Business tends to reinvest back most of their profits to increase their investments and anticipate to increase future profits. However, this option may be risky or affect the productivity of the firm if the company has reached maturity whereby future investment results in marginally lower profits. In such situations, business management or board of directors may opt to invest in external profit generating stocks or markets. For the past seven years, Bitcoin has been the most popular investment due to its high rates of value and its acceptance in most companies and foreign markets to be used for a transaction. The growth of the crypto-currency in the form of Bitcoin has seen some of the highest gains compared to other stocks.
Given the performance of Bitcoin for the last seven years, it would seem foolish not to exploit in the profit generating investment. However, before making any investment from the hard-earned profits, the company must determine the benefits and risks involved to ensure that the investment will produce positive results in the short and long-term. The growth of Bitcoin from $2000 to $16,000 in the past one year demonstrate that the Bitcoin is growing at an accelerating rate. An investment of $3000 in Bitcoin during the time would have resulted in five-figure sums during the period. The most compelling benefit about Bitcoin investment is that it is not affected by inflation, social and political instability like other stocks do, it grows faster, and there are few risks of purchasing the Bitcoin as projects demonstrate its value will only increase.
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The risks involved in the investment are based on the notion that since most people are investing in Bitcoin, the value will diminish, but these allegations have been in existence since the initiation of the Bitcoin. Businesses gain highest profits by undertaking smart and risky ventures. Therefore, it would be wise for the company to invest most of its profits in Bitcoin and wait to reap the profits.
