Cryptocurrencies have turned out to be a great success; for those whose investments have generated results, it makes them feel more attached to trading Bitcoin and the various digital currencies.
Like any new financial instrument, it will always be the subject of criticism and doubts regarding its financial capacity, which is why Bitcoin has found it difficult to position itself in a financial market controlled by third parties.
Even though financial markets tend to adhere to the supply and demand movements of various assets, many factors cause trends to change suddenly.
Bitcoin has been considered an element that revolutionized the financial market to the point that the doors to a new digital ecosystem were opened because of the technology that supports Bitcoin operations and is known as Blockchain.
What attracts Bitcoin investors?
Bitcoin has struggled hard since its creation to stay in a market that, although traditional assets lead it, is beginning to adapt to the benefits offered by technology.
If we talk about the aspects that make investors lose their fear of investing and taking new financial positions in a relatively new market and which for many is characterized by high volatility, then here are some points in favor of this technological and economic invention.
The operations are carried out quickly, without having a limit in terms of the amount to be transferred or the place; for Bitcoin, there are no borders of time or space, and operations can take minutes.
The costs per operation are meager; even in some functions, no additional amount is paid, in addition to the fact that they are decentralized digital currencies, something that, for many, is very striking.
The approval of an intermediary is optional for the operations to be carried out, much less can the profit from cryptocurrency transactions.
No global policies control them, and they’re one of the causes of so many doubts among future users since it is incredible that it is owned and manipulated by the user.
Cryptocurrency holders act as their banking entities; they are the ones who control all the operations that are carried out with their capital.
Its operating system works 24 hours a day, seven days a week; no financial strategy has this peculiar feature.
Although many have pointed out the transparency of cryptographic operations since it has been involved in money laundering or illegal operations, processes can be traced since Bitcoin addresses are unique.
Accessibility to information is free and open, which allows anyone to know its strengths to the point of being able to audit it.
All operations are approved under the consensus of its users; a bitcoin does not move if its participants do not support it globally.
On the other hand, there is limited emission; there will not be more than 21 million Bitcoin units; it is a local currency. Moreover, unlike Fiat currencies, more and more coins are printed, which becomes a temporary solution to inflation.
Anyone can access the Blockchain, but users’ anonymity is still maintained.
Panic Moments Attach Users to Bitcoin
Although digital currencies are going through a bearish crisis that has not been able to be controlled, nothing prevents users from joining this financial protocol.
The mixed feelings after the million-dollar losses that occurred during 2022 have not been easy to handle, but two scenarios are proposed in the face of a possible change in trend.
The first scenario is a corrective phase after having experienced bullish trends during 2021 that led it to all-time highs several times; the bearish trend stabilizes the value and then returns to an upward trend where its expected maximum is $100,000. Per unit.
The second scenario that is less desired is the case where the trend changes to a temporary high that leads Bitcoin to a more robust low.
In any of the scenarios, the users who win are always those who keep their units in storage since when the market stabilizes; they will be able to generate good profits.
There are more positive aspects that these digital currencies have than negative aspects, which is why their users remain to await the changes to come.
Bitcoin is not going through an easy phase, but its characteristics will allow it to engage more strongly with the financial market.