Bitcoin, due to its nature - the price is mainly based on two parts of the equation - supply and demand, very often falls victim to the manipulation of larger players. Due to the low valuation of Bitcoin in relation to other values (currently around $ 187 billion), a transaction above several hundred million dollars can cause incredible fluctuations in this market. The movement of one of the institutional or even private investors may cause sudden movements in the stock markets reaching several percent. These types of movements can be calculated and adjusted to the strategies of shaping the current mood on the stock exchanges.
Less experienced investors very often react emotionally to all kinds of news from the world about cryptocurrencies, including Bitcoin, basing their investment strategy on the current sentiment towards the market. In the era of digital freedom of speech, a large proportion of messages that appear are unverified or very often deliberately their meaning is exalted or even opposite to the actual state. Some messages are muffled and some are intentionally publicized. This type of strategy is adopted by the main media, which are able to direct the sentiment of the market without significant political and economic changes.
Investing in cryptocurrencies carries enormous risks. It also has the potential for great profits. But how do bitcoin and other cryptocurrencies compare to other assets? Below we will analyze the potential of bitcoin in comparison with the most popular assets on the Polish market
There has been a real estate bubble in recent years. Their prices have increased by up to 40%, and more and more new flats are being built every year. There are also more and more trainings in the field of long-term investment and the so-called flipping. The first model assumes the purchase of apartments for rent. Despite the fact that Poles earn more and more, the rental market is still developing. Despite the continuous increase in the number of rental offers, the demand is still insatiable. The flip model, in turn, assumes buying flats, renovating them and selling them at a higher price. While long-term rental can give you a 5% return on investment per year, flipping has a profit potential of 10-12% per year. However, trainers selling the dream of being a rentier forget that real estate requires a lot of capital or a mortgage, which requires a creditworthiness. If you start investing in cryptocurrencies, our capital may be much lower, thanks to which such an investment is more available.
The times when banks offered high rates of return on deposits just to attract new customers are long over. Currently, the interest rate on deposits is lower than that given by Central Statistical Office inflation. This means that by keeping funds in the deposit, we actually provide banks with financial liquidity, enabling them to offer loans, while losing year after year due to the decline in the purchasing power of money. For example, Bitcoin's value is increasing over time and this trend will probably continue, so investing in cryptocurrencies may be more profitable than a bank deposit
The one related to shares seems to be an interesting market. We invest in the development of companies listed on domestic or world stock exchanges. The stock market, however, requires a lot of time associated with conducting a fundamental analysis and the difficulty in determining the difference between the value of a stock and the value of the company. It often happens that companies are overestimated by investors. However, there are also white crows that, despite being based on real assets such as real estate, have an underestimated valuation. The stock market requires enormous knowledge and skills, and due to being a regulated market, it does not offer prospects for increases of hundreds of percent in the short term. Investing in cryptocurrencies, in contrast, requires much less knowledge and experience, which may seem like a more interesting choice.
Precious metals seem to be an interesting investment. Buying them, however, requires you to learn the techniques of recognizing the actual ores from counterfeits. It is also important from the investment point of view that investing capital in precious metals is a rather long-term form of saving. Most reputable gold dealers have a spread of around 10%. This means that gold has to rise in value just by 10% in order to pay out what we have invested and release capital. Selling below this increase is associated with a loss. Investments in Bitcoin and other cryptocurrencies may be safer due to the lower chance of cheating us, because cryptocurrencies as a payment method have an easier way of verification.
The undoubted advantage of investing in cryptocurrencies is the fact that there is no capital limit on this market. On the BitClude exchange, you can buy cryptocurrencies from just PLN 20. In the case of the assets described above, such an amount is often not enough even for a course related to a given topic.
Another big advantage of investing in cryptocurrencies is the fact that most of them are nothing more than cryptocurrency-based projects that can be compared to decentralized companies. As is the case in the stock market, any cryptocurrency project should define goals by describing them in the whitepaper and setting their implementation over time using a roadmap. As a rule, achieving the goals is associated with an increase in value, similar to the traditional market.
The last advantage of the cryptocurrency investment market is the fact that relatively few people, and therefore capital, are currently involved in this industry. This means that if cryptocurrencies achieve their goals and create actual functionality for themselves, their value can increase significantly. In addition, regulations can have a large impact on the increase in the value of Bitcoin and other digital currencies. This impact can be both positive and negative. The future will show how the market and its community will behave.
The BitClude exchange, which protects the interests of their clients, new projects are constantly being created on the cryptocurrency trading floor, the only purpose of which is to obtain funds from unaware investors. Cryptocurrencies can be a speculative part of your investment portfolio, but basing your entire finances on bitcoin can be very risky and unwise.