Many analysts over the years have said that bitcoin is a speculative bubble, comparing it to tulips or beanie babies. However, BTC is still here and doesn’t look to be going anywhere. Here are a few reasons why bitcoin was and continues to be, a solid investment.
The Bitcoin “Bubble” refuses to Pop
Bitcoin, since it’s launch in 2009, the price has been rising. Other famous bubbles like tulip mania in the 1600s have lasted for only a few years, whereas BTC has been going strong for over a decade now. Not only has the price increased, but the trading volume per day has also grown just as exponentially.
Bitcoin also has been one of the safest assets to invest in over the past ten years. If you dollar cost averaged buying BTC weekly, there isn’t a single year where you wouldn’t make a return on your investment.
Investing in cryptocurrency has fundamentally changed the financial world. Previously, investing was something only licensed venture capitalists could do. Regular people were completely unable to get in on groundbreaking, up and coming technology. bitcoin has leveled the playing field, allowing anyone with an internet connection to make big gains.
BTC vs the world
Buying bitcoin has also outperformed every single major tech stocks in past years. In terms of percent return on investment, BTC has done nearly 40x better from 2013 – 2019 verses the top tech stocks since 2009.
When comparing bitcoin to global currencies, BTC ranks roughly 25th in the world in terms of market cap. This puts BTC just ahead of some fiat currencies like the Colombian Peso and New Zealand’s dollar.
Many people say bitcoin is dead because it’s dropped half of its value in the past year and a half. However, you could also say BTC has increased tenfold over the past three years. Short term, its safe to assume the price of crypto-currencies will continue to be extremely volatile. But one thing is for sure, bitcoin and other cryptocurrencies aren’t going anywhere anytime soon.
Where do you see BTC going for the rest of the year? Will we see a similar pattern to the past, or will Bitcoin shake things up? Let us know your thoughts in the comments down below!
Images courtesy of Shutterstock, Bitcoinist Media Library
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