[Taklimakan Blog] 3 Reasons Why Investing in Bitcoin Is a Bad Idea

This year, 2020, has been challenging. Investors in traditional instruments saw the fastest bear market in the history of modern Wall Street — a fall of 30% in a matter of minutes. True, investors with iron nerves came out of this apocalypse without losses, as the S&P 500 reached new highs in less than 5 months and led to sagging assets.

In the crypto space, Bitcoin has performed well. This asset, on an annualized basis, grew 60% and continues to outperform the stock. There are many reasons for this behavior. The experts never tire of listing the benefits:

• Limited issue of 21 million coins, hence the scarcity of the asset.
• The anticipation of the digital revolution, linked to people’s belief that paper money has run out. Including from the point of view of a material thing that carries dangerous influenza viruses and Covid-19.
• Bitcoin is the first virtual coin, all other altcoins were created on its technology, while BTC is an intermediate tool for buying lesser-known crypto coins.