Bitcoin success has changed the world of finance, growing from a niche digital currency into a global phenomenon. Launched in 2009, it has gained recognition for its innovative nature, offering an alternative to the traditional banking system. As both a store of value and an exchange, Bitcoin has received widespread interest from investors, corporations, and even governments including the likes of President Donald Trump.
Bitcoin price continues to gain highs
Bitcoin is now on track for its best monthly performance since February. Trump’s recent polls have boosted his popularity by 45%. The increase in profits can be attributed to Trump’s inclusion of pro-crypto lawmakers elected to Congress including Trump himself. This change in political influence has led to growing confidence in the cryptocurrency market, because more support for crypto-friendly policies can increase the acceptance of digital currency, increasing the price of Bitcoin increase in its status as a leading asset.
The Bitcoins the value is more than double since the beginning of this year. The approval of US-listed bitcoin exchange-traded funds (ETFs) in January of this year also helped boost the market. Bitcoin is up by 130% this year. Shane Oliver, chief economist and head of investment strategy at AMP Sydney, said, “Longevity is highly regarded, that’s the reality of things, as an economist and more than an investor, it’s hard for me to take it seriously… but it has an important part in it and now it’s going forward.”
Bitcoin is almost $100,000
Bitcoin broke the $75,000 mark after Trump’s election in early November. On the 21st, he finally came to break the $100,000 ceiling. Despite the growing success of cryptocurrency, many are skeptical. However, policy developments regarding Bitcoin such as the January adoption of a US-listed Bitcoin ETF may help increase public confidence.
“There has never been an ETF like this before,” said Ric Edelman, founder of the Digital Assets Council of Financial Professionals. “There are ETFs that invest in stocks of companies that trade in crypto companies, such as exchanges and miners, and there are ETFs that buy futures in bitcoin, which like buying equity options instead of trading, but so far, there haven’t been any ETFs that invest in bitcoin.”
Trying to buy into Bitcoin? Here’s what you need to know
If you are talking warm to the idea of ​​adding Bitcoin to your investment portfolio, there are many things to consider. Bitcoin and other cryptocurrencies are considered as an investment, which means that people invest in them in the hope that their value will rise quickly. These things are very volatile, and investors hope to gain from price changes, although there is also a lot of risk involved.
Michael Finke, a professor of wealth management at The American College of Financial Services, said: “Traditionally, the way you think about financial assets is that you provide capital to companies. “The company uses the money, and people buy it. That creates value. You can value the company based on the value you expect in the future. In bitcoin, it doesn’t produce anything, so speculation is entirely speculative“
Although the price of Bitcoin has increased more than 600% in the last five years, it is different from traditional investments like stocks. Unlike companies that produce products and pay dividends, the value of Bitcoin is widely reported and has a wide range of uses in the world. In addition, the wealth of the stock market is often derived from large amounts of capital invested which over time allows for continuous growth. On the other hand, Bitcoin does not offer the same opportunity for accumulation or reinvestment.
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