Marking the beginning of the journey, the cryptocurrency market took a plight of huge popularity and today it has a market of approximately $2 trillion. Bitcoin (BTC) which of the first cryptocurrency in the market not only takes the crown of the oldest Digital Currency but is also the most traded and popular one as well with about $750 billion in markets under its capture. Although there are multiple complications about dealing in Bitcoin, you can first check how Bitcoin adds to your existing portfolio, what can the future of Bitcoin be, and what are the risks involved in crypto trading especially with Bitcoin.
Bitcoin’s value is perhaps synonymous with volatility. Ever since its launch in 2009 Bitcoin’s value exhibited an extremely volatile nature with steep price drops to a sudden surge in the value of up to $69,000 in November 2021. However, its journey from $1000 value in 2017 to 2021 was overall bumpy. However, in 2022 it witnessed a plunge in price, with a drop to $35,000. But throughout this whole time, BTC volatility could not hold back the popularity of Bitcoin.
Reasons Supporting Bitcoin Investments
Bitcoin investment has grown to be the next big thing going around the world with cryptocurrency trading already taking over the frequency of new generation trading. Reportedly, Cameron and Tyler Winklevoss are known to be the first Bitcoin billionaires, with a holding of approximately 100,000 coins. Micheal Saylor, the co-founder of and CEO of Microstrategy one of the world’s reputed business intelligence firms believes in the high prospects and future of cryptocurrency as the best investment of the future. Moreover, in 2021 Microstrategy is known to have purchased 1,434 bitcoins for about $84 million. There are multiple regulations regarding the usage and transaction in Bitcoin, and various countries have various roles to play as in many countries crypto is banned and allowed in many.
Liquidity. The growing rate of fast processing trading platforms, trading tools on, exchanges, and easy-to-access online brokerages have made a cryptocurrency investment convenient. These trading platforms and exchanges allow one to easily trade Bitcoin for gold or cash. Moreover, the exchange or transaction charges are also low. The high liquidity of Bitcoin makes it a top choice among investors. Besides you can easily trade Bitcoin while purchasing because many companies around the world in many countries accept Bitcoin as a payment module. The asset should possess the ability to be converted into cash when there is a demand. Moreover, everyday there is market complication and the market is also becoming competitive. Along with that, the forex markets are liquid markets and they operate round-the-clock but Bitcoin is less liquid than other assets and it gives you better return value.
New opportunities.According to many billionaires, financial experts, and digital currency traders, the potential of Bitcoins is too high compared to any other digital currency. “The most knowledgeable educators in the space are predicting $100,000 Bitcoin in Q1 2022 or sooner,” as predicted by Kate Waltman a specialist in crypto and a New York-based certified public accountant. Therefore, experts look up to great opportunities and scopes with Bitcoin. Even Kiana Danial, the founder of Invest Diva and author of the book “Cryptocurrency Investing For Dummies” thinks “what I expect from Bitcoin is volatility [in the] short-term and growth [in the] long-term,” speculating the crypto market.
Even though it might sound weird but is true how the cryptocurrency investment frenzy is taking over, like Kevin O’Leary to CNBC’s Jim Cramer, all have accepted preferring investment in Bitcoins instead of a Vegas trip. Besides the volatile nature of Bitcoin makes it an addiction for many to constantly check out the market and be with the wave.
Besides, it is a fact that Bitcoins are in limited supply. While the supply limit of Bitcoin is @1 billion already more than 18 billion are in circulation which is why the demand for this digital currency is always at a good hike in the market. Besides if one follows the crypto market, Bitcoin has always been in the top rank for its market value with BTC being counted amongst the most traded cryptocurrencies.
Now Bitcoin has come to occupy a large share of the market, and over 2022, the future of any type of cryptocurrency looks good in the overall profit and return perspective.