Why Bitcoin Should be Considered as a Good Financial Instrument?
In the whole history gold has been used as currency and before the Bretton Woods agreement repealed it stored as an equivalent of money. After that gold become the most favored financial instrument. These days with the development of technology digital currencies so bitcoin appeared. Why Bitcoin which is accepted as the gold of cryptocurrencies, is considered a good investment instrument?
First, no investor wants to feel security concerns while investing his money. Sadly, gold and nominal currencies are always under the threat of thievery. Thanks to blockchain technology and extra security measures(Private key, cold wallet) Bitcoin has no risk of thievery while it is stored. When we consider all transactions of bitcoin are stored in blockchains and these registries cannot be changed, all of your investments are safe as long as you do not share your access information with anybody.
On the other hand, many gold investors can be mistreated because of gold being fake or its carat wrong. Yet Bitcoin cannot be produced and sold as fake. From this perspective, you know there is no fraud risk while investing in Bitcoin
While we investing, another important fact to us is its investment return. For an investment return, a price change is a must. So if a financial instrument's volatility is high, it creates new opportunities for a high investment return. From this perspective Bitcoin, compared to gold and other investment instruments has more investment opportunities. We can say that Bitcoin is an attractive investment instrument for investors who want to evaluate this opportunity. At the same time, we can say that bitcoin is a candidate to gain even more value in the future and to provide a relatively more investment return to its investor as it becomes more essential for the financial system and attracts more investors.
Another important feature of Bitcoin is it's being decentralized. It was seen that after the 2008 crisis how the financial system that existed could burn people's assets in an instant. Bitcoin, which emerged after this financial crisis, is not an investment instrument managed by an authority that can be negatively affected by the crisis and can be changed its value. The value of bitcoin is formed in a completely transparent manner under the market conditions.
Considering all these situations, Bitcoin is a very secure and good investment tool with its higher investment return and secure blockchain technology.