Ever since the cryptocurrency market started to expand with more and more projects going online, it has become one of the hottest investments of the last decade. However, the popularity of Bitcoin, the world’s first cryptocurrency is still at the forefront. There are a lot of reasons for this, with one being its sudden price spike.
At the start of 2021, the value of Bitcoin had more than quadrupled compared to last year, and by 7200% over the last five years. The cryptocurrency which has a limited number of mineable tokens (21 million), is impervious to deflation that plagues normal fiat currencies. The utility of Bitcoin, which is divisible down to eight decimal places, also allows anyone to invest with a few dollars, contributing to the widespread popularity and adaption.
However, Bitcoin is still considered an inherently dangerous investment and there are reasons for it. Perhaps the biggest reason is the apparent dependence of Bitcoin’s value on scarcity and utility. For instance, when it comes to scarcity, Bitcoin will never be a reliable medium of exchange as there aren’t enough tokens in circulation. On the other hand, Bitcoin can never really replace cash or fiat currencies as its token limit cannot be raised.
Ways to get rich off Bitcoin without owning them
The volatility experienced by the Bitcoin market can be extremely difficult to trade-in. However, for those people who want to avoid volatility, there are ways to profit off Bitcoin without owning them. For example you can either trade binary options or Contract for Differences of Bitcoin and other cryptocurrencies in brokers such as IQ Option. Visit them at https://www.iqoptionmag.com/cryptocurrency-cfd-trading.html
Some of the other methods of earning off Bitcoin are mentioned below.
Bitcoin Miners and GPUs
Buying stocks of manufacturers of Graphics Processing Units can be a great way to make some money off Bitcoin without exposure to its risk. This is due to the process of mining, which validates transactions executed over the blockchain. In Bitcoin’s case, miners use high powered GPUs to solve mathematical equations to verify “blocks” or a group of transactions.
The industry giant in the case of graphics cards is Nvidia. While it’s true that the bulk of Nvidia’s sales is generated from the gaming industry, it receives a huge chunk of its revenue by selling GPUs to miners. Industry experts have predicted that NVIDIA has the potential to generate about 4% of its revenue from crypto mining in the future. Thus, investing in NVIDIA will allow you to capitalise on Bitcoin’s rising value.
Trading exchanges and platforms
Investors can buy a stake in online brokerages of even shares of CBOE Global markets if they want to get exposure to Bitcoin futures trading. Alternatively, they can take advantage of increased trading done nowadays through digital payment companies. Examples: Square and PayPal
PayPal has started allowing users to buy, hold and sell crypto directly through its official app. As a result, The 361 million strong customer base of PayPal have acess to crypto tokens and can use them to make payments with various merchants. There are about 26 million active merchants with PayPal at the moment.
On the other hand, when it comes to Square, its Cash App has seen a quadruple rise to 30million by mid-2020 compared to 2017. Even though the main usage of the Cash App is for everyday purchases and bank transfers, Bitcoin transfers have also contributed to their revenue. This has influenced Square to acquire $50 million worth of Bitcoin in October, roughly 1% of the company assets. So investing in these two companies will allow the investor to profit from it as Bitcoin trading volume increases.
Investors can focus on investing in businesses that offer Bitcoin as a reward. An example would be Visa, one of the world’s biggest payment facilitators. Visa has previously partnered with fintech company BlockFi to introduce a Bitcoin rewards credit card. It allows consumers to earn 1.5% cash-back on their purchases. However, they are paid in Bitcoin tokens which can be either withdrawn, traded or used as collateral for cryptocurrency backed loans.
Visa is undoubtedly one of the biggest juggernauts when it comes to cashless payments, handling more than half of US credit card network purchase volume. It doesn’t lend money, so it does not have to provision for credit delinquencies. The introduction of a Bitcoin rewards card will most certainly provide Visa with an edge in the cashless payments space.
Binary Options Trading
One of the best ways of making money off Bitcoin without actually holding any is via binary options trading. Anyone can make money no matter which direction Bitcoin’s price goes. Binary options in general work very well with assets that are highly volatile as it brings more opportunities. This provides a great opportunity for traders to take advantage of binary option trading. This is due to traders analysing the currency market’s variability through small price movements, while Bitcoin movements are enormous. You can try binary options trading from a reputable broker like IQ Option.
Cryptocurrency trading especially when trading Bitcoin requires a lot of specialised knowledge and expertise to trade well directly on exchanges. However, Bitcoin provides many other opportunities for users to earn off it without ever acquiring it. All of these methods also increase Bitcoin’s adaptability amongst the general public.