The cryptocurrency sphere is filled with surprises. Most often, they are presented with new digital assets, however, even the most popular, such as Bitcoin, still surprise the market. This time, experts and traders were confused by the calculations of the British investment company, Buy Shares.
According to experts of Buy Shares, the first cryptocurrency has outperformed key stock indices of world exchanges in profitability over the past five years. According to analysts, over the reporting period, investments in bitcoin could bring investors over 3400% of the profit.
Experts call NASDAQ, S&P 500, Dow Jones and FTSE 100 among the global indexes that lost in terms of BTC profitability. Over the past five years, which turned out to be golden time for bitcoin, the value of the NASDAQ index increased by 96%, but the first cryptocurrency was ahead of it. The S&P 500 index showed much lower profitability - 46%, and the industrial indicator Dow Jones - only 42%. The most lagging among these indicators was the main index of the British stock exchange FTSE 100, which has plummeted by almost 7% over the past five years. At the same time, according to Buy Shares, the profitability of investments in bitcoin over the current five-year period exceeded the average indicator for these indices by about 70 times.
As stated by analysts, the reasons for this were two factors: the regulation of the cryptocurrency sphere and COVID-19. Earlier, in 2015, the lack of legal regulation interfered with the development of the digital industry, but it provided scope for any experiments with virtual assets. At the moment, when control over digital assets is gaining impulse, this serves as a barrier to BTC. The first cryptocurrency is supported by the coronavirus pandemic, which negatively affects stock indices, forcing investors to look for alternative sources of capital preservation. According to experts, the leader among them is Bitcoin.
According to them, there was a surge in interest in virtual assets during the increase in quarantine in a number of states. At the same time, the number of visits to crypto exchanges and operations with digital assets has increased. This sharply increased the demand for the first cryptocurrency, however, its further growth is hindered by the narrow price range in which the BTC has been located for the last two months. Since the beginning of May 2020, Bitcoin has been trading between $ 9,000 and $ 10,000.
In the first month of summer, the leading digital asset also did not leave these limits. The situation has not changed since the beginning of July: on Thursday morning, July 2, the price of Bitcoin moved near the levels of $ 9150– $ 9152. At the same time, the low volatility observed in the first cryptocurrency for several months can provoke sharp price jumps.
According to experts, due to low volatility and the risk of a new wave of COVID-19, the price of bitcoin can change dramatically. Experts consider two options: either the no. 1 cryptocurrency will show itself as a protective asset and sharply rise in price, or it will significantly decline like other risky assets. Investments in bitcoin can become a "gold mine" for investors, but it can most often outweigh the fears of being at zero. Experts also warn that the risk of losing everything is still high. They repeatedly call for weighing all the pros and cons of investing in the digital sphere.
The popularity of bitcoin is currently growing, and its status as the main cryptocurrency helps the high return on investment. According to Buy Shares, investing in BTC is profitable, but investing involves significant risks. Analysts summarize that an important role here is played by the high volatility and unpredictability of the cryptocurrency market.
