Is it safe to invest Bitcoin in 2020?

16:00 | 06/01/2020
So far, we have taken a fairly general look at the history of money; the concept of Bitcoin as "digital gold"; and a number of macroeconomic forces that shape the global economy.
is it safe to invest bitcoin in 2020
Source: ccn.com

We have asserted that the current global monetary system is rife with problems with great consequences that may come true in today's global economy.

It is therefore not surprising that today, banks and financial institutions have made the most of these loopholes to enrich themselves and their closest friends with the cost that the rest of the world's population suffers.

This begs the questions: How can a healthy monetary platform be leveraged to serve the interests of many? And will bitcoin replace fiat money?

Bitcoin (BTC)

Current market cap: $144 billion

Current price: ~$8,000

Block Generation: 10 minutes block time

Bitcoin is a potential investment in 2019 and the following years, the long-term trend will still increase and start to be more stable, you can buy Bitcon to start your investment but before investing you must determine that investing Bitcoin is a form of Super profitable investment, the opportunity to make a lot of money, but the risk is always hidden, only invest with the capital that you can lose and take responsibility for your own money.

It is often advised not to invest more than 10 per cent of your total assets. It is important to learn how to invest in Bitcoin with a reputable platform. So you can get acquainted with the market first on most bitcoin exchanges, such as Etoro.

is it safe to invest bitcoin in 2020
Bitcoin Chart (Source: coinmarketcap.com)

Bitcoin's price peaked at the end of 2017 and plummeted from 2018, but in 2019 the price of Bitcoin gradually went into stable orbit. In January 2019, Bitcoin was priced at around $3,800 and currently holds the price at around $8,000.

In addition, the value of Bitcoin's capitalisation has increased steadily from $68 billion (January 2019) to $144 billion (November 2019). In 2019, it can be said that Bitcoin value has gradually stabilised and increasing.

ADVANTAGES OF BITCOIN

  • Not under the control of the government or any individual: This creates comfort in the rules of participation as well as freedom of transactions without having to worry about any regulatory or third party issues.
  • Avoid cheating: Bitcoin transactions are completely under the system (electronic money), do not print out any banknotes or credits so it cannot be fake. This means there is no cost or emissions from a printing factory producing paper money.
  • Confidentiality: Bitcoin does not require you to confirm or display personal information, so the security is very high and safe. Except for when you buy and sell online and need to ship to your address, bitcoin remains anonymous users. So far, there has been no security flaw in bitcoin.
  • Continuous development: Some countries are still limited in currency, but Bitcoin will be "transnational" just for the internet. There have also been many businesses that have started to apply bitcoin in transactions and payments.

DISADVANTAGES OF BITCOIN

  • Trading Bitcoin is not simple:Bitcoin is not like a game that wants to be played, it comes with knowledge, judgment and analysis. There is also a bit of tech savvy to work on the application.
  • The double-edged sword from refusing to be governed by law: When a bad case happens like the bitcoin system is in trouble and you are affected by rights, neither side will be responsible for that for you. Many hackers also take advantage of that uncontrolled attack on the assets of exchanges or bitcoin account holders.
  • Abnormality: Many times users have been stunned by the volatility of Bitcoin, sometimes devaluating, sometimes soaring and completely unpredictable.

Why buy Bitcoin?

Obviously when investing in anything, we also expect to profit in the future. So the important question is not whether or not to invest in Bitcoin, but whether Bitcoin will still have the ability to grow and profit in the future.

Bitcoin is still in its infancy

When looking at the evolution of Bitcoin and comparing it to other financial markets, we have full evidence that Bitcoin is currently in the beginning.

At present, the capitalisation of Bitcoin is only around $144 billion. When comparing this figure with other markets, this figure is too small compared to the value of global storage assets of millions of billion dollars.

Bitcoin is now accepted by many countries such as Japan, Sweden, the United States, Indonesia,… and a number of large technology corporations have begun to accept payments or use the technology behind Bitcoin such as Microsoft, Samsung, Starbucks, Bakkt, Overstock, Dell, Dish Network, Dynamite Entertainment, Expedia, .. and many other names.

In the world, there are many people who get rich because of Bitcoin, including billionaires like brothers Tyler and Cameron Winklevoss, Roger Ver (CEO of Bitcoin.com), Tim Draper, Charlie Shrem, 20-years-old millionaire USD Erik Finman.,.. these are people investing in Bitcoin very early and until now they still pursue Bitcoin.

The value of Bitcoin in the long term

Bitcoin is the first and most powerful digital currency, playing a key role in the virtual currency market system. In the long run, Bitcoin is predicted to be valuable and widely available in addition to fiat currencies.

Moreover, important macroeconomic factors such as the China-American trade war or the failure to agree on a deal between the UK and the EU (Brexit) will strongly impact the price of Bitcoin. This is because these financial events will likely lead to monetary easing policy in major countries to keep the momentum of economic growth.

As a result, major currencies such as the USD or EURO are likely to be devalued. At this point, Bitcoin can replace and become an important investment channel. There are many famous investors, lawmakers predict Bitcoin will evolve and become a "digital gold mine", even bigger than the gold market (worth more than $8.6 billion) in long-term.

Will Bitcoin die? Certainly Bitcoin will not die, but it will continue to grow further. Even now when Bitcoin's price is only one-half the amount of record time, I believe that in the future, Bitcoin's price will fluctuate with a "big price storm".

Should you invest in Bitcoin right now? The answer lies in your beliefs about the future of the digital currency market, which I am extremely sure at the moment is that 2020 will be a very important year for Bitcoin and others digital currencies. And let’s see how Wall Street will treat Bitcoin.

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