Since the US government first began to disperse a coronavirus stimulus to help people through these difficult times, many beneficiaries have invested their money in Bitcoin. This decision has paid out for them, as they have already seen a 12% return on their investments.
The fact that the federal government continues to debate the release of further stimulus payments during these times means that more people might invest in BTC when seeing its continuous rise.
But is this a good decision? Let’s find out!
Coronavirus, World Economy, and Bitcoin
Many banks around the world conducted stimulus measures as a result of COVID-19. The effect of this is that the stocks of these banks have fallen and local fiat currencies have lost their values. However, the story has been different for Bitcoin.
After the value rose by more than 300% in 2020, BTC has had a record-breaking start to this year. Increasing demand for this coin is causing the price to increase further.
A common trend on how people used their stimulus checks, as noticed in the USA, is to invest them in BTC and other valuable assets such as gold and stocks. The bullish movement of BTC, which was made in 2020, was obvious for all to see, even though many other assets lost their value as a result of the pandemic.
With more stimulus checks going out, local currencies are losing value while Bitcoin continues to rise.
Will It Be a Worthy Choice to Invest in BTC in 2021?
Let’s consider the advantages and disadvantages before making this decision.
- BTC is becoming a more stable coin as big investors are now seeing its potential and investing in it.
- The Bitcoin movement is becoming more predictable, and an investment like this will be profitable for users who just hold on to the currency for as long as possible.
- The governments of many countries are actively seeking to regulate BTC. These regulations could be the wild card that makes the value of this coin and other cryptocurrencies fall.
- Bitcoin is still a volatile digital currency, so defining a perfect trading strategy for it is challenging.
How to Buy BTC on the Anonymous Decentralized Exchange
We will use the Godex converter as an example:
- Choose the currency: If you’re converting, for instance, XRP to BTC, go to the You Send field and choose XRP, with a desired number of coins. Then select BTC in the You Get field. This will automatically calculate the amount of BTC you get. Then click Exchange.
- Enter wallet address: Put your BTC address in the Destination Address. Also fill in the Sender address with your XRP address, in case of a refund.
- Wait for the deposit: Send the XRP coin to the deposit address. The exchange process starts as soon as they receive the deposit.
- Commit exchange: The exchange does all the work and sends your BTC to the designated address within a few minutes.
Start Investing with BTC
The governments and banks are trying to provide help for people during this period through stimulus payments. But many are investing this free money into BTC. Many big players also see the opportunity to make huge gains just by keeping hold of the coins for so long.
However, to develop effective trading strategies, users have to understand government regulations. For investors looking to buy BTC, Godex is a good place to do this.