Investingin Bitcoin versus investing in equity market
Equityor Stock markets have been around for a long time now. Bitcoins onthe other hand are quite new and are referred to as a new form ofdigital currency. Bitcoin and other cryptocurrencies only begangaining massive popularity in 2017.The currency is highly volatile asof now and there are huge fluctuations in its price. Many experts arepredicting that BitcoInvest the currency of the future and it is ableto provide very good returns in the coming years. Thus Bitcoin isslowly emerging as a very good investment option .Let us have a lookat the comparative study between investing in a stock market andinvesting in Bitcoin
Patoienceis the key to succeed in a stock market. In order to make a certainamount of profit on your investment, it takes a lot of time,sometimes even years together in the stock market. Bitcoin on theother hand has proved to be highly volatile so far. Due to thisvolatile nature, sometimes its value increases multifold andinvestors can make huge profits. Thus Bitcoins can be a betteralternative than trading in stocks when it comes to the ease withwhich you can make profits.
Bitcoinsare accepted in more than 180 countries across the world. They havevery low transaction fees and can be transferred to any place acrossthe world. Stocks on the other hand are limited to trading within aparticular country, are limited to certain buyers and have very hightrading fees.
Bitcoinshave a cap of around 21 million. Nowadays many people are investingin Bitcoins, after knowing about its potential. This has led to anincrease in its demand. Also the cap on mining of Bitcoins ensuresthat the demand will be always more than the supply. Stocks on theother hand have no such cap associated with them. The limited supplyfactor is something that will make investing in Bitcoins worthwhile.Share market has a predictable trend when it comes to the demand andsupply methods.
Bitcoinis volatile and hence there is always a certain risk involved ininvesting in this .This risk is also prevalent in case of sharemarket. Share market, however enjoys Government backing which thecryptocurrency market does not have. But there are so many people whohave put their trust in the cryptocurrency market and earned millionsof dollars. It is easy to trade with Bitcoins as the transaction feesis very less compared to stock markets.