“Is Bitcoin worth buying?” This question has been asked since the moment when bitcoin first started to be traded on the exchange. It happened on January 15, 2010, at Bitcoinmarket.com, which still exists.
And now, 11 years after bitcoin was first traded, the issue has gone international. Numerous analysts and experts have appeared, who regularly try to find the best entry points.
In a promotional piece on MC.today, experts at cryptocurrency exchange Currency.com tell us what factors contribute to the fact that bitcoin can be invested in at any time.
Sometimes people actively try to convince us that bitcoin is a bubble that will burst soon. It’s tempting to ask such people if they read the news. Bitcoin as an investment tool has begun to be used by many companies and corporations, media personalities and ordinary investors.
In addition, the beginning of 2021 was a seminal year in the crypto industry. It was at that point that the institutional investors that had been awaited here came to the market. The fact is that the arrival of a large number of them into the industry creates a strong foundation for cryptocurrencies. Digital assets simply will not be allowed to depreciate, because there is a huge amount of investment in them.
Take Microstrategy, which owns more than 92,000 BTC. Considering the average bitcoin price is $40,000, that’s $3.6 billion. Moreover, the company has more bitcoins in its account than fiat currency. That is, Microstrategy has gone completely into cryptocurrency, hoping for profit and that it will be in demand in the future.
There was already a case where Microstrategy issued bonds, the proceeds of which went entirely to buying BTC. This has happened more than once, but the point is different: with its example Microstrategy is setting an example for other companies, which are also starting to direct their investments into the crypto sector. The current investors will not just let bitcoin depreciate, which means they will buy back every collapse.
Invest in bitcoin
2Unprecedented rise and not-so-big fall
It is interesting that new ATH (all time high) was established in 1 year and 1 month after the March collapse, when bitcoin had cost less than $65k. That means, the main cryptocurrency needed a year to grow in 13 times. That figure is impressive.
Of course, there are cryptocurrencies that can give a much bigger profit in a shorter period of time and also cryptocurrencies are good for businesses and their customers. For example, many online casinos connect the function to make deposits via cryptocurrency, which is an undeniable plus. Read more about it in our article about online bitcoin slots history.
A simple example to make profit with cryptocurrencies in a short period of time is Dogecoin, which provided hundreds of “X’s” to its holders in just a few months. But let’s look at things realistically: the Dogecoin story is more of an exception than a pattern. Yes, the profits have been really good, but in recent months the market has stopped responding to news related to this token, causing its price to decline steadily. You can also read about Adds BTC Interest Deposit Service
Here you can make a competent investment portfolio
Also, finding that coin that will enrich you may not always end well. There are many stories of investors finding new and promising coins, and their management simply dumped their token holdings. This led to a depreciation of the asset and the loss of all investment. Crypto exchange Currency.com thoroughly verifies all assets that are going to be added for trading and only after that they become available for users of the site.
Investing in bitcoin is attractive because it is a well-known and the largest cryptocurrency in terms of capitalization. And while the return on investment in bitcoin may be less, it is still much more reliable.
In addition, if we compare the fall to $30 thousand with the previous cryptozyma (decrease in the quotations of cryptocurrencies, when they fall in a long period of time. – Ed), then bitcoin fell from $20,000 to $5,000 in two months. It turns out that bitcoin lost just over 50% of its value this time, which doesn’t exactly fit the cryptozyme description. Moreover, it has already started to recover its positions, having passed the $40k mark.
3Countries begin to use bitcoin as the main means of payment
A little over a month ago, the web was buzzing with headlines like “El Salvador recognizes bitcoin as official tender”. What does this mean? All monetary transactions in the country can now be made with bitcoin: paying taxes, paying salaries, issuing loans, and more. In fact, in El Salvador, bitcoin is now on a par with the dollar.
The IMF has already stated that this innovation will not benefit El Salvador. However, if we recall other statements of the International Monetary Fund, it can be noted that they were rarely positive. But Bank of America said that the introduction of bitcoin as a means of payment would allow El Salvador to double its GDP over the next year.
Of course, El Salvador is not a country that many, especially larger countries with a stable economic situation and political system, will follow. Now it is Paraguay, which is also about to recognize bitcoin as a means of payment. The fact that cryptocurrency will be made a means of payment in countries, even if not the most developed ones, is already a small victory. Bitcoin’s position on the world stage will become stronger if the number of such countries increases. And its price will grow.
4BTC outflows from exchanges
Every day different media and Telegram channels publish such news: “Y bitcoins were withdrawn from cryptocurrency exchange N”. And figures in each article are different, i.e. they talk about different withdrawals of BTC from cryptocurrency exchanges. What does it mean?
The practice shows that when they put much of certain asset to exchange, they are going to sell it. Why else would it be there? There is an opinion that storing cryptocurrency on exchanges is not safe because they are constantly being hacked. But that’s not the case with the Currency.com tokenized asset platform. Preserving the exchange’s customers’ funds is its first task. In addition, the activities of the site are regulated by Decree No. 8 “On the development of the digital economy,” which was signed in the Republic of Belarus. This suggests that the exchange works transparently, so people can not worry about assets.
The exact opposite is also true for BTC withdrawals from exchanges: the more the asset is withdrawn, the more investors show that they are not going to sell it. Bitcoin holders prefer to keep it rather than trade it. This trend only encourages other market participants to become long-term bitcoin investors as well.
Why you shouldn’t wait for the perfect moment
If you weigh all the information, the question, “When is the best time to buy bitcoin?” – the answer could be, “Now.” When you wait for the perfect moment, which should bring you a lot of profit, you miss the planned growth of bitcoin. Bitcoin will reach $20,000 and you can also read an article about it. The crypto industry is evolving, so the more you think about the perfect moment, the more profits you lose.