Introduction

From social media to search engines and television studios, there is just one thing on everyone’s mind in the world of finance and investment- Bitcoins!

The cryptocurrency is not only registering one of its strongest performances ever but is also winning acceptance from institutional investors on Wall Street. 

It would not be wrong to say that we are entering a golden period in terms of digital currencies and high growth margins. 

Bitcoin has been touted as the single biggest wealth growth engine of our times. Something which teenage millionaires will attest to. It has also led to catastrophic falls, which have wiped off billions in losses. 

Bitcoin: The Financial Asset Everyone wants to Invest in 2020

The records of Bitcoin in 2020 are available for everyone to see. In terms of growths, returns, and potential, Bitcoin has outperformed any other investment comfortably. 

It has even left Gold behind in terms of being a preferred option among investors who are looking at credible hedging options against inflation. This speaks volumes about a financial asset, which had been snubbed as being some kind of a hoax or a scam by the rich and famous. 

Every time someone or the other has proclaimed Bitcoin to fail, it has bounced back stronger. In 2021, the doubts surrounding the viability of Bitcoin has been put to rest. 

The question has now shifted to what should be the percentage of investments in Bitcoin, investing strategies, and choosing trading platforms or exchanges. Predictions in terms of the growth range from Bitcoin hitting $100K to $300K by end-December 2020. 

Experts from Citibank to Morgan Stanley are betting big on Crypto and are offering specialized Bitcoin investing services to their wealthy clientele. 

Arguments in Favour of Investing in Bitcoins in 2021

In this section, we are going to list down some arguments in favor of investing in Bitcoins in 2021- 

• There are a ton of positive government regulations, which are going to be announced in January 2021. This is going to have a positive impact on the prices of Bitcoin in the near future. 

• The entry of PayPal into the middle is a positive sign, which shows widespread industry acceptance. If private capital is endorsing Bitcoins, governments cannot afford to ignore the same anymore. 

• Bitcoin is still affordable in many ways for a lot of people. However, when it breaches the $100K mark, it is going to be beyond the reach and budget of many. Hence, investing in early 2021 is a better option. 

• In 2021, merchants and other businesses are looking to accept Bitcoins on a never-before scale. This means that in addition to its store of value proposition, the currency factor is also going to plan a grander role. 

Arguments Against Investing in Bitcoins in 2021

In this section, we are going to list down some arguments against investing in Bitcoins in 2021- 

• Bitcoin along with other cryptocurrencies is still very volatile in nature. The last year saw Bitcoin fall to $3000 USD in March, while moving towards $19000 USD in 2020 in December. 

• The legal status of Bitcoins is not yet very established. Unlike stocks, the US government has not accorded completely legal status to Bitcoins. It has not called it unlawful or banned it. However, the legality is still a question. 

• Other Cryptocurrencies, including CBDCs and Stablecoins, are gaining traction in different parts of the world. Facebook’s new Diem, Digital Dollar, and the Digital Yuan might be enough to replace Bitcoins in the near future. 

• Frauds and scams surrounding Bitcoins seem to be on the rise. An individual who is non-technical in nature will require wallets, maintain private keys, and possess the advanced technical knowledge to survive and stay safe in the industry. 

The Final Word

If you are losing the latest https://bigmoneyrush.io, on an exchange or trading platform, you do not have to worry about security risks. However, it is important that you think long and hard before you make a decision on whether to invest or not invest in Bitcoins.