In wake of the reigning uncertainty of pandemic, now it’s time to rethink your investment. The traditional investment options such as stocks, gold, and real estate in midst of this gloom don’t seem to offer promising returns. If you are not satisfied with what traditional investment like gold is offering you, cryptocurrency is worth considering.
Bitcoin and other cryptocurrencies are one of the best investment avenues to be considered in times of global economic downturns. Being immune to external market conditions, the digital assets offer you consistent long-term results.
In the covid-19 period, bitcoin price witnessed a new high every month, emerging as a serious challenger to gold. According to the latest trends, conversion of 1 Btc to Inr increased by over ₨1,199,459.40 (approximately) in a year. In addition to this, even other cryptocurrencies have performed well.
If you are still not convinced of why the cryptocurrency is better than traditional options like gold, here are the reasons in support.
Table of Contents
#1. It is going to be the mainstream currency in the future :
The traditional financial system is fragile. With its collapse, your bank accounts will be left worthless. Although this is a worst-case scenario, still its possibility cannot be ruled out. It is always better to be prepared in advance. More and more people are turning to crypto assets in need of a viable investment option. Furthermore, being more secure and credible the digital currency is believed to gain dominance as the main currency of the future.
#2. Gold and other traditional investments are difficult to liquidate in bad market conditions:
Traditional investments are static, thus, they are difficult to cash out. And when in an emergency, you may have to sell them at a lower price, which even needs substantial time. Furthermore, when it comes to physical gold, the rates may differ from time to time.
In comparison to this, cryptocurrency is much easier to liquidate. Let’s say you are investing in Bitcoin itself. You can exchange bitcoin to inr, or any other cryptocurrency to its Indian rupee equivalent anytime from anywhere, even when the market conditions are not satisfactory.
#3. Cryptocurrencies protect you against market crashes:
Crypto markets are independent of traditional market conditions. Be it inflation, recession, or stock market downfall – these are not affected by external economic conditions. In such scenarios, crypto investments offer you a quick fix for your financial problems.
This implies while your traditional investments will be impacted by market volatility your crypto holding will remain secure.
#4. Cryptocurrencies are easily transferable:
Cryptocurrencies being decentralized aren’t restricted to any specific region. They are borderless and support easy transfers globally. All transactions and settlements in blockchain are peer-to-peer. There is no third-party involvement.
In contrast to this, transfer of traditional investment options like gold or property is not possible in such an easy way. Plus, they involve a lot of paperwork and formalities to be completed.
With so many benefits, crypto assets have a good potential to become a reliable long-term investment option.