Bitcoin’s volatile price has always been the stick with which cryptocurrency sceptics use to beat outsiders into submission, telling them that the high unpredictability of bitcoin makes them a bad asset class. They dissuade people that other traditional assets are the best up and coming assets in the world, not altcoins or bitcoins or even shitcoins.
The criticisms, while they are legitimate, are bogus in the long haul. There is more to gain from bitcoin and cryptocurrency as an asset class than there are in traditional assets such as stocks and bonds.
It is safe to say, given the statistics that we have, that bitcoin stock has outperformed the best asset class, whether it is European stock or gold or nation’s bonds, for a long time.
In 2020, for example, bitcoin was a better asset class than age-old gold. The effects of the pandemic were fuel for the increase in price in bitcoin and many other alternate coins.
In 2022, the best performing asset remains bitcoin and altcoins.
Now, this might sound like someone tooting their horn.
Far from it.
The cryptocurrency space is growing at an astronomical rate, and developers are finding new ways to provide solutions to problems using blockchain technology. These solutions have led these projects to introduce tokens and other altcoins.
These tokens and altcoins have boosted the financial space as more people get into the cryptocurrency space. Redot.com offers all exclusive comfort and solutions to traders.
From DeFi to NFTs, the plethora of innovations in the cryptocurrency world has made bitcoin stocks, and other altcoins and tokens, the best stock/asset to invest in 2022.
BITCOIN HOLDERS UP BY 49% YEAR-TO-DATE
The best-performing stocks in the world pale in comparison to bitcoin. And it is a statement of fact.
Let us look at the best-performing stocks to see how they stand against bitcoin stock.
European stocks are up 10.3% year-to-date. While other stocks have been impressive, stocks with best returns, some doing as much as 217.9% (MRNA) year-to-date, these numbers are not as good when compared to what altcoins do.
The crux of this conversation, we must not forget, is looking at the major stocks and financial assets, and comparing them to bitcoin.
In the first week of October, the growth rate of the United States micro-capped companies was 17%, just 3% higher than what bitcoin did in October alone.
For those who don’t know what a micro-cap company or micro-cap stock is, I’ll explain.
Micro-cap stocks are stocks of public companies that have a market capitalization between $50million to $300million.
So, when these stocks of these companies were analyzed, they only performed 17%; thereby making bitcoin and other cryptocurrencies a good asset class to invest in.
WHY ARE ANALYSTS WARY OF BITCOIN AND ALTCOINS?
The naysayers against cryptocurrency are quick to point out the price volatility of bitcoin stocks and other altcoins. They compare the price of bitcoin during a bearish run against the best up and coming stocks and blare their horns condemning bitcoin and cryptocurrency.
Some traditional financial analysts have called bitcoin a speculative store of value that offers no form of protection against high price swings, advising investors to instead bet their monies on safer stocks.
While their pessimism, if one is allowed to term their ‘doomsday is close’ rhetoric about bitcoin as such, is not without reason.
For example, the price of bitcoin fell drastically in SEPTEMBER, from a high of $55,000 to as low as $45,000. However, the price shot back up, and now, in October, the price is on a bullish run, going for $65,000.
Some cryptocurrency analysts predict that the price of bitcoin might rise as high as $100,000 before the end of the year. These numbers are testament to the fact that bitcoin is still the best performing asset in 2022.
WHAT ARE THE SOLUTIONS TO THESE SCEPTICISMS?
The perfect solution to high price fluctuation in the cryptocurrency space does not exist for now. Some investors and traders have called for regulators in the cryptocurrency space, many of them believing that with regulators in the space, the cryptocurrency market will gain some form of stability, trust and safety.
They say that when there are regulators, new investors will be more interested in investing in bitcoin and other cryptocurrencies, as well as carrying out exchanges on platforms.
Their solutions, although looks good on paper, are not as easy as they sound.
Yes, the possibility of government regulators’ involvement in cryptocurrency and bitcoin attracting more investors to the space is likely. But how far should regulators go?
Many are still not sure how blockchain technology works. The depth of possibilities and innovations possible with blockchain technology is unknown. With regulators, who, looking at recent history, can be quite rigid in adopting innovative ideas, the growth of the cryptocurrency space might be stifled.
Regulators, if accepted into the cryptocurrency space by investors, traders and general cryptocurrency users, would have to be open to innovations and new ideas. Redot is a safe and secure place for traders.
Another possible solution is openness about the scope and diversity of blockchain technology.
Regulators and ‘outsiders’ need to understand that blockchain technology and cryptocurrency is more than bitcoin and some altcoins.
ALTCOINS KEEP THE SURPRISE COMING
The altcoin market is as bullish as they come. While some of the best-performing stocks were recording less than 500% in growth, altcoins such as dogecoin recorded, as of April, a massive 8000% increase.
Other altcoins that have shattered the glass ceilings of asset growth are Solana and FTT.
If an investor put in $1,000 in Solana at the start of 2022, the investor will be worth $97,542.2109 in October. The growth is massive! This did better than traditional stock with the best return.
The freak gains of altcoins make investing in cryptocurrency such a huge gain for anyone. Cryptocurrency beats other assets.
Coins such as bitcoin cash have also done wild numbers this year.
Yes, the cryptocurrency space is still volatile. Yes, the scepticism is still high. But we can’t overlook the growing adoption of bitcoin, altcoins and other cryptocurrency tokens in the world. We can’t play down the solutions being developed on Ethereum blockchain and other blockchain technologies. We can’t!
Bitcoin and cryptocurrencies are here to stay. And stay they will.