Amazon isn’t the only tech giant branching out into cryptocurrencies; rumors are circulating that Apple will use some of its large cash reserves to invest in bitcoin.
Cryptocurrency
is a good investment if you want to gain direct exposure to demand for digital currency, while a safer but potentially less lucrative alternative is to buy shares of companies with exposure to cryptocurrency. In short, Bitcoin has value “because people think so,” says Bryan Routledge, an associate professor of finance at Carnegie Mellon University’s Tepper School of Business. The FCA has also warned investors to be wary of companies that promise high returns on cryptocurrencies.
But until then, Subramaniam recommends reducing risk by keeping cryptocurrency holdings at a lower proportion of its investments. Both individual investors and companies seek to gain direct exposure to cryptocurrency, considering it safe enough to invest large sums of money. Owning bitcoins at this brokerage is as simple as creating an account, verifying your identity, and buying your crypto. With the encouraging and affectionate rise in the current price in recent months, investing in Bitcoin today might not be the wisest decision.
Bitcoin’s price fluctuates a lot and it’s impossible to tell if it will continue to rise in value or fall into darkness, so it’s smart to allocate only a small percentage of your overall assets to Bitcoin. Buying the coins (or the unit of a currency) on a cryptocurrency exchange is the most common way to invest in bitcoin. Many investors are looking for alternative assets to protect against inflation, as governments are now creating more money than ever in the wake of the pandemic. Because the notion of a virtual currency is still fresh compared to traditional investments, the currency’s value has witnessed huge fluctuations in price during its short life.
Similarly, cryptocurrency investors could invest in Ethereum, which has a native currency called ether. Because the supply of bitcoins is limited and controlled by computer code, Pompliano argues that he is the greatest protector of purchasing power. In addition to this, there are more Bitcoin accumulators on the market, blocking the actual use of Bitcoin. The excitement of riches or ruin leaves some investors wary, but others want to pursue the opportunity to make massive profits by investing in bitcoin.
