The Bitcoin market has always been a fascinating one. It has performed quite well in the trade market in recent years. The popularity of the bitcoin was boosted after the successful rally in 2017. Bitcoin’s market always has steep ups and down, making it more exciting and proving its high volatility.
Amid all the current chaos in the trade market, traders and investors support the idea of cryptocurrency. More importantly, people have always asked for a new financial system over the past decades. The cryptocurrency existence seems to have the features that people always wanted in the new financial system.Even after such large-scale use of the cryptocurrency in the market, people are still far from pinpointing the cryptocurrency’s characterization and how it will perform.People predict that cryptocurrency holds many possibilities. And one of the most rumored possibilities is that cryptocurrency can become a mainstream currency.
How is bitcoin considered an asset?
The concept of the bitcoin was formulated to offer the people a new mode of transaction. However, in the past 10 years, it has become an important part of the trade market. Today, people see bitcoin as an asset more than a currency.Here are the reasons why bitcoin is more of an asset than a currency.
- Digital gold
Bitcoin has been there in the market for more than 10 years. Despite being used for illegal means, exchange hack, and scaling stalemate, people have shown their trust in this modern trade market’s modern marvel.After seeing how it performs in the market is not even close to any real stocks, people still believe in bitcoin. They even have given bitcoin a moniker “Digital gold.”
The reason people are comparing bitcoin with gold is their shared nature of scarcity and the efforts required to mine it. They are similar to the point where their downsides also resonate with each other.Despite being a significant gap in their age, you will find a close similarity in their ETF charts. It is assuring to see that both the assets of different ages perform similarly in the trade market.
- Crypto assets synchronizing with the tech stock
Another greater muse of the bitcoin and other cryptocurrencies is the tech sectors where they are used the most. This technology is being used to make these cryptocurrencies now being used in the tech industries to keep track of everything possible.bitcoin has more than 60% of the total cryptocurrency market capitalization that means more than 60% of the industry is under the same blockchain network. This concept is being used to keep track of and information in one place.The Blockchain network is bringing the changes that the internet has brought in early 2000. If we compare the impact of the internet in our lives, we can hope to see the same impact from the cryptocurrency in our lives.
- Bitcoin as commodity
What is a commodity? A commodity is a basic good used in commerce and can have interchangeable nature in terms of physical attributes. This is the basic principle of the commodity. However, there are several shades of truth in reality. For instance, you will find different qualities in the same product.So how can bitcoin be considered as a commodity? The nature of interchangeability is common for them both. Furthermore, the distinction of bitcoin mining helps us to create a connection between commodity and bitcoin.
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We must not forget that bitcoin can also be used to interchange products. Hence, there is no doubt that bitcoin has all the features that are required within a commodity.
Conclusion
Seeing how bitcoin has been performing in the last decade, one thing is sure that it is more of an asset than a currency. Yes, it is a form of currency and is being used as one as well. However, if you will see the extent of the regulation, you will find that people have started using it as assets due to the restriction in regulation. And in a way, it has been more effective. If you are interested in bitcoin trade, then you can log in to Oil Profit.
