Equity or Stock markets have been around for a long time now. Bitcoins on the other hand are quite new and are referred to as a new form of digital currency. Bitcoin and other cryptocurrencies only began gaining massive popularity in 2017.The currency is highly volatile as of now and there are huge fluctuations in its price. Many experts are predicting that Bitcoin s the currency of the future and it is able to provide very good returns in the coming years. Thus Bitcoin is slowly emerging as a very good investment option .Let us have a look at the comparative study between investing in a stock market and investing in Bitcoin
Patoience is the key to succeed in a stock market. In order to make a certain amount of profit on your investment, it takes a lot of time, sometimes even years together in the stock market. Bitcoin on the other hand has proved to be highly volatile so far. Due to this volatile nature, sometimes its value increases multifold and investors can make huge profits. Thus Bitcoins can be a better alternative than trading in stocks when it comes to the ease with which you can make profits.
Bitcoins are accepted in more than 180 countries across the world. They have very low transaction fees and can be transferred to any place across the world. Stocks on the other hand are limited to trading within a particular country, are limited to certain buyers and have very high trading fees.
Bitcoins have a cap of around 21 million. Nowadays many people are investing in Bitcoins, after knowing about its potential. This has led to an increase in its demand. Also the cap on mining of Bitcoins ensures that the demand will be always more than the supply. Stocks on the other hand have no such cap associated with them. The limited supply factor is something that will make investing in Bitcoins worthwhile. Share market has a predictable trend when it comes to the demand and supply methods.
Bitcoin is volatile and hence there is always a certain risk involved in investing in this .This risk is also prevalent in case of share market. Share market, however enjoys Government backing which the cryptocurrency market does not have. But there are so many people who have put their trust in the cryptocurrency market and earned millions of dollars. It is easy to trade with Bitcoins as the transaction fees is very less compared to stock markets.