Bitcoin has lost more than 60% of its value since November 2021. So is it a good investment or a bubble? This article explains that.
Every investor strives to have a good understanding of their investment opportunities. You are likely to make risky and regrettable decisions if you do not understand your investment options. And that also applies to cryptocurrencies like Bitcoin. Even though Bitcoin as a form of investment is still little known to many people, you should inform yourself about it in order to avoid simple mistakes.
Bitcoin is a virtual asset and a digital currency. Today, bitcoin is traded alongside other asset classes such as bonds or stocks. You can invest in bitcoin trading even with little experience. Platforms like immediate-edge.co/de/ offer you the help you need to invest in bitcoin trading.
Bitcoin is the most popular cryptocurrency behind which Satoshi Nakamoto stands. Satoshi developed and launched Bitcoin shortly after the 2007/2008 financial crisis. The idea was to create a better alternative to the centralized financial system. Individuals and pundits blamed the financial crisis on big business and governments because of their control.
Bitcoin is decentralized and unregulated. And that means no organization controls bitcoin. The blockchain technology behind bitcoin ensures that many people around the world are involved in the creation and management of bitcoin. Therefore, the risk of a single entity like the government interfering and unnecessarily disrupting Bitcoin is minimal.
Anyone wondering if bitcoin is a viable form of investment should know that bitcoin is a digital asset. In other words, it is only virtual and does not have a physical form like traditional fiat currency. This can make Bitcoin look like just a bubble. But it is far from being the case.
Bitcoin is not a bubble
Bitcoin is not a bubble for several reasons. First: Bitcoin is real. You can buy, hold and transact in bitcoin. For example, you can use Bitcoin to pay for products or services. You can also sell your bitcoin for a profit as there are over 109 million bitcoin users today. And that means bitcoin is something real.
Second, bitcoin has real value and its price is constantly changing, peaking at $68,000 in November 2021. Today, the price has dropped to around $24,100. However, that doesn’t mean it has no value. Other assets may also lose value depending on market dynamics. For example, a company’s stock price may fall at any time.
Bitcoin is a great investment
Now that you know Bitcoin is not a bubble, this article will tell you why it is a great investment. The value of bitcoin tends to be higher than that of other assets. It’s hard to find stocks or bonds that are worth $20,000. But the price of bitcoin can go beyond that. Despite crypto dips affecting bitcoin, the price has risen since its inception.
Additionally, Bitcoin is a great investment due to its security. With the decentralized blockchain supporting it, the government cannot intervene in bitcoin. Therefore, don’t worry about the government causing unnecessary shocks or disruptions to your bitcoin investment.
Finally, Bitcoin is a sustainable investment. You can buy your bitcoin and keep it for as long as you want. You can greatly benefit from it. If you use Bitcoin for a long time, eg. for example a decade, the value of your investment can increase significantly. Bitcoin price is bound to rise and crypto experts expect the price to hit $1 million at some point in the future.
If you are considering investing in Bitcoin, you can. Although the bitcoin price is very volatile, you can get a good profit on your investment. Don’t expect Bitcoin to die anytime soon.