Dec 19, · Why I Invested in Bitcoin and Ethereum While everyone seems fixated just on supply, the demand for these two cryptocurrencies makes them stand out from the thousands of other ute-strohner.de: Jon Quast. Additionally, stock markets have been around in the U.S. since the late s. 7 Bitcoin is, on the other hand, a relatively new asset originating in the late s. The history just isn’t there for Bitcoin if you like a long-term track record. Nov 21, · Just like the stock market is volatile, bitcoin investors should expect big ups and downs in the future. Yet investors looking for an alternative to the stock market might not get everything they Author: Dan Caplinger.
Bitcoin or stock marketHere's Why Bitcoin Is Safer Than Stock Market, Novogratz Explains
The higher bitcoin goes, the more convinced I am that it's one of the most dangerous investments. Each of the major buy theses surrounding bitcoin can be easily debunked -- as follows.
One predominant catalyst for bitcoin is the perception of scarcity. It currently has Over time, the remaining 2. With only so many tokens to go around fractions of a token can be bought and sold , the buy thesis suggests that this scarcity makes bitcoin an excellent investment.
The problem is that bitcoin lacks genuine scarcity. Its perceived cap of 21 million tokens exists because of computer code. Last I checked, code can always be erased and rewritten. While it's unlikely that a community consensus would be reached to increase the circulating supply of bitcoin, the possibility of this happening isn't zero.
By comparison, a precious metal like gold has a hard supply limit. We can't use alchemy to make more gold. The only gold that's available is what's been mined or is still underground. When the only parameter of scarcity is written computer code, that's not true scarcity. Another buy thesis of bulls is that bitcoin's utility is growing by the day. More businesses are accepting digital tokens for payment, and a broader swath of people are buying bitcoin tokens for the first time.
According to financial services company Fundera, around 2, U. More than a dozen multinational companies also accept bitcoin. Slam-dunk proof of increasing utility, right? Not so fast. There are not nearly enough tokens in existence to drive widespread adoption, based on these figures. As one additional note, there are about Removing these nonemployer businesses leaves 7. Census Bureau in Table of Contents. Share on facebook.
Share on twitter. Share on reddit. Share on linkedin. Share on email. Share on whatsapp. Requires a lot of patience while investing in the stock markets as it can take years to make a considerable amount of profit on your investment. While performing traditional investments, one requires formal accreditations. It is limited to qualified institutional buyers and invites high trading fees. Bitcoins are global in nature as they are accepted in over countries worldwide.
These are easily transferable with low transaction fees. The use of bitcoins by more and more people is helpful in generating a firm rise in the demand for Bitcoins. The risk factor is the same in both the investments but the only difference is that the stock market is safe in terms of government backing. Because of the volatile nature of the bitcoin system there are some concerns as it is purely based on demand and supply. It takes a considerable amount of investment in the form of trading charges, taxes etc in stock markets.
Trading on the stock is not at all easy, one has to find a registered broker for creating a demat account and lose some amount as a brokerage charge. At its core, Square is still a payment processing business. It has grown dramatically over its decade-long history. In addition, Square has built a nice business lending operation in the form of Square Capital, which has originated billions of dollars in small business loans.
It does this at a much lower credit risk than its peers, since its loans are based on merchants' sales. Square received approval for a banking charter of its own in , and the company plans to launch its own industrial bank next year. Finally, there's the Cash App, which offers so much more than bitcoin. The app provides person-to-person payments, the ability to buy and sell stocks, and debit cards.
Cash App's user base has quadrupled over the past three years. More than 30 million people actively use the platform, which is still in the relatively early stages of monetization. In a nutshell, Square's growth story has been impressive so far, but it could still have more room to grow.
That's true with or without bitcoin. In the corporate world, there are few people who believe in the long-term potential of bitcoin more than Square CEO Jack Dorsey. There's no denying that Square's non-crypto business growth is extremely impressive, to say the least. If you believe in the long-term potential of bitcoin as an asset, but don't necessarily want your investment results to be only dependent on bitcoin, Square could be a smart way to go.