Bitcoin's meteoric rise to fame has left investors asking if they have already missed their chance. Fortunately, the answer is no.
Despite Bitcoin continuously hitting some low prices in the past couple of months, it now presents an ideal opportunity for those interested in investing in this digital currency.
With the cryptocurrency movement in full swing, it's essential to weigh whether investing in Bitcoin is right for you. To help answer this question, we've composed a comprehensive article that considers past and present market dynamics and estimates its prospects.
A quick overview of Bitcoin
Bitcoin revolutionized currency as we know it by introducing a decentralized digital asset with blockchain technology.
Created in 2009, this cryptocurrency allowed individuals to invest and control their finances securely and anonymously via peer-to-peer networks - free from the oversight of governments or financial institutions.
By completely changing how people operate financially, Bitcoin has created new opportunities worldwide for managing resources like never before.
Bitcoin offers users a world of unprecedented financial freedom. Access low-cost transactions with near instantaneous approval from anywhere on the planet – putting control back in your hands.
The history of Bitcoin's price
Many have pondered the future of investing in Bitcoin but have yet to consider its past performance as an indicator of where it may be headed. By examining price history, one can gain a greater understanding of potential trends that could affect the currency's value in the future.
From 2009 to 2017
Bitcoin's early years were marked by its widespread use in illicit online marketplaces, like The Silk Road, until beginning to gain traction as an investment opportunity due to the growing attention of investors during 2013-2014.
Despite a brief price dip at the start of 2017, BTC saw incredible growth: from $975 on March 25, 2017, to nearly $20,000 on December 17, 2017; this invaluable surge signified just how far cryptocurrency had come since its humble beginnings.
From 2018 to 2021
After taking a hit at the end of 2018, Bitcoin was back with a vengeance in 2019. In only six months, its value almost tripled - from $4,000 to an impressive high of $12,000 by August. The cryptocurrency then enjoyed stability for the rest of that year as it hovered between eight and twelve thousand dollars until December.
At the midpoint of March 2020, disaster struck as Covid-19 rocked global markets and sent shockwaves through the crypto sector. Bitcoin endured its rapid bear market amidst other financial assets taking a tumble, plummeting more than 50% within 48 hours to dip beneath $5k.
After stumbling briefly in 2020, Bitcoin found its stride. Growth accelerated from earlier lows of $30k to a record high at the start of 2021, eventually reaching an unprecedented peak of around $60k by March.
After a roller-coaster ride in 2020, Bitcoin ended the year at an unprecedented high of almost $69,000, making it one of 2021's most remarkable financial feats.
2022 performance
2022 has presented global economies with a stark challenge: unchecked inflation and an imminent recession have investors worried for the future.
As the cost of borrowing money increases, investments have started to diminish. Unfortunately, this trend has caused Bitcoin and other cryptocurrencies to enter a bearish market phase.
Bitcoin has recently experienced a significant downturn due to an intensive focus on alternative projects by those seeking the most promising investments. Large institutional investors like Tesla have even opted to divest from Bitcoin, leading to further loss in value and investor confidence. These events collectively generated adversity for both Bitcoin and its supporters.
The FTX scandal was the proverbial drop of water that made up a tidal wave of adversity for the entire cryptocurrency market. This much-publicized crisis acted as a catalyst and resulted in an influx of selling activity, pushing Bitcoin prices to new lows.
Despite a recent and significant dip, Bitcoin has remained one of the most profitable investments in the last ten years. Supporters are confident that this period of decline is only temporary and predict an eventual resurgence in value - much like what has been seen previously with BTC's history.
The future of Bitcoin
In 2009, Bitcoin entered the global financial arena with incredible enthusiasm, and since then, it has been a force to be reckoned with.
Immediately catching investors' attention due to its potential for appreciating value, many individuals have made considerable investments in this digital currency.
Despite exhibiting volatility along an unregulated market path thus far, experts anticipate multiple sources of fuel that could drive up Bitcoin's already impressive climb over the coming years - leaving little doubt as to whether or not unprecedented heights are still within reach.
Worldwide transactions
As the world of finance continues to evolve, investors are turning their attention toward cryptocurrencies as a viable medium for exchange.
With organizations beginning to recognize the immense potential of blockchain technology in industries ranging from banking and healthcare, there is an increasing need for efficiency, trustworthiness, and transparency - all critical benefits offered by this innovative approach.
Crypto infraestructure
The skyrocketing success of Bitcoin has unleashed a new digital economy: one with its infrastructure and services.
Companies such as Block, Robinhood, and PayPal have pushed the envelope by creating innovative tools for easy access to buying/selling cryptocurrency - thereby opening up opportunities for growth in modern investors' markets. Undoubtedly, this remarkable phenomenon shows no signs of slowing down anytime soon.
Institutional adoption
Investing in Bitcoin offers a unique opportunity for diversifying one's portfolio. Its low correlation to other financial assets makes it attractive and allows investors to protect their investments from uncertain economic climates.
To meet this growing demand, many financial institutions have produced securities geared towards cryptocurrencies, such as ETFs providing indirect exposure, direct holdings of Bitcoin, or even futures contracts based on their value.
So, is it too late to buy Bitcoin?
With investors becoming increasingly drawn to Bitcoin for its reliability, it's no wonder why it has steadily risen to the top of most portfolios. In 13 years, this cryptocurrency has transformed into an indispensable asset class and is expected to remain a market leader in capitalization.
A well-established cryptocurrency, Bitcoin has become a mainstay of the market. Unfortunately, this status quo makes episodes of extreme growth less likely due to its outdated mining process and unexpected popularity among financial institutions. Although acceptance by these organizations offers some benefits, it appears that four-digit hikes are now out of reach for Bitcoin's future price development, but that doesn't mean it won't reach its ATH (and beyond!) again.
With Bitcoin's massive popularity and bright outlook, it may be an ideal choice for investors wishing to enter the world of cryptocurrencies.
