Now you are wondering if Bitcoin is better for long term investment As Bitcoins are very volatile, transacting it makes it a difficult job for traders. Bitcoin’s price changes every second, let alone every minute. This makes a new investor worry about his/her investment. As a bitcoin trader, I would personally invest long term in Bitcoins, visit for more details here to create your trading account. Investment is a major part of your financial goals; whether you want to invest in the short term or long term depends on your goals. You may wish to choose long term if you are sure that it will help you grow financially in the distant future.
Bitcoins: Suitable for Long term or Short term investment?
According to a report by Binance, most investors feel that investing in Bitcoins is a long term game. According to that report, most Bitcoin investors invest in Bitcoins by selling off their disposable assets. They do not invest with the money they get by selling their important assets or going into debt.
4 Reasons why Bitcoin is a long term investment asset
There are several reasons why Bitcoin is best for long term investment and unsuitable for short term investment, but keeping in mind the length of the article I am going to mention only the four most important reasons.
High Volatility
Bitcoins are very volatile, which makes them very tough for transacting. I mean, just a few minutes ago, the price was $33,750, and now it has dropped to $33,306. Since it is so volatile, purchasing goods and services with Bitcoins is not ideal. No seller would want to take a currency that swings every second. Volatility has very little to do when long term investment is considered. The prices of Bitcoins often make records. You can sell your Bitcoins and earn plenty when it has a bull run.
Illegal in most countries
Bitcoin is still illegal in most parts of the world. Even in countries where Bitcoins are legal, the use is highly controlled. For instance, Bitcoin is considered property in the United States. The IRS imposes hefty property taxes on those who hold Bitcoins. In China, Bitcoins holding is legal, but the use is not legal. All these factors make Bitcoins appropriate for long term investment. Bitcoin is banned in Russia. Even though Bitcoins have way too many uses to facilitate the payment system, it is not widely accepted.
Blockchain is not a mainstream technology
The third reason why Bitcoin is not suitable for short term investment is that it is based on Blockchain technology. Blockchain is the foundation of crypto Blockchain technology and is certainly one of the most sought-after technologies globally. But it is only on paper. It will take years to be implemented in the industries and a few years more for it to be accepted by the common people. Furthermore, implementing Blockchain technology is very costly. So it might not be feasible for many businesses to implement Blockchain in the foreseeable future.
Hub of illegal activities
Since many illegal activities are conducted with the use of Bitcoins, making it an alternative to fiat currencies and appropriate for short time investment can be quite a risky job. All these make it appropriate for Long term investment but not as an alternative to fiat currencies or short term investment.
Final Thoughts
There you go; I hope now you have got the idea whether or not Bitcoin is suitable for long term investment or short term investment. Since illegal activities like child trafficking, trade of illegal drugs and weapons are done using Bitcoins, the Government will not allow it as a lucrative short term investment opportunity.
