March 4, 2020 / Business
The Best Way To Invest During The Coronavirus Epidemic
More recently, the American cryptocurrency and gold trading platform iTrustCapital published the results of its own study, in which the experts found out what assets people prefer to invest in during an epidemic or pandemic. And here’s what is interesting: people aged 33 to 40 called Bitcoin the most profitable investment tool. The generation of the 80s, as well as millennials invested in cryptocurrency twice as often as investors of another generation did. The older generation rarely invests but in larger amounts.
Why Millennials Choose Bitcoin For Investment
- High risks – high profits. Bitcoin, like other cryptocurrencies, cannot be called a low-risk asset. Cryptocurrency volatility is slightly higher than that of traditional investment instruments. However, high-risk assets can bring good dividends to their holders. According to FinExpertiza’s analytical report, in 2019, every US dollar invested in Bitcoin brought the investor two US dollars of profit. In terms of its ability to generate revenue, the Bitcoin outperformed gold, the US dollar, the euro, and real estate.
- The future is digitalization. Investments in and of themselves imply making a profit in the future, and, as you know, the future lies with digitalization and computerization. The cryptocurrency market will rapidly develop and expand. The millennial generation, which many are talking about today, will support him with his interest and involvement in the innovative technologies on which cryptocurrencies are based. No wonder young and active people around the world are actively investing their funds in Bitcoin. This is also facilitated by the simplicity and low threshold of “entering the crypto”.
- A large degree of independence from external conditions. During a pandemic or epidemic, the trend towards which is observed today in the world, cryptocurrencies are more secure assets than everyone else. Bitcoin is not directly correlated with the cost of oil, gold or a particular currency.
Therefore, it can be argued that during epidemics, pandemics and other global negative events, cryptocurrencies can become a protective asset that will protect, and in some cases, increase the investor’s investments. The main thing is to maintain a balance between conservative assets and high-risk ones to be able to quickly and effectively respond to market changes.