Posted by James Financial Services Inc

Bitcoin vs. Stocks: Where should you invest your money in 2020?

Bitcoin vs. Stocks: Where should you invest your money in 2020?

There has been an awakened interest among many investors looking for an alternative as there are slowing economies in most of the developed countries, fiat currencies worldwide take a beating due to the US-China Trade War. An alternative that is immune to the unpredictability of geopolitical and realities of the economy. 

You might be torn between bitcoin and traditional stocks. 

Investing in Cryptocurrencies

Apart from the largest cryptocurrencies, Ethereum, and Bitcoin, the returns from investing in cryptocurrency exchange vary greatly since it has over a thousand types of cryptocurrencies. 

Investing in firms that specialize in mining cryptocurrency, a company that is engaged in developing blockchain technology, or buying from someone who already has are some of the ways for you to get started investing. 

An alternative form of investment is what cryptocurrencies are generally considered.

Since the performance of an alternative investment is not affected by traditional asset classes like bonds and stocks, these are referred to as non-correlated assets. Setting more than 20% of an investment portfolio should be on constituted alternatives is a rule of thumb in investing. You should take note that you should be irrespective of whatever crypto you choose to invest in since cryptocurrencies are a form of alternative investments. 

What are the alternative cryptocurrencies that are worth considering?

Maker (MKR)

This runs on the Ethereum platform and is a smart contract platform. MKR tokens were developed to give holders voting rights on the system but have found acceptance and usage outside the platform and also to pay for transactions on the Maker system. 

Last January 2017 was its lowest price recorded at $21.06. The price has hit $1,773 a year later and since then has taken a dip of $451.55.

Therocoin (THR)

With a maximum supply of 1.11 million coins, this cryptocurrency token runs on the Waves platform. There has been a 10551.9% increase in its price over the past year. Your return on your initial modest investment by now, if you invested in $10 (THR) last year, would be $105, 519.

Ethereum (ETH)

Several other cryptocurrency markets and exchanges trade in use as a foundation and that is ETH. This is also a decentralized computing platform aside from being a cryptocurrency which is very unlike Bitcoin. For miners on the Ethereum network, it is the mode of payment. 

It was launched to the public at the rate of $0.42 and three months later, its lowest price was recorded in October 2015. It then had hit $1,432 by January 2018. During the period, ETH was just like most cryptocurrencies, it peaked during the period and has taken a dip since then to $185.43.

According to the Coin Market Cap, ETH has an ROI of 6,448.42%.

What are the reasons why you should invest in Bitcoin?

Bitcoin is the premium standard of all cryptocurrencies just like gold as the premium standard for all metals. Similar to what happened in December 2018 when the price crashed to $3,000, there is a lot of growing fear in the market about another dip in the market price. 

On the other hand, instead of selling, the top 10% who own 67% of bitcoin holdings have been lately on a buying spree.

Considering the fact that the top 10% own a larger volume of assets with a lot of risks attached though they may be the minority in number, in favor of buying and selling Bitcoin, their holding position should be strongly considered as an argument. 

When the price was $65.53, Bitcoin was at its lowest in July 2013, and at the price of $20.089 it peaked in December 2017. Bitcoin’s ROI is 7,371.71% and its price may be roughly half of that. At the time of writing, Bitcoin’s price is $8,321.70.

Buying with a short-term goal of hitting $13,000 and selling is not a bad idea at all when you base on the ongoing recurrent Bitcoin prices and dip in the crypto market. 

Investing in Bitcoin?

If you are not a risk-averse investor and don’t mind the patient’s investment, then Bitcoin Exchange is good for you as an investor. 

Looking at things from a long-term perspective is the key with the Bitcoin Stock Market and other cryptocurrency stocks instead of letting price rises and dips affect your focus. 

In fact, cryptocurrencies are heading in one direction only, that’s UP.

James Financial Services Inc
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