What comes to mind when you think of things that go together? Maybe it’s peanut butter and jelly or Batman and Robin?
Whatever pair pops into your head, just know that because they go together doesn’t necessarily mean that they’re always good together.
Take Bitcoin for example. If you’re any bit familiar with the digital currency, then you know that it goes hand-in-hand with volatility in the market like two peas in a pod.
At least that’s been the case for quite some time now…
However, Bitcoin just recently cut ties with the unpredictability that it’s been partnered up with, giving hope for the future of crypto as a whole.
With that said, let’s take a closer look at what this means and how it could affect the investments you have tied into it.
As I write this, the S&P 500 10 day historical volatility for the U.S. equity benchmark is hovering around 27, whereas Bitcoin is currently sitting at 15.7.
That’s more than an 11 point difference between these two values!
In other words, American stocks are now more volatile than crypto shares…
That’s saying a lot, considering Bitcoin was priced close to $20K about a year ago and it’s now worth $6,481.
It’s been a wild ride for Bitcoin, but all of the random price fluctuations that we’ve seen along the way have led the currency to where it is today.
Sure, Bitcoin’s value has plummeted over 60% from its peak last December, but that doesn’t take away from the fact that the currency is now more stable than ever.
According to the numbers, buying into the cryptocurrency is even considered to be a safer investment in comparison to traditional stocks!
To say the least, the tables have most definitely turned and it goes to show that crypto may already be making the first moves towards replacing the dollar.
Some people feel threatened by this idea of “out with the old and in with the new”, but let me remind you that doing so brings about both added security AND profitability in terms of the money you spend.
With cryptocurrencies, such as Bitcoin, there is absolutely NO risk of inflation. On the other hand, fiat money like the U.S. dollar is prone to lessening in value over time.
This is simply because it’s controlled by the government who has the power to print paper money as they please and alter the supply in the process.
But crypto takes this centralized power away from the government, making it impossible to inflate the supply. Simply put, your Bitcoin won’t decrease in value outside of the stock market.
It’s quite the opposite actually…
Cryptocurrencies have a fixed amount of “coins”, which will appreciate as more and more people use them.
Once word gets out that Bitcoin’s volatility has died down, we’ll see an increase in demand as more investors pour into the market and consumers look for an alternate way to conduct their purchases.
Each of these factors will equally push Bitcoin’s share price upward and put EASY profits in your pocket if you’re already invested in the currency.
Don’t hesitate on this opportunity any longer!
For the time being, the waters of crypto are calm and inviting. Getting in now could result in you riding a wave to the top as share prices surge from the added attention.
