Bitcoin is the most repurchased asset within the investment platform, ahead of Tesla and Apple, according to the Bitcoin Conference 2022.
This means that bitcoin is the asset on which there is the highest volume of periodic purchases on this platform. Many investors use periodic purchases to optimize their returns based on a fixed investment that is made with a certain frequency.
If we compare the growth, in terms of prices, of these three assets, we could see why investors are choosing Bitcoin, ahead of other cryptocurrencies such as Ethereum and shares of companies such as Apple and Tesla.
For example, Apple has grown 29% since June last year until now, trading at USD 172. For its part, Tesla’s shares have had a greater appreciation in that period of time, over 42%, with a current market value of USD 1,057.
Bitcoin also saw significant growth between June last year and this year, amounting to 27% of its current value of USD 44,000.
Considering the current momentum of each asset, it is striking that Robinhood investors choose bitcoin ahead of Apple and Tesla. The reasons may lie in the fact that bitcoin has had two significant periods of appreciation in the span of a year, where it traded above USD 50,000 and peaks above USD 60,000.
For many investors who bought BTC at USD 30,000, those gains would represent figures in excess of 40%. A recent analyst study predicted that bitcoin’s value could go up 10 times in the future. Considerations abound, of course, and expert opinion is also inclined to see today’s bitcoin price as a key moment for its future.
Sending and receiving bitcoin from Robinhood’s wallet
In this context, the executive announced that Robinhood is enabling its wallet for two million users, who will be able to send and receive bitcoin (BTC) beyond the Robinhood ecosystem.
Until today, this function was not enabled, as it was only possible to buy and sell within the platform, without the possibility of making or receiving external transfers. Now you will be able to transfer bitcoin to and from wallets such as Ledger or Trezor.
In September last year, the investment company started a program to develop its wallet, which had one million users in January. The program was enriched with feedback from users who participated in the test during these months, which contributed to adding features such as easy-to-understand explanations on how to make transactions with cryptocurrencies.
“This is a very clear tipping point to normalize and allow many more people to enter the world of cryptocurrencies and bitcoin,” Chennapragada said regarding the predilection of Robihood users when investing in an asset.
Bitcoin’s Lightning network arrived at Robinhood
As part of Chennapragada’s announcement, the Lightning network will also be integrated into the Robinhood wallet, making it possible to exchange bitcoin quickly and cheaply. In this way, it joins other companies such as Kraken that recently adopted this second-layer bitcoin payment network.
The Lightning network is a solution for exchanging bitcoin through payment channels, which allows its users to establish exchanges without waiting times and in a secure manner. Among the advances of this payment network using bitcoin, we can count the development of a function to issue and exchange tokens and stablecoins such as USDT, recently reviewed by CryptoNews.
Bitcoin trading is Robinhood’s future
Robinhood’s bitcoin trading in the fourth quarter of last year generated around USD 43 million in transaction-based revenue. This was 79% less than the previous quarter, according to Bloomberg, as it generated USD 233 million in revenue in that period. Still, today’s announcements prove that the company is betting on a future where bitcoin will be a major player.
For now, Robinhood offers trading of bitcoin (BTC), litecoin (LTC), ethereum classic (ETC), ether (ETH), and dogecoin (DOGE).
During Robihood’s announcement, Chennapragada expressed this company’s willingness to move towards a greater commitment to bitcoin adoption.