Many investors are clueless due to the pandemic this year, especially those new to the market. They are looking for a safe investment option and seeking help from financial experts. Furthermore, investing in cryptocurrencies like Bitcoin is confusing. Many people are perplexed as to whether or not it’s a safe option. Before I share what financial experts say about bitcoin investment for this year, I would like to ask you some crucial questions.
- How do you manage your investment portfolio?
- Do you manage on your own, or you have a financial advisor?
- How much bitcoin percentage do you hold of your total investment capital?
If you are new to the crypto market and managing your investments on your own, read this article till the end. Here you will get a clear idea of bitcoin investment in 2020.
Financial Experts Recommend Bitcoin in 2020
Financial experts recommend adding bitcoin to investment portfolios. Even before the coronavirus crisis, they were suggesting some exposure to digital currencies, especially bitcoin. The bitcoin experts who believed in its potential have invested a large part of their capital in it, you can go to homepage to know more. Now let’s look at why it is an excellent option to invest in bitcoin in 2020.
High Institutional Demand for Bitcoin Post Pandemic
The COVID-19 outbreak hit the financial markets and resulted in the worst recession. Companies cannot estimate their earnings, and traditional investments have taken a huge downfall. So investors across the world are now searching for safe investment assets and asking whether bitcoin is secure.
Tetsuyuki Oishi, a crypto analyst, shared three main reasons why there will be high institutional demand for Bitcoin after the pandemic. He is the CEO of Bitcoin Lab and a crypto analyst in the financial company Fisco, Japan.
- First of all, the stock market demand will decline after the pandemic as a high decrease in demand for many products that will have a long-term corporate loss.
- Cryptocurrencies are more attractive as it is still very little to no correlation between the crypto and the traditional market. Although there is a correlation when the pandemic hit, it’s for a short period. After that, the price of cryptocurrencies, especially Bitcoin, has plunged up, and now it’s hovering around $10k to $11k.
- Lastly, the interest in Bitcoin has not declined even after the coronavirus pandemic. Moreover, institutional investors have not sold their holdings during the epidemic.
It’s clear from the above reasons that there will be high institutional demand for bitcoin post-pandemic. So it’s the right time to invest in bitcoin, and it is a safe investment option. However, you should not neglect the risk involved in virtual currencies. Chances are there; you may lose all your capital, so invest that amount in bitcoin, which you can afford to lose. Now let’s see what Robert Kiyosaki, the author of Rich Dad and Poor Dad, say about bitcoin investment.
Dollar is Dead
Robert Kiyosaki, an American businessman, also suggests investing in bitcoin as he said that the dollar’s value is going down, and it will continue in the future. He owns a financial education company called Rich Global LLC and Rich Dad Company.
Apart from this, many other financial experts also suggested that bitcoin is a good investment option. General opinion has evolved from the financial experts that central banks are printing traditional money, and bitcoin is the right hedge against inflation.
The experts have suggested that bitcoin is a good investment, but it’s your money, and you will take the risk. Thus, if you want to invest in bitcoin, you should be able to bear the risk. So consider this factor before you invest in it. Experts advise holding only 5-7% of your total investment in bitcoin. Now, do you think that investors will invest in bitcoin in 2020? Share your opinion in the comments section below.