Why Bitcoin Continues to be on The Top of Its Game
Despite a few scaling issues with Bitcoin, it is still considered as one of the leading and easily recognizable cryptocurrencies today as investors are having massive gains.
Despite scaling issues with Bitcoin, it is still considered the leading cryptocurrency in the world. It continues to surge and expand as investors get enticed by the possibility of massive gains in a short period of time. Even more promising are Bitcoin’s long-term prospects.
Bitcoin keeps on surging
Investors love Bitcoin because it has been providing a significant and fast return on investment. They have been scrambling to get their hands on Bitcoin, or to gain exposure to it through the Bitcoin Investment Trust. The Bitcoin Investment Trust trades publicly under the GBTC symbol and offers investors exposure to Bitcoin without the challenges of acquiring and storing the currency.
Bitcoin is currently trading in the $4,000 range. According to a recent presentation made by the Bitcoin Investment Trust, as of July 31 each share of GBTC represented 0.09258535 Bitcoin. GBTC is currently trading at about $684 per share, equalling about a 41.5% premium..
Even if there is a high premium, investors are willingly paying it along with the annual 2% fee. In the July 14th filing of Registration Statement No. 333-215627, GBTC explains the reason its shares are in such high demand. The filing states:
“[GBTC is the] only publicly-quoted investment vehicle that seeks to provide passive exposure to Bitcoin."
Investors are winning with Bitcoin
Some may believe that GBTC’s premium and annual fees are too high, and choose to purchase and hold Bitcoin directly. Either way, there’s no doubt that Bitcoin has brought its investors much profit this year.
Demand continues unabated, as Google Trends shows searches for “Bitcoin” are at an all time high. This could be partially explained by analysts such as Ronnie Moas, who has speculated that Bitcoin may soon exceed $7,500. Others, like legendary trader masterluc, are even more optimistic, citing a near-term price of $15,000 per Bitcoin.