Before Bitcoin came into the limelight, the possession of Gold and Silver used to be the primary store of value for people. They used to invest in these as an asset option to protect themselves against inflation. The investment in these two commodities is huge because it’s known for stability. The value increases exponentially with time. On the other hand, Bitcoin is volatile and can touch the extremum in seconds. Also, it is unpredictable in nature. When It’s kept and held in digital wallets, it could become a cakewalk thing for hackers to hack the system and steal those coins.
Still, it’s evident in reality that the world is shifting from traditional fiat currency to digital currency like Bitcoin.
Why is it so that the market is slightly inclined towards investing rapidly in Bitcoins? Yes, there are reasons why people are getting attracted to buy and store digital assets.
So before you explore the reasons of huge increase in investment in Bitcoins, let’s discuss a bit about the dominating cryptocurrency.
Unlike your cash and physical currency, Bitcoin is a currency that can be seen or felt but held virtually.
Yes, it’s digital in nature but you can use your Bitcoins to trade, buy services and do a lot of things out of it. Many retailers have also started to accept Bitcoins as a mode of currency. You can also make distant transactions using those Bitcoins to transfer them to the people who are sitting on another continent.
Bitcoin works on Blockchain Technology.
A blockchain is a database that keeps your data stored and links all the records with a thread called Nodes. These nodes help in binding all the transactions made and keep track of everything.
Why is Bitcoin Investment Rising in India?
In spite of Bitcoin being so volatile in nature, people are getting deep into it. Yes, there are reasons to make you believe that Bitcoin is a better investment option, and you must go and start investing now.
- If we say that a Bitcoin fluctuates with every passing second, it doesn’t only mean that it’s going to retard every time. Yes, it’s a possibility. But because the market remains bullish most of the time, it could take new heights, and you can book huge profits even with lesser investment.
- According to the Financial Express report, Bitcoin was around ₹23,61,651 on 1 Jan 2021. The market has grown around 317.2% from Jan 2020 to December 2020. That means it had touched the apex and growing at a faster rate. Yes, we could consider the lockdown lifted the crypto market to new heights.
- It’s DECENTRALISED. Again, it’s a surprising yet great thing for those who are looking forward to investing in Bitcoins. They are not held by any single authority or agency to have control over your funds. You’re the sole owner of your Bitcoins.
- If we compare Share Market with Bitcoin and other digital cryptocurrencies, you will observe that the shares couldn’t be bought in fractions, but Bitcoin could be held In parts.
- The above statement provides ease to the investors as they can buy a small portion of Bitcoin and store as long as they want until they find the right time to sell and book good profits.
What’s the Perfect Way to Invest in Bitcoin?
Platforms like WazirX, CoinSwitch Kuber are some of the leading trading platforms serving as leading Bitcoin exchange in India, where you can hold cryptocurrencies either a whole or a part of Bitcoin. These are some of the safest platforms to buy, sell and trade Bitcoin. Also, you can start from a minimal investment of ₹100. These Bitcoin exchange agencies aid you with other amenities to make your experience great.
If you don’t wish to continue with these platforms to facilitate your transactions nor interested in paying the fees too, you can opt for a P2P (Peer to Peer) mode of purchase.
Peer to peer means that one party or an individual will sell the Bitcoins, and the other party or an individual will buy those without other company interference. In simple words, it’s a Bitcoin exchange between two people. Just either one or both should list your ad of demand or supply. Someone will contact you to make transactions with them. However, this peer to peer Bitcoin exchange process is a little bit time taking process. But if you have patience, peer to peer will make.
If we go into details and elaborate charts and graphs of growth and investment options in Bitcoins, you’ll realise that cryptocurrency is the best choice to make profits in less time. However, it’s also important to ponder upon those points and have good knowledge about Bitcoin exchange methods and other cryptocurrencies as well.