With the economic world almost in shambles due to the ongoing pandemic crisis, investors are looking beyond traditional banking stocks, bonds, and assets like gold, etc., for investment. One of the most lucrative forms of investment that has emerged in the current times as a safe haven asset is Bitcoin. Bitcoin is trending in the economic world. Read on to find out more about how Bitcoin is better than traditional banking and gold, and start trading in Bitcoin and other cryptocurrencies at https://libra-profitsystembot.com/.
How is Bitcoin more advantageous than traditional banking?
Bank investment has always been the standard of the financial world. However, the advanced technology and decentralized nature of Bitcoin has made the cryptocurrency a preferred mode of investment. Following are the reasons why Bitcoin is better than traditional banking:
- The volatility of Bitcoin price
The price of Bitcoin plummets and soars depending on market conditions, and an investor can rake in a good fortune on his investment through accurate analysis of the rising and falling price pattern of Bitcoin. Traditional banking stock is not volatile, which means that there is no scope of securing extra profits on the investment.
- No middle man in Bitcoin
Investment in Bitcoin is quick and completely profitable as there is no involvement of central authorities like banks. On the other hand, investment in traditional stocks at the banks involves several parties, and the bank takes away a part of the interest. It is also very time-consuming, and the yield is not so high either.
- There is no governmental control
As Bitcoin is decentralized, it is unaffected by governmental control. The ongoing pandemic has not adversely affected Bitcoin investment and transactions. There cannot be any devaluation of Bitcoin because of the absence of governmental control. Such is not the case when it comes to traditional banking, which is heavily regulated by the government.
- There is no scope of fraudulence
The very nature of Bitcoin ensures that there can be no fraud. The Blockchain technology verifies every transaction and maintains a record of the transactions in the form of blocks. There cannot be any tampering or reversal of transactions. Traditional banking involves a great degree of fraudulence. There can be counterfeit of currencies, bank failure, and other such incidents that incur losses for the investor.
- Elimination of identity theft
The topnotch security mechanism of Bitcoin paired with two-factor authentication, makes sure that every transaction is verified and validated without any leakage of user information. On the other hand, traditional banking involves the disclosure of the user’s identity to third parties, which is not secure.=
Bitcoin vs. Gold
Bitcoin enthusiasts do not shy away from referring to Bitcoin as digital gold. Here are the few differences between Bitcoin and gold:
- While the prices of both Bitcoin and gold are volatile, the degree of volatility, in terms of the true average range, is higher in the case of Bitcoin.
- Bitcoin is stored in the Bitcoin wallet and is secured by the private key. Gold is a tangible asset that is stored in safety lockers and bank vaults.
- The history and inherent value determines the demand for gold. The price speculation and the underlying Blockchain technology creates the demand dynamics for Bitcoin.
How is investment in Bitcoin is better than investment in gold?
Investors prefer Bitcoin over gold for the following reasons:
- There can be no counterfeiting of Bitcoin, whereas fake gold abounds in the market.
- The higher degree of volatility of Bitcoin makes it more profitable.
- The limited supply of Bitcoin adds to its value appreciation and ensures the price regulation of Bitcoin, thereby making it more suitable for investment.
From the perspective of investment and taking the recent financial scenario into consideration, it seems that Bitcoin is more profitable than traditional banking and gold. With the stocks collapsing due to the global lockdown, and the price of gold moving at a slow pace, it cannot be a lucrative option to invest in either. So make the best of the situation and invest in Bitcoin.