In just a few short years, Bitcoin became the highly valued cryptocurrency and a lot of the people are wondering if it is too late to invest in Bitcoin. Is it still worth buying Bitcoin in today’s time? The answer to all these questions is in this article.
Bitcoin Plus Market Sentiment
It was in 2017, when Bitcoin made history in the world of finance. It was released in the market in 2009, and since then it has risen from a couple of dollars to almost $20,000 in the latter half of 2017.
The ones who bought the coin, when it was being sold for thousand dollars or less, ended up benefiting from decent returns. Plus, the profits were bigger for the ones who bought Bitcoin when it had a value of tens or hundreds of dollars. However, in today’s time, the crypto landscape has changed since the past few years.
You can’t mine using only your PC or other appropriate equipment all on your own in order to make BTC earnings. Moreover, investors are cautious when it comes to getting into Bitcoin today, because there is no guarantee that a sharp surge, like to $20,000, will occur once again. Plus, Bitcoin’s price is still a budget-breaker for a lot of the people.
Furthermore, traders think that buying Bitcoin now isn’t going to bring big returns on the investment that they make, as compared to the ones during the 2017 rally, which skyrocketed Bitcoin to the top position.
Also, once new people start entering and investing in the market, the investors then have a greater chance of making their profits. This is due to new money entering the markets. This capital’s influx is a positive sign that will push the cost of the assets or that market’s asset will increase. However, Bitcoin’s prices have become expensive; hence people are avoiding investing in the coin. Not everyone is able to spend a couple of thousand dollars.
Is It Too Late To Invest In Bitcoin And What Are The Risks Of Investing?
People who are saying that Bitcoin is a safe investment probably have too much money on their hands. Actually, Bitcoin is an extremely risky investment, since it is still in the developmental phase, making it a volatile asset. Drops in the prices or a range of sudden surges in a day is actually quite normal. However, even if volatility offers a great chance to make money, there are a lot of risks involved in it as well.
Even today, there are many traders who are making money by buying Bitcoin that’s low on one market and then selling it for a higher price at another market, but the ones who are making money through this method are highly experienced traders.
Bitcoin is still known as a financial experiment, and a lot of the people are just waiting and observing how things will turn out in the end. When it comes to investing in Bitcoin or any other assets, one should not invest more money than what they can afford to lose.
Moreover, because of Bitcoin’s volatile nature, it can easily get impacted by any small changes, for instance if a small country introduced any new regulations. This can negatively affect the Bitcoin’s price and result in major loss for the investors.
Until now, there has been six notable drops in Bitcoin since its existence, hence during the course of a whole year, the coin has lost more than eighty percent of its value.
Is There A Chance That Bitcoin Can Become Obsolete?
Throughout history, we have seen that the initial technological iterations don’t always survive in the future. Things like camera, mobile phones, and even social networks went through this process.
A lot are hoping that Bitcoin will not suffer the same fate and won’t be in danger of becoming obsolete. Bitcoin isn’t just a technology, it is also an asset that has monetary value; hence it’s difficult to weaken a network that’s connected to money. There are chances that this theory can be true, since crypto networks are still relatively new.
The Economic Model Of Bitcoin
Bitcoin produces a small quantity of coins in a year until it reaches a certain limit; hence this shows that it was made to stick to a deflationary model and its value will increase over time. This is the exact opposite of the system that is used with regular paper money (fiat money), which can be prone to inflation and is designed to lessen the value of a currency.
What Type Of People Are Eligible To Purchase Or Invest In Bitcoin?
Purchasing or investing in Bitcoin can be risky and is known to be volatile; hence the ones who are thinking about buying a Bitcoin should be cautious before taking the next step. Not every investor is eligible to purchase a Bitcoin and shouldn’t take that leap. On the other hand, traders that have a diverse portfolio and who invest a small percentage into BTC as a hedge, are much more eligible for investing in Bitcoin. Moreover, people who have smaller financial responsibilities, like no mortgage, no family, no college debt, etc., can also think about investing in Bitcoin. Plus, individuals that have a source of income that’s stable and they can easily afford to make little investments each month are also eligible when it comes to buying or investing in Bitcoin.
So, is it too late to buy Bitcoin or invest in this cryptocurrency? Well, there isn’t a correct answer to that question. At the end of the day, it depends on the investors’ financial status and how much they are willing to risk when they put their money into Bitcoin. It is very hard to predict how profitable an investment made in Bitcoin today would actually turn out in the short or long term. Hence, it is advised to do a thorough and comprehensive research in this subject matter. Decide if you will be able to support any losses once you take part in BTC trading or holding. In fact, talking to other investors might also help in understanding if investing into Bitcoin is worth it or not. You should make your final decision based on your research and your current financial status.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.