POSITIVE ASPECTS OF BITCOIN POSITION IT AMONG THE FINANCIAL OPTIMISTS

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Cryptocurrencies have turned out to be a great success for those whose investments have generated results; it is what makes them feel more and more attached to Bitcoin and the various digital currencies.

Like any new financial instrument, it will always be subject to criticism and doubts regarding its financial capacity, which is why Bitcoin has had a hard time positioning itself in a financial market controlled by third parties.

Although 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 were opened to a new digital ecosystem because of the technology that supports BITCOIN operations and is known as the blockchain.

What attracts Bitcoin investors?

Bitcoin has fought 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 that, for many, is characterized by high volatility. 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 the operations can take minutes.

The costs per operation are meager; even in some processes, 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 not needed for the operations to be carried out, and much less can they profit from cryptocurrency transactions.

No worldwide policies control them, which is one of the causes of so many doubts among future users since it is incredible that it is owned and manipulated absolutely 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, the processes can be traced since Bitcoin addresses are unique.

Accessibility to information is free and open, allowing 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, its issuance is limited; there will be no more than 21 million units of Bitcoin; it is a fixed currency which, unlike Fiat currencies, more and more coins are printed, which becomes a temporary solution to inflation.

Anyone can access the BLOCKCHAIN ​​, but the anonymity of the users is still maintained.

Moments of a panic attach users to Bitcoin.

Although digital currencies are going through a bearish crisis that cannot be controlled, nothing prevents users from joining this financial protocol.

The mixed feelings after the millionaire losses that have occurred during this first half of the year have not been easy to manage. Still, two scenarios are proposed in the face of a possible change in trend.

The first scenario is a corrective phase after having experienced upward trends during 2021 that took it to record highs several times; the downward 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 the least desired scenario is where the trend changes to a temporary upside that drives Bitcoin deeper down.

In any of the scenarios, the users who win always keep their units in storage since when the market stabilizes; they will be able to generate genuinely good profits.

Conclusion

There are more positive aspects that these digital currencies have than negative aspects, which is why their users remain on the lookout for the changes to come.

Bitcoin is not going through an easy phase. Still, its characteristics will allow it to engage more strongly with the financial market, this time in the face of a somewhat hit economy like that of the United States.

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Founded in 1994 by the late Pamela Hulse Andrews, Cascade Business News (CBN) became Central Oregon’s premier business publication. CascadeBusNews.com • CBN@CascadeBusNews.com

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