5 reasons to buy Bitcoin at its current minimum

It has been a difficult year for the "holders" of bitcoins, who have had to see the price of the world's leading digital currency fall by more than 50 percent to date. But even taking into account this negative Bitcoin volatility, here are five reasons to keep the faith: 

 
1. The Bitcoin institutional ecosystem is growing   The announcement of the Intercontinental Exchange's intention to launch an "exchange" of digital assets aimed at institutional investors is perhaps the most important news for the crypto-active this year.  Intercontinental Exchange (ICE) is the company behind the New York Stock Exchange and its plans include the construction of an exchange that allows investors to trade futures in digital assets, which will include physical delivery bitcoin futures.  While Bitcoin can already be considered a viable alternative asset class for retail and institutional investors, the opening of a new cryptoactive backed by a Wall Street giant is exactly what Bitcoin needs to be accepted by the institutional investment community.  On the other side of the pond, the second largest stock exchange in Germany, Börse Stuttgart, has also announced plans to launch a cryptoactive exchange. According to FinExtra, Börse Stuttgart is developing an exchange of initial offers of currencies, a market for the cryptocurrency trade and a secure storage facility for these digital assets based on cryptocurrencies.  It is clear that the institutional barriers are breaking bit by bit for Bitcoin, which seems to be taking its first steps to the big financial markets that will give it the importance it deserves. 

2. Regulators have accepted that Bitcoin is here to stay.


One of the biggest risks for Bitcoin over the years has been regulatory risk and the possibility that governments and financial regulators may try to eliminate it along with the crypto ecosystem because of its potential to disrupt established financial institutions.

Even at the beginning of 2018, regulatory risk played a role in the fall of Bitcoin prices before the G20 meeting in March, where global cryptocurrency regulations were discussed.

Fortunately, for investors in cryptocurrencies, lawmakers who attended the G20 meeting concluded that cryptocurrencies do not threaten the global financial system and that there will be no global setbacks against cryptocurrency innovation.

In addition, several countries have adopted a more positive stance towards cryptocurrencies to attract the burgeoning blockchain industry. Nations such as Belarus, Bermuda, Gibraltar, Malta and Switzerland, for example, are struggling to become big blockchain centers, while the fourth largest economy in the world, Germany, is now officially accepting bitcoin as a legal payment method.

3. A Bitcoin ETF is coming (sooner or later).

While it is difficult to say with complete certainty that we will see a publicly tradable and tradable Bitcoin ETF on the stock market, most Bitcoin experts agree that it is only a matter of time.

Not only is there a stack of new Bitcoin ETF proposals hitting the SEC's desk waiting for approval, but, more importantly, SEC Commissioner Peirce announced that she did not agree with the SEC's recent decision to reject the Bitcoin ETF proposed by the Winklevoss brothers.

In addition, with regulated bitcoin futures already approved by the US Commodity Futures Trading Commission (CFTC) and trading in both the CBOE and the CME, it is difficult to imagine a scenario in which a Bitcoin ETF does not be finally approved.

 

4. Bitcoin is a great diversifier of investment portfolios.

According to a study by Yale University, each diversified investment portfolio should have between one and six percent in bitcoin, depending on the investor's conviction about the future of the digital currency.

The authors of the article, Yukun Liu and Aleh Tsyvinski, discovered that cryptocurrencies, including Bitcoin, are not exposed to the influence of the stock market or macroeconomic factors, nor do they correlate with currencies or commodities. In contrast, returns on cryptocurrencies depend on factors specific to their own market.

In addition, the cryptocurrencies analyzed in the study, BTC, ETH and XRP, show a better risk return performance plus the additional benefit of not being correlated with the traditional asset classes.

5. Growing demand in emerging markets.


Despite the bear market in 2018, bitcoin trading volumes in the largest peer exchange, LocalBitcoins, are beginning to move towards their 2017 highs in emerging markets.

Countries such as Kenya, Mexico, Nigeria and the Philippines, for example, have witnessed an increase in the volume of transactions in recent months. In addition, the economically struggling nations - whose sovereign currencies have been in a downward spiral - have seen a substantial increase in the adoption of bitcoins. In Argentina, Venezuela and Zimbabwe, bitcoin trade volumes shot up to new highs in 2018.

Most emerging market buyers tend to be small retail investors and, therefore, not as a market that moves as high net worth individuals or institutional buyers, nonetheless, they act as an excellent indicator of global consumer trends. adoption of Bitcoin.

In light of this year's positive developments for Bitcoin, its global acceptance and the growth of its ecosystem, Bitcoin's current price range can provide a good entry point for long-term investors.