Why Were Cryptocurrencies Able to Beat Stocks as An Investment In 2020?

Introduction

The popularity of the Cryptocurrency gained a significant boost in late 2017 when the Bitcoin’s historic rally reached its peak value. Investors and traders from all over the world started showing their interest in Bitcoin.

The trend of the Cryptocurrency market was on the uprise again. That was a crazy time that has converted Bitcoin into digital gold. Even the taxi drivers were looking for an opportunity to get payments in Bitcoins. Yes, that high was the trend in 2017.

However, even after the trends soon came to an end and the digital gold soon settled down, people were still looking for opportunities to invest in Cryptocurrencies. Though the trend is gone, experts believe that it was the sign that shows Cryptocurrency and Bitcoin will soon become the next big thing in the market. And we will soon step into the digital payment era.

How Was Cryptocurrency Able to Beat Stocks in The Investment Market?

After the onset of Bitcoin’s popularity, traders and investors were looking to use Bitcoin in a better way. At the time of the onset, there were no methods where you could have used the Bitcoin smoothly. So investors found a better way to use Bitcoin and other Cryptocurrencies in the form of investment.

Over time, investors realized that Bitcoin is performing better than most of the market assets. Hence, this practice has become common. Today, Bitcoin is considered one of the safest assets to invest in.

Investing in Digital Currency and Traditional Stocks

The constant evolution of the technologies has made the new generation perform the tasks efficiently. This practice has made the new generation quite tolerant to the volatility of new things. This resulted in the new generation accepting new things. This includes Cryptocurrencies.Over the past decade, people are debating over CryptoRevolt. When blockchain technology erupted in the market, most people were sceptical about the existence of the Cryptocurrencies.

However, after seeing how it performed in the market, people became curious about its working and started investing in Cryptocurrencies. The performance of the Cryptocurrencies was better than the Stock’s Market over the past decade. In a survey, we found out that more than 43% of millennials are comfortable with Cryptocurrencies investment than stocks.

Which Market Is Better?

When we talk about the investment market, most people instantly talk about their difference in approach. Well, they are not wrong in the context, but they are not even entirely right. The two investment markets showed some of the basic features that people hardly notice.

Baseline Function

The baseline feature of the market is the same. Demand dictates both the market. The Demand of the market means the willingness of the people who are buying and selling the assets. As the demand rises, so does the value. This principle has been followed since medieval times. If there is a product for which people are willing to pay more than the other, then the product’s price will see a hike. Simultaneously, the price of the same product will deflate if no one pays attention to the product.

Fiat Currency Value

The value of the fiat currencies still determines the value of the Cryptocurrencies and stocks. Hence, you cannot omit the involvement of the fiat currencies. If the value of the fiat currency will see changes, so does the Cryptocurrencies and Stocks. The market features always show a possibility of Cryptocurrencies taking over or co-existing with the fiat currencies.

Investment Based on Value

No matter which market you are in, you will always look at the market’s regulation and feasibility. So, if one currency is regulated more and has a feasibility rate, then the investors will put more money on that particular asset. This practice is also common for both Cryptocurrencies and the Stock market.

The Bottom Line

Over the past 10 years, Cryptocurrencies have seen a price evolution of 3 million times. This alone is enough to show the potential of Cryptocurrencies and Bitcoin over the Stock market. This is what we think. We would like to have your thoughts, as well.What do you think about the current stranding of the Cryptocurrency and Stock market?

 

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