There are always people looking at the current price trend of Bitcoin and other cryptocurrencies. As all markets continue to lose value, it would seem there is no real reason to buy Bitcoin right now. At the same time, opportunities like these do not come around all that often. With the right information in hand, a well-weighed decision can be made accordingly.
The Bitcoin Facts Plain and Simple
Regardless of the current Bitcoin price, it wouldn’t necessarily make a lot of sense to invest in the world’s leading cryptocurrency. After hitting over $19,500 a few months ago, the price has now collapsed to roughly $3,000. On paper, that looks like the asset has run out of steam, even though there are plenty of solid arguments to buy Bitcoin now. After all, these low prices may not remain in place all that long.
The technical aspects of Bitcoin have not changed despite the negative pressure. Unlike some other cryptocurrencies on the market with no supply cap, there will only be a maximum of 21 million Bitcoins by 2,140. The actual supply will be a lot lower as well as several thousands of BTC have been lost over the years for a wide variety of reasons.
Additionally, Bitcoin is still useful as a currency. Although it is primarily an investment and speculative vehicle according to the media, it is evident there is some transactional value. After all, Bitcoin’s network sees the highest value transferred of all cryptocurrencies on a daily basis. That shows the currency is being used, although not as widespread as most people would like to see.
Despite these promising technical aspects, finding the right momentum to buy the dip remains challenging. For those who do not expect immediate profits, any time is a good time to buy. Depending on one’s patience, the investment will repay itself sooner or later. Those who keep a long-term strategy in mind will always reap the rewards in the end.
It is also worth noting it has become significantly easier to buy Bitcoin over the years. Whether it is through traditional exchanges, ATMs, OTC markets, brokers, or P2P platforms, the options are virtually limitless. There’s also growing demand from institutional players, How that will affect the price over the coming years, is rather difficult to predict. These traders may not get exposed to Bitcoin directly but rather use intermediary investment vehicles.
As is always the case when contemplating a potential investment strategy, getting all of one’s ducks in a row is the top priority. There is a lot more to Bitcoin than meets the eye especially when it comes to the technical side of things. Scarcity creates demand, but Bitcoin is also designed to be a transactional currency first and foremost. That combination alone can yield some interesting market momentum over the coming years.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.