There has been an unprecedented rise in the price of Bitcoin, tempting thousands of investors across the world to invest in the most popular cryptocurrency asset. But the question is, what with the price fluctuations, security issues, and other such factors, is it a prudent move to invest in Bitcoin? Time has always witnessed the shuttling movement of investors between Bitcoin assets and bank stocks. Whenever there has been any plunge in the price of Bitcoin, investors had always made a beeline back to traditional bank stocks and shares.
But, in this era of technological advancement, is it still economically viable to invest in bank stocks? The income from bank stocks may be steady, but it is so nominal and so fraught with governmental regulations and financial terms and conditions, that the income that flows in from bank stock investment is hardly worth it. But the income is steady as bank stocks almost never fluctuate, which is one of the glowing advantages of bank stock investment and a glaring flaw with regard to Bitcoin investment. Read on to find out more about which investment option is more profitable and visit thebitcoin-hero.com for trading in Bitcoin and other cryptocurrencies.
Bitcoin and bank stocks
Truth be told, Bitcoin is more money-making than bank stocks despite the price fluctuations of Bitcoin. Recently, the price of Bitcoin soared to over 36% of what it was at the beginning of the year, while the stocks of banking giants witnessed an enormous collapse. For example, the stocks of J.P. Morgan Chase & Co. are almost 37% cheaper now than its price in January, and the shares of Wells Fargo & Co. dipped by almost 55%.
The plummeting of the market value of bank stocks occurred due to the global pandemic crisis that has shrouded the banking sector with economic depression. However, the effect of the COVID-19 pandemic has been quite the opposite of Bitcoin. Cryptocurrency experts have pointed out that Bitcoin assets are now a safe haven and are acting as hedge funds against inflation.
In the last few days, gold hit a high price and shattered through the $1700-per-ounce-mark. The net worth of the Oracle of Omaha has increased t0 $70 billion from $10,000. The reports of the company to the SEC (Securities And Exchange Commission) reveal that there have been ample selling activities among the bank stocks of Berkshire. Extensive research indicates that almost 45% of the company’s invested assets are involved in the selling activities, making investors resort to Bitcoin as a safe haven asset against bank stocks.
Which alternative is more profitable: Bitcoin or bank stocks?
In the present times, when the economic world is battling against the financial calamity triggered by the pandemic, it is being observed, that Bitcoin is almost unscathed by the effects of the crisis. In fact, BTC/USD is currently being traded at $9145, and crypto enthusiasts are waiting with bated breath for the price to hit $10,000.
Cryptocurrency analysts are of the opinion that Bitcoin will serve as a better asset than bank stocks in the current scenario. While bank stocks, shares, bonds, oil, and other traditional assets are declining market value, Bitcoin is steady on its trajectory of inclination. The Bitcoin price shows no correlation with any factor apart from the prices of other cryptocurrencies, which indicates that Bitcoin is more profitable than bank stocks.
From a general perspective, here are a few reasons why Bitcoin is more profitable than bank stocks:
- The competition is not so high in the Bitcoin market, which translates to more profits for the investors.
- There is no involvement of central banks, and so the profits flow in, unhindered by regulations.
- The high volatility of Bitcoin price maintains a bullish shift in the market and thereby makes it profitable
- Long-term investment in Bitcoin is always profitable as the dip in price is almost always followed by a price rise.
Do you prefer slow and steady, or can you afford to take a few risks to rake in a huge fortune? When it comes to choosing between Bitcoin and bank stocks, an investor is always faced with risky choices. But there is no denying that, with global pandemic still raging on across the banking sector, an investment in Bitcoin assets would be a wise move. Bank shares and stocks are witnessing a dip in market value, and so investment in Bitcoin is the only key to financial success. Keeping the current banking scenario in mind, Bitcoin is more profitable than traditional assets like bank stocks, high-yield bonds, and shares.