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Is a Bitcoin Investment a Mistake?

by Pragati Shrivastava
Is a Bitcoin Investment a Mistake?

My first investment in Bitcoin was $1,000 back in 2015 when the price was $272.99. I bought approximately 3.2 Bitcoin and when I got started, it was with the help of analysis and predictions from experts on Crypto Twitter and newly sprouting Bitcoin forums. I believed that Bitcoin could disrupt the entire financial system but, at that time there wasn’t much talk of Bitcoin hitting an ATH of $19K in December 2017.

Many investors decided to get started in December 2017, unfortunately suffering heavy losses in January of 2018. In fact, most of them haven’t recovered even 50% of the lost value in the past year. This happens quite frequently in crypto trading and investing. That being said, I like to stick to the principle of investing what I can afford to lose. I stick to a trading strategy with attempts to book consistent profits and minimize my losses whenever I can. If you are experimenting with Bitcoin, I recommend not investing more than one percent (1%) of your net worth. It’s a value that might hurt, but one that you may not regret if you lose it.

Today, I’ve accumulated from 3.2 Bitcoin to 19, spending eight hours a day, seven days a week for the past four years to achieve this. I still feel that buying Bitcoin was one of the best decisions I’ve ever made. The best thing about cryptocurrency is that it’s always a good time to invest in cryptocurrencies. It’s never possible to put a price on Bitcoin and if you regret investing in it before, let me count the reason why you shouldn’t regret it now.

Bitcoin is backed by technology

There is solid technology behind Bitcoin and it is bound to increase in value over time. Bitcoin first gained media attention in December of 2017 during the historic bull run when the price hit $19K level. Captain Obvious might say if the price of an asset fluctuates over 10% within a day, it’s considered volatile. Thanks, Captain Obvious! But, short-term fluctuations don’t imply that an asset is volatile. Bitcoin has insane short-term returns which is quite similar to gambling, not investing.

Is Bitcoin more valuable than other crypto assets?

Bitcoin is the most valuable crypto asset with a dominance of nearly 65%. Crypto experts have said this time and again that in the future, Bitcoin’s adoption may be due to its first-mover advantage and it’s sure to see a price rally when the supply gets constricted. Institutions have shown interest in adopting Bitcoin and this could help the price to rally in 2020 and beyond.

Bitcoin is not a get rich quick scheme

Many investors buy Bitcoin considering it a get rich quick asset, however there are both winners and losers in this game. Bitcoin is not about getting rich, it’s about financial freedom and decentralization. It’s about shifting power from the government to the people. While shitcoiners are in cryptocurrency for money, Bitcoiners are likely in it for the technology and promise of freedom.

Was Bitcoin created for making traders rich?

Bitcoin was created as P2P digital electronic cash to help people transact without the involvement of a third party and at minimal fees. However, Bitcoin’s halving mechanism ensures that HODLers and traders are rewarded with cyclical price hikes before every halving. The next halving is getting closer and 2020 will definitely see a trend reversal that increases Bitcoin’s price to a new ATH. Crypto experts like Anthony Pompliano and John McAfee have suggested that Bitcoin will cross $100,000 by 2021. These predictions are based on their technical analysis and Bitcoin’s inflation.

Bitcoin’s adoption is increasing every day

Several experts have already mentioned that Bitcoin is worth its weight in gold due to the underlying revolutionary technology, Blockchain Technology. The leading cryptocurrency has been gaining traction and number of transactions have almost doubled in 2019. Over 80 percent of the wallets holding Bitcoin haven’t moved their funds since the 2017 bull run and this is an indication that there will be another bull run before the halving. The number of merchants and businesses accepting Bitcoin payments has increased, globally.

Bitcoin is bound to gain value during geopolitical crises

During geopolitical crises – like Brexit, the U.S. – China Trade war, or impeachment of President Donald Trump, investors lose faith in fiat and traditional investments. thus migrating their funds to cryptocurrencies. Bitcoin gives you an opportunity to be your own bank. Bitcoin provides people with economic freedom and allows them to be custodians of their own wealth, thus decreasing dependency on banks. It doesn’t matter if the banks shut down or impose capital controls, people can continue transacting using cryptocurrencies. Bitcoin provides an unmatched level of financial freedom and insurance to crypto traders.

When the institutions are in, big money is involved

Social media giant Facebook announced the launch of its digital currency Libra in June 2019, banking giant JP Morgan notoriously labelled Bitcoin a scam and then announced trials of its cryptocurrency JPM Coin. Governments of China, Russia and France are in talks regarding the development and launch of their centralized digital currencies.

A lot has changed in the crypto space throughout 2019 and this may be the best time to buy Bitcoin. Before further investor interest peaks, buy the cryptocurrency and watch it hit new ATH when the space is regulated and the supply shrinks. With every halving, the mining reward is slashed in half, less miners continue mining, and less Bitcoin is introduced in the market. This ensures a shrinking supply, rising demand and high prices.

Institutions have been buying in, to get the most of cryptocurrencies before they become commonplace. Fidelity opened a cryptocurrency custody service in early 2019, and found that 43% of institutions want to add cryptocurrencies to their portfolios. This is big because the demographic that allows institutional investors to control their money is the same demographic that has shown resistance in entering crypto markets. If institutional investors decide to move their Assets Under Management from bonds, or gold, to Bitcoin , the growth would be unparalleled.

In fact, a lot of the recent growth and maturity that we’ve seen in the Bitcoin ecosystem has come as a result of institutional investors entering the space with big capital. In the past, lack of liquidity was cited as one of the main reasons institutional investors steered clear of digital currencies and now it seems like the market is starting to provide this liquidity organically.

With positive prospects for Bitcoin year on year, there has never been a better time to be in cryptocurrency and there is no reason why an average investor should regret buying Bitcoin. Whether you bought it at its ATH or dips, you are in for an exciting ride, and the returns will be better than you can expect, it is only a matter of time.





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