Good investment opportunity?

Investing in e-currencies such as Bitcoin has emerged as an alternative to traditional forms of money, creating a new horizon for innovation in the financial sector such as individual-to-individual lending and digital portfolios. The greater the confidence of investors in alternative forms of money and payment mechanisms, the more money will appear as an alternative investment available.

In fact, Bitcoin has characteristics similar to gold; limited global supply and value preservation in the face of the fragility of the global market. There is an abundance of investment in petrochemicals to the extent that it actually outperformed its precious metal; it achieved an annual return of nearly 155% compared to gold which lost 6% over the same time period. But even though it seems to be a lucrative investment tool, its value may be as vulnerable as gold to the perceived risk of owning a commodit

Encryption is encrypted for security purposes; however, while the code specifies the currency itself, it does not identify its owner. If someone penetrates the mining system and gets the secret code, it will eventually become the official owner. What drives the investment value of the developers? One factor is growing demand from developing countries, especially Brazil, Russia, India, China and South Africa. These countries are experiencing economic crises and currency depreciation, making their domestic currencies unpredictable and fragile. As a result, it is common to use as a natural reserve against paper currency. One of the factors influencing the rise of Bitcoin is also the possibility of a trade war between China and the United States.

US President Donald Trump has pointed to the possibility of imposing a 45 percent tax on Chinese goods. This may weaken the yuan and drain capital from China; investors will look for more stable currencies such as the euro.

The jump in pre-crisis prices during the financial crisis is also evidence of its growing attractiveness as a guaranteed hedge. When the Cypriot economy collapsed in 2013, the price of the titans jumped. People moved to a way to pay other than the local currency. In 2015, when the Chinese currency took the plunge, people in the country turned to gold and gold. After voting for the UK exit from the EU, when global currencies and stock markets were weak, the value of the stakes increased by more than $ 100 compared to the previous day. This was the result of the prudent flow of funds from the Australian pound to the Bitcoin.

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