Cryptocurrencies are for the 2020s what the Internet was for the 2000s. With the digital currencies reaching all-time highs and companies finally accepting Bitcoins and Altcoins as payments, people are rushing to invest in crypto assets.
- With a surge of almost 500 percent, bitcoin is at an all-time high but will it able to sustain its boom? Experts seem to think so.
- After Elon Musk’s Tesla started accepting ‘Bitcoins’, PayPal follows suit allowing users to complete their payment at checkout with bitcoin and similar cryptocurrencies.
- The cryptocurrency exchange platform, Coinbase makes an astounding debut at Nasdaq breaking records and driving bitcoin’s price upto 122 percent.
- A guide for beginners joining the party to invest in cryptocurrencies and bitcoins.
Cryptocurrencies, led by Bitcoin and Ethereum, have seen an impressive surge in the last year. This surge was maintained at a quite high rate during the first months of 2021 before it lost its momentum in March. Bitcoin price has gone up to almost 500 percent since the beginning of its surge in October, only to an all-time high of $60,000 per bitcoin in March. Though its unbeatable surge took a hit in March, the boom is not going anywhere, anytime soon, according to the experts.
Though experts predict the loss of surge in March to continue even this month, the bitcoin investors and traders are enthusiastic about this cryptocurrency even now. According to an interview with Forbes, the Chief executive of the Isle of Man-based bitcoin and cryptocurrency exchange CoinCorner, Danny Scott, the month of April might also bring a positive change for bitcoin this time.You will find more infographics at Statista
Watch: Will the Bitcoin boom sustain this time?
Bitcoin in Business
Business giants such as Elon Musk’s Tesla and Dan Morehead’s Pantera Capital are two of the many companies that have invested in bitcoins. PayPal has also made an announcement stating their willingness to allow users to complete their payment at checkout with bitcoin and similar cryptocurrencies.
According to a report by CNBC, BNY Mellon (Bank of New York Mellon), the oldest bank in the United States, has announced its interest in financing bitcoin and similar cryptocurrencies in February. While talking about their decision of dealing with digital currencies, BNY Mellon’s CEO Roman Regelman revealed, the “growing client demand for digital assets, maturity of advanced solutions” and better regulations have presented an excellent opportunity for them to “extend our current service offerings to this emerging field.”
The renowned automobile car manufacturer, Tesla has announced their $1.5 billion in bitcoins that have resulted in a massive surge in the following days. According to their new policy, buyers can also buy their Tesla cars using bitcoins from now on, following the current laws and on a limited basis initially.
With the impressive surge of cryptocurrencies, investors are showing interest in investing in bitcoins. Buying bitcoin is also easier than other investment methods, making this easily adoptable by the investors. Coinbase (COIN), the first public-traded cryptocurrency exchange, brings attention to the price of bitcoin and cryptocurrencies through its initial public offering. According to Coindesk.com, the price of bitcoin reached up to 122% last Tuesday.
There are no ETFs or mutual funds to help you to act on the bitcoin surge regularly. To invest in this cryptocurrency and rip the right benefits from the surge, one needs to follow a few steps cautiously. Here is a guide to help you with your bitcoin investment.
Invest in Trusts that Holds Bitcoins
With no trustable ETFs or Mutual Funds, trusts holding Bitcoins can be helpful for investments in this cryptocurrency. GBTC is a fund that holds its shares with bitcoin and also allows the investors direct exposure to the bitcoin price trends.
GBTC is a private placement, similar to an ETF. One needs to assure some of the wealth standards to be able to invest in bitcoin. As an example, an investor will only be able to buy GBTC with Morgan Stanley, if they have at least $2 million worth of investments with the firm. As shares can trade at a discount, the price of GTBC shares does not follow bitcoin’s value particularly.
Invest Directly Through Applications like Coinbase and Coinswitch
Bitcoin enthusiasts can invest in this cryptocurrency easily through applications. One can use the Coinbase exchange to invest in bitcoin or buy and sell this cryptocurrency through PayPal, Robinhood, or Square’s Cash App. You can also buy fractional shares of bitcoin through Coinbase.
Dealing with bitcoin through PayPal will not allow you to take personal ownership of your digital asset, which you can have if investing through Cash App.
Use Hedge Funds to Play with the Bitcoin Price Directly
Opulent investors can also work with the bitcoin surge through hedge funds directly. To be able to invest through hedge funds, one needs to register a minimum investment higher than the requirements of regular ETFs or mutual funds. Investors will be required to have a net worth of more than $1 million excluding their annual income of more than $200,000 for single investors and $300,000 for married joint filers.
Bitcoin and similar cryptocurrencies such as Dogecoin are gaining popularity in the market and among the investors with each passing day. Big business houses are also coming into the picture with big investments, claiming their stakes in this market. In the digital world of the 21st-century, this can surely be a sign of positive change.
Bet on Emerging Markets
Apart from the familiar market of the US and UK, these digital currencies are also stepping into less explored market places like India. In its last statement in March, Coinbase has announced its launch in India and its plan of hiring tech and product experts for the same.
With the expansion of the cryptocurrency market, it is also opening scope for new business modules. We can surely expect to see a different and completely new industry blooming within a few years, just as we are seeing now around AI technology.