Bitcoin: highly volatile or highly profitable?

Even though we live in a digital age, many individuals still do not understand if they should invest in cryptocurrencies or not. As you are aware, many people are under the impression that the only way to lose money with cryptocurrencies is to invest in them, and that there is no possibility of profiting from them. There are multiple ways in which you can know about basic currency units and how crypto is mined. The deliberations will allow you to get an idea about which particular time will be the best to invest in Bit Index AI

  • On the other side, there are a large number of corporate brands and CEOs that have no qualms about quickly investing their money in Bitcoin without giving it a second thought. 
  • So, in this post, we will explain all there is to know about Bitcoin, and by the time you get to the conclusion, you will have all the answers to your questions regarding whether or not Bitcoin is lucrative. Let’s begin with the things that really matter, which are the elements that influence the price of bitcoin.

Consider the factors of Bitcoin price.

Bitcoin is not like any ordinary currency issued by the government or bank. And rather, this decentralized digital currency price is entailed by many factors like economic growth, inflation rates, monetary tools, and policies. 

Is Bitcoin highly volatile?

If you ask, is there volatility happening in Bitcoin? Then the answer is yes. There is volatility exists in this market. Potential customers who trade here more often are fully familiarized with this fact. Volatility mainly occurs due to the often changes in Bitcoin value. But some hesitant people are fully scared about the volatility of Bitcoin. However, many positive people reluctantly invest in Bitcoin and take this volatility sportingly. 

Are there any benefits of volatility in Bitcoin?

The volatility does not happen in this market; it can also occur in the financial market due to fluctuations in asset prices.

People across the world know Bitcoin Today. And the number of users who trade in this market is increasing daily, and the value of Bitcoin prices also. 

If you took a survey in the Bitcoin market in 2018, you get to know how the prices are getting higher and higher every day. And the traders who trade in this market are extremely profitable for their investment in this market. Nowadays, the safety of your investment is higher than earlier, and the volatility rate comes to 10% on average every day. So the risk of investing here is getting less with time. Virtual currencies are there, and there are also the central bank currencies, and crypto that work in accordance with a certain protocol. 

Is Bitcoin profitable despite the volatility? 

As mentioned earlier, investing in Bitcoin has been increasing since the year 2018. Today the price of bitcoin is approx $43 739.10, and if you see the graph, then back in 2018, the price was $6000. The prices are always fluctuating, but mostly it’s getting higher. 

There are indeed risk factors in this market, but the fact that cannot deny is its profit factor, which is higher than the risk. If you can take these risks sportingly, you can enjoy the extreme profit. Now, if you see it as a long-term investment, you are never disappointed. As the prices increase over time, if you invest today, it will be a great investment in your future. 

Now, if you check the profitability graph in the year 2020, you can see that at that pandemic year’s beginning, the price of Bitcoin was $20,000, and in the middle of 2020, it rose to $40000 within this short period. 

And as the value increased so rapidly till the end of that year, it reached $65,000. But as talk about volatility, in this following year, due to inflation, the prices are drop suddenly by $43,000. 

Final words 

Bitcoin is becoming one of the best ideas for long-term investment. If you keep aside the risk factors and just count on the profitability, you can see the advantages of Bitcoin investment. It is always mandatory to check with the right professional in this regard, and then start the process of investment. Volatility occurs in any kind of financial investment so as in Bitcoin, but the risk is a little bigger here. So, you can trust and use Bitcoin Prime.