Is bitcoin trading still profitable in 2021?
While the world was facing the biggest economic turmoil in history, Bitcoin kept its roots intact and rose higher than before. The popular trillion-dollar Bitcoin has made a solid comeback after facing the massive price dip in 2018.
From a mere $8424.12 to a whopping $58,843.65, Bitcoin has experienced the most dramatic price rise in the previous pandemic year. This 600% price rise has opened rooms of opportunities for both seasonal investors and novice traders. Being the first currency in the crypto industry, Bitcoin is the first-ever digital currency to reach the trillion-dollar market capitalization.
All these solid statements might have satisfied your curiosity about the profitability of Bitcoin. From trading to mining, if there’s any cryptocurrency that offers the major profit shares – it’s none other than Bitcoin. It’s the reason for billions of crypto enthusiasts risking their money and making whopping profits to unexpected losses.
With that said, let us further dive deep and explore if bitcoin trading is still profitable in 2021.
Factors that define Bitcoin’s Profitability:
Ever since the launch of bitcoin in 2009, this cryptocurrency has filled massive gaps in the financial system. Whether it was yesterday, today, or tomorrow, Bitcoin is going to shine because of its exceptional working mechanism.
Based on Blockchain, every transaction through Bitcoin is completely decentralized, secure, and encrypted. Not only this makes Bitcoin the first preference of users when it comes to security, but also makes it an excellent option to allow peer-to-peer transactions using trading platforms.
Furthermore, the high volatility of Bitcoin makes it one of the ideal options for use like trading, holding, staking, and mining. All of these play an integral role in making profits and helping users make a luxurious living through Bitcoin.
However, the year 2021 has been a true roller coaster for Bitcoin because of the massive dips and surges observed. As a result, the trillion-dollar cryptocurrency is dependent on a number of factors, from its price to popularity and other aspects.
Let us walk you through those factors one by one.
- User Growth:
One of the major reasons Bitcoin is the most hyped trend on social media is its extensive customer growth. At the time of the first surge in price, people soon started to realize the significance of Bitcoin and its endless potential.
Over the years, the trillion-dollar cryptocurrency has grown from zero to thousands of dollars, driving massive customer growth. From bankrupts to struggling individuals, it proved the ultimate savior for numerous countries to individual people for their dying financial conditions.
- Limited Supply of Bitcoin:
You probably have heard the demand-supply phenomena, but Bitcoin takes it differently. The finite supply of Bitcoin despite the fact that it has substantial demands in the crypto market. Be it miners, investors, traders, stakers, or holders; everyone wants to acquire as much Bitcoin as possible.
With inflation reaching its peak, Bitcoin seems the ideal way to make amazing profits without breaking a bank. Till today, Only 18,756,862.5 or 21 million bitcoin coins exist in the Bitcoin protocol. This controlled supply of Bitcoin is due to the fact that only a pre-defined quantity of bitcoins is mined every year.
- Processing power and profitability
Like any digital asset, acquiring Bitcoin is not everyone’s cup of tea. It requires the resources, efforts, money, and expert technical capabilities of a Bitcoin miner. Mostly. Bitcoin is mined in a large crypto farm where hundreds of miners combined their resources to mine new chains of Bitcoin and supply them to investors.
Surprisingly, the number of miners is more today than in the past years. Like trading, staking, and holding, bitcoin mining has also turned into an exponential way of earning through bitcoin with a far easier and less risky approach.
On mining cryptocurrency, miners get a substantial reward for their efforts and expensive resources such as high-powered computer processors and graphic cards. The best part about Bitcoin mining is that it’s cheap and is not going to soon rise in price.
The answer to Bitcoin trading is still profitable is pretty clear in light of all the points we have discussed in this article. As per the prediction, Bitcoin is likely to spend so many years with nearly the same efficiency and popularity.