bitcoin?

The wealthiest people can smell the source of profit more than others. When the wealthiest of the world, like Elon Musk, Sam Bankman-Fried, Brian Armstrong, and others, are investing heavily in cryptocurrencies, there is enough encouragement for others to trust investments in cryptocurrencies. 

• Anonymity – One of the most significant advantages of cryptocurrency investments is that the entire process is decentralized, and the investors can stay anonymous. The central banks do not have any control over crypto trading, and the investors feel relaxed as the prices of cryptos are not controlled by the central bank but depend on the demand and supply of the coins in the crypto-trading markets.

• Connecting With Peers For Trading – No agents or institutions need to buy or purchase cryptocurrencies. An investor can directly contact the seller or the buyer on any of the best crypto trading platforms. Unlike traditional investments, there is no need to pay commissions or processing fees; thus, the profit margins are higher. Again, you can stay away from hackers if your wallets are securedon platforms. Even if any part is hacked by chance, you can trade with the remaining parts immediately, unlike banks and other financial institutions where database restoration takes much time.

• Acceptance By Many Payment Gateways – Many payment gateways like PayPal and others accept cryptocurrencies as a mode of payment like fiat currencies. Thus investors are gaining confidence in the coins and investing more in them. People consider cryptocurrencies as digital gold and think they will replace fiat currencies to a great extent in the future; thus, they are investing in the coins.

• Profits – To date, no other form of investment has given such a high profit. Although cryptocurrencies are getting hammered at times, they are unstoppable when their prices rise. The exponential rise in its value is luring the investors.Thus, the early investors can earn huge profits selling their cryptos while new buyers look for golden days ahead of them. The limited supply of cryptocurrencies is creating demands in the market, and investors are reaping huge profits when the demand is skyrocketing.

• Ease Of Investing and Operation – Everything in cryptocurrency trading and investment is digital and virtual, and nothing is physical. There is no paperwork needed, unlike banks and other financial institutions. You can only use your mobile phone or computer to register in one of the best trading platforms and start investing. There is no waiting period, physical verification, or physical distribution of documents. Thus the ease of investment and operation is drawing more investors into cryptocurrencies.

• Social Status – Many believe owning Bitcoins and other cryptocurrencies enhance their social status. They feel proud to tell their return on investments to others. Thus, it is one of the social reasons, particularly for the rich, to invest in cryptocurrencies. We can say, cryptocurrencies are satisfying the psychological needs of many people.

Conclusion

Cryptocurrencies are not hyped, and there are genuine reasons why people trust this new form of investment. Profits, the ease of trading, anonymity, and enhancement of social status make these coins more demanding, and more and more people are investing in them. Like the stock exchange, the crypto market may be bearish sometimes, but they bounce back, fighting all market odds. Thus investors gain more confidence in them, and the volume of investments is increasing daily.