Alternative Investment: How safe is it to invest in Bitcoin?
January 28, 2021 8:33 PM
Cryptocurrency is emerging as a preferred investment class especially among millennials due to its properties and underlying technology.
Bitcoin with the market cap of $624 billion as of January 31, 2020, was theoretically ahead of companies like Berkshire Hathaway, Samsung, Visa, Walmart, etc.
By Nischal Shetty CEO WazirX
Bitcoin is a new alternative asset class. It has been around for over a decade, and it has withstood two global recessions. Bitcoin has a pre-programmed limited supply of 21 Million BTC. This makes it a great hedge to protect fiat portfolios. Due to its inflation-beating qualities, cryptocurrency may be used as a hedge like gold.
While gold is traditionally used by investors to hedge against market volatility, cryptocurrency is emerging as a preferred investment class especially among millennials due to its properties and underlying technology. Bitcoin is labeled as digital gold by many, is one of the few assets to consider as a hedge against current uncertainty in global markets.
Moreover, crypto offers a high degree of accessibility, allowing anyone to send and receive them in a permissionless way. Bitcoin is emerging as a store of value for people around the world. It’s already popular in countries like Venezuela, Argentina with rampant hyper-inflation.
In 2020, we saw FinTech giants like MicroStrategy, Grayscale, Square, Paypal, and more jump into crypto. With increasing institutional participation, Bitcoin is emerging as a store of value around the world.
Over the next few months, we’ll see crypto go mainstream much faster with more retail investors, and first-timers are entering the market. The most important thing that first-time investors should bear in mind is that crypto is a high risk, high reward investment option. You should invest based on their risk appetite.
While investing in Bitcoin and other cryptocurrencies, be mindful about the product you use. I’d strongly recommend using legitimate exchanges that follow KYC and AML guidelines. Like any other industry, it’s important to beware of get-rich-quick scams or people who promise to double the invested amount, etc.
Lastly, as an investor, it is your responsibility to do your due diligence before investing in any cryptocurrency. Before investing in a project, we recommend users to always read its whitepaper, about the team and their background, project development status, and team activity on social media.