In the early stages, bitcoin faced an existential crisis because the institution claimed that bitcoin was a worthless asset. Still, as bitcoin started to take over other financial assets, the entire game changed. You may visit the Immediate Bitcoin App if you don’t want to spend hours making bitcoin trading strategies, as you here can find all the tools to generate a good trading strategy. Fintech giants like PayPal have been supporting and accepting bitcoin payments since 2014. The platform now incurs a feature of buying bitcoin with fiat currencies. Institutions seemed to be reinvesting a lot of money in BTC, and there are several valid reasons behind this progression.
Bitcoin is the best hedge against inflation
Bitcoin is a fundamental hedgerow against the rising money supply and market volatility. In addition, the rate of return on the bitcoin network is always better than other financial products like equities, real estate, and silver and gold. Bitcoin has a tremendous potential to outshine the fiat currencies and altcoins in terms of ROI, which is why their investment strategies revolve around bitcoin.
The skyrocketing inflation is a crucial challenge for government authority as it significantly impacts the central economy. Many financial powers performed tactics to mitigate the percentage of inflation, but merely bitcoin has succeeded in the last few years.
The rate of return on bitcoin has been more than 1000 percent in 2017 alone! Compared with 10 percent from gold and 2 percent from US stocks. Now, institutions have placed themselves at the front line eyeing high-earning potentials with high returns. Moreover, the demand for bitcoins is increasing owing to its limited supply factor.
Institutions are looking to diversify their portfolio
Institutions are finding bitcoin investment as an alternative to diversify their portfolio. The cryptocurrency industry is growing steadily, and banks and financial institutes, because of the new rising player called bitcoin, have started repurchasing BTC. As a result, institutions have changed their perspective towards bitcoin from bearish to bullish as they find bitcoin as a potential fund.
The mere fundamental solution to inflation
Bitcoin is the most used currency, so its demand has increased rapidly. The popularity of bitcoin will continue rising because it has been a much better option than other traditional investment vehicles like bonds and stocks. Gold has good returns but lacks liquidity; this is where bitcoin comes into the picture and can function as an efficient hedge for your portfolio.
Institutions can use bitcoin for payments
The more people use bitcoin, the faster its value will go up. In addition, the massive adoption of bitcoin as a payment system will provide a security boost to its value. Therefore, institutions are more encouraged to buy bitcoins since they can use them for daily transactions without facing any problems.
Nowadays, bitcoin is one of the leading payment infrastructures across the world. Institutions appreciate that the lower transaction fee and speed of receiving funds make it an efficient financial product for them to invest in.
Big Institutions that have invested in bitcoin
- IBM
- Intel
- Cisco Systems
- Microsoft
- Nasdaq
- Goldman-Sachs
All these corporations have invested in crypto because they see a huge potential in it and have made their investments directly in Bitcoin. It is why the trend moved from bearish to bullish throughout 2021. All these significant corporations are increasing the pace at which they invest in blockchain technology.
Bitcoin is a profitable investment
With an average return of 1000% every year, bitcoins have been on the rise with a lot of potentials, and everyone expected it to go up even more. Still, due to high volatility, its value kept decreasing in 2014 and 2-15, which affected the investor’s confidence in bitcoin. Now, the rate of bitcoin has gone up again, giving investors a good vibe regarding this digital currency.
The volume of bitcoin investment had risen by more than 50 percent this year compared to 2016, when it was around 700 percent. It shows that bitcoin is a frequent trading instrument among investors. Bitcoin has been over 1000% ROI in 2017 alone! Compared with 10% from gold and 2% from US stocks. Bitcoin has become a profitable investment, as it has been on the rise with a lot of potentials.