For most people, cryptocurrencies became a thing in 2017 after Bitcoin, and several other cryptocurrencies reached their all-time high. However, cryptocurrencies have been around for eight years prior to the Bull Run of 2017 when the Bitcoin price surged to $20,000.
The Bitcoin price has dropped by more than 50% since then, and most people now think if it is too late to enter the Bitcoin train. There are several things causing concerns for most people who desire to venture into cryptocurrencies now.
Major Concerns for Potential Investors
There are several reasons why some potential investors are having doubts regarding investing in Bitcoin. Here are a few significant concerns.
Legality in most countries: the legal nature of Bitcoin in most countries around the world remain unknown. Some governments such as China, India, and a few others continue to roll out regulations that make it hard for their citizens to access Bitcoin. With such restrictions from governments around the world, investors are right to be concerned about the future of Bitcoin.
Lingering Bear Market: since the all-time high of 2017, Bitcoin has found it hard to regain that price. It is currently down by 50% from its all-time high, and some investors are pessimistic about its chances of climbing to that price again.
Exchange Hacks: billions of dollars have been stolen from cryptocurrency exchanges by hackers since Bitcoin came to light. The increasing number of hacks make it tough for potential investors to decide as some might think of losing their money when they invest in Bitcoin and other digital currencies.
Poor Knowledge: one reason most people don’t pay attention is the relatively weak knowledge and representation of cryptocurrencies on mainstream media. Several studies show that millennials and the younger generation understand cryptocurrencies. However, the older generation finds it hard to understand how Bitcoin works. This makes it tough for them to invest in Bitcoin.
Despite all the challenges facing the cryptocurrency sector at the moment, investing in Bitcoin remains one of the best investment options at the moment.
Why You Should Invest In Bitcoin Now
Here are a few reasons why you should invest in Bitcoin today.
The cryptocurrency sector remains in a bear market. As an investor, you know that the best time to buy an asset is when the prices are low and sell when the price hikes. Thus, the fact that the Bitcoin price is down by more than 50% from its all-time high makes it the perfect time to buy Bitcoin. When the Bull Market returns, you stand to make substantial profits from your investments.
High Returns on Investment
Bitcoin has perhaps the highest return on investment over the past decade. Since the start of the year, BTC price is up by 25%. This is a significant gain, something you can hardly find when you stick to the traditional investment options like stocks, mutual funds, and T Bills. Bitcoin remains one of the best investment vehicles to get spectacular gains within a short period.
Cryptocurrency prices are driven by events, and Bitcoin has several exciting things about to happen this year. The mining halving is set to occur in May this year. If history is anything to go by, then the Bitcoin price could surge after the mining halving event. The event was crucial to the Bull Runs in the past and it could pave the way for another Bull Run. The scarcity of Bitcoin could see it become more valuable and that is a good thing for investors.
If you are worried about Bitcoin usage, then you shouldn’t be. Bitcoin has been gaining widespread adoption at an alarming rate over the past few years. In 2013, only 1,789 merchants were accepting Bitcoin. The figure has increased to nearly 20,000 merchants by the end of last year. This indicates a growing adoption of the cryptocurrency as more people are using Bitcoin and other cryptocurrencies to pay for goods and services in all parts of the world. As more people understand the value of Bitcoin, its importance and subsequently, its price will continue to spike. There is a growing market for Bitcoin at the moment and there are several ways for demand to increase over the coming years.
The entry of Institutional Investors
Many believe that the entry of institutional investors will help push the Bitcoin price higher. Bitcoin ETF is underway to be launched while we already have Bitcoin options and futures contracts. The entry of institutional investors through Bitcoin ETF and other asset classes will make the cryptocurrency even more valuable. This would drive up the price and benefit the early investors of the leading cryptocurrency.
Easy International and Local Payment
Another reason why you should consider Bitcoin is because it has made it easy to pay for goods and services to all parts of the world. Previously, it takes days to conclude cross-border transactions. However, Bitcoin has breached that gap, and you can send money to people in other parts of the world within a few minutes. You can make payment worth thousands or millions of dollars for a minimal amount of fee compared to what you can get when you use traditional banks or financial institutions. This makes it a very valuable cryptocurrency as it is used for large transactions by an increasing number of people.
Privacy and Anonymity
More people are seeking privacy and anonymity in various aspects of their lives, and Bitcoin provides it when it comes to payment. Bitcoin is different from traditional banking as you can pay for goods and services anonymously, making it tough to get repeating adverts as you are making payments anonymously.
Although the Bitcoin price is some way off from its all-time high, it has been delivering incredible gains to investors over the past two years. Bitcoin remains one of the best investment vehicles available at the moment, and it could rise higher over the coming months and years.