Is Bitcoin a good investment, or do the risks outnumber the benefits? This is a question that all cryptocurrency investors should ask. Bitcoin, in fact, has become the face of cryptocurrency. Investors are having second thoughts as volatility in the crypto market reaches new highs.
Do You Think Bitcoin Is a Good Investment?
Bitcoin is the face of digital currencies that are not centralized. In addition, in the cryptocurrency market, it is the gold standard for expectations. You should expect other cryptocurrencies to follow Bitcoin’s lead if it starts to fall in value. There are some exceptions due to social media-fueled trends and government crackdowns, for example.
It’s evident that the success or failure of Bitcoin affects everything and everyone in the crypto ecosystem. Is Bitcoin, then, a sound investment or a ticking time bomb?
This is a topic that will continue to dominate discussions in the investment community. Many traditional investors believe that cryptocurrency is not a viable investment option. Others feel it is the way all transactions and wealth will be done in the future. As you can see, there is a significant gap in the market. And the chasm isn’t closing any time soon.
One thing is certain: Bitcoin and other cryptocurrencies have proven to be quite profitable for many investors. The amount of support is also steadily increasing. As a result, crypto isn’t going away anytime soon, and Bitcoin will remain the most popular digital currency. Not even Dogecoin, Litecoin, Stellar, or Ethereum.
It makes no difference the criteria you apply. In terms of market cap and individual coin appraisal, nothing in cryptocurrency compares to Bitcoin.
History of Bitcoin Prices
Is it a good time to invest in Bitcoin right now? For more context, let’s look at its pricing history.
Bitcoin was first introduced in 2009. But it wasn’t until 2011 that it surpassed the $1.00 level. Over the next two years, it stayed quite steady. However, Bitcoin made significant progress in 2013.
It started the year at $13.40 and concluded it at $744.17. In fact, in November of that year, it surpassed the $1,000 threshold. Within the crypto community, 2013 has been known as the “Year of Bitcoin.”
Throughout the decade of the 2010s, it continued to rise at a rapid pace. Bitcoin was worth $9,545.08 at the conclusion of the decade.
During the peak of the COVID-19 pandemic, there was an eruption of crypto fever. The charge was led by market volatility, social media, and public opinion. Bitcoin reached an all-time high of $64,828.14 in April of 2021.
However, this was short-lived, as Bitcoin began to lose value the next month until plummeting in June. For the first time since January 2021, it is presently trading around $30,000 per share.
This is owing to China’s recent crackdown on digital currency. The Chinese government has ordered crypto miners to cease operations, which has resulted in a crypto meltdown. In just three days, the whole crypto market lost more than $400 billion in value.
However, this does not mean that cryptocurrencies are doomed. It will, if anything, rekindle a renewed push forward. Is Bitcoin a sound financial investment? It’s possible that now is the best time to get in before it regains traction.
Investing in Cryptocurrencies
The cryptocurrency market is as volatile as any other investment. The stakes are tremendous, but the potential benefits are much higher.
So, is Bitcoin a decent investment or a doomsday scenario? It is currently going through a difficult period. However, Bitcoin will continue to dominate the crypto industry, and you may want to consider buying in while the price is cheap before it climbs again.