There is no doubt that 2020 has been a fantastic year for Bitcoins and other cryptocurrencies. Despite a bullish outlook for 2018 and 2019, crypto prices have rallied significantly in 2020.
Having broken the psychological $10,000 barrier, the question on everyone’s mind is - would now be the right time to invest in Bitcoins and other cryptos?
For some, Bitcoin’s successful performance post-halving only strengthens the digital currency’s position as the cryptocurrency to own.
On the other hand, others have sworn off Bitcoin proclaiming that speculative investments are not the way forward and instead calling for a return to the fundamentals.
However, you see it, it’s impossible to deny the fact that cryptocurrencies have been a remarkably resilient investment. Bitcoin in particular has been able to consistently bounce back despite several high-profile crashes.
If you’ve been asking yourself if Bitcoins have been the right investment for you, take a look at 5 reasons why 2020 is the year that you should invest in cryptocurrencies.
1. Rising rates of adoption
With the acceptance of Bitcoin by governments and institutional investors, we can expect there to be a rise in the use of Bitcoin and other cryptocurrencies.
Even prior to this, major corporations such as Microsoft and Dell have begun to accept cryptocurrency payments (Bitcoin in particular). Thanks to an increase in payment service providers and the ease in which payments can be made, all of this should come as no surprise.
Now in 2020 with an uncertain economic outlook and a push towards cashless payments, cryptocurrency adoption rates are only set to increase. This year also saw the rise of new businesses related with this industry, like Tezro for example. Tezro is a message app that makes the life of Bitcoin and crypto users much easier.
Thus, with a trend pointing towards increased crypto adoption, it would be prudent to snap up some digital currencies in 2020.
2. Increased global uncertainty
2020 has been full of surprises thus far. Civil unrest in the United States, a deadly pandemic and a crippled global economy has set the stage for massive uncertainty.
Even as governments desperately seek to keep their economies afloat with massive cash injections, investors are still scrambling to hedge the value of their assets. As can be seen, safe haven assets are very much in demand.
Gold; traditionally seen as a safe investment, has hit an all-time high in 2020 amidst fears of the corona virus’s impact on the global economy.
Bitcoin being an unregulated digital currency has also been dubbed as a form of virtual gold by many. Being unregulated and unaffected by geopolitical and economic concerns, Bitcoin and other cryptocurrencies are indeed a popular choice for investors.
Hence if you’re in the market for a safe haven asset, Bitcoin is set to be a decent investment. Besides that, it is also one of the most-used digital currencies in the world which makes it easily transferable.
3. The rise of fintech
Fintech has proven itself to be a major disruptor in the finance industry. Instead of waiting in line at the bank, fintech has allowed dozens of processes to be performed with a smart device.
All of this has revolutionized the way we think about banking and financial services. Due to the nature of fintech there is bound to be some overlap with cryptocurrencies. This can be seen in the use of blockchain technologies in a new generation of fintech solutions.
For example, Singapore has quickly embraced Ethereum and its usage in smart contracts. As fintech solutions become a part of the mainstream, the line between fintech and crypto technology will be increasingly blurred.
Advances in technology and the prospect of a global economy turned on its head will undoubtedly set the stage for a new crypto revolution. Thus making it prudent for the savvy investor to begin snapping up cryptocurrencies.