Bitcoin (BTC) is continuously making headlines across the globe due to its falling price.
But would you determine BTC based on these short-term variations?
Bitcoin has come a long way since it was introduced into the market. You can see many people becoming billionaires in modern times, thanks to their investment in BTC.
Bitcoin like other cryptocurrencies is volatile and its value fluctuates quickly. The current fall in its value does not mean that BTC is coming to its end but presents a wonderful opportunity to buy more BTC.
Let us understand whether BTC is a sound investment for the future or not.
What is Bitcoin?
The concept of crypto is not that complicated. After all, we all know how to transfer money online from one bank account to another.
Bitcoin is a digital currency that acts as money and a form of payment. Based on blockchain technology, BTC uses peer-to-peer payment methods.
The following points will further elaborate on Bitcoin:
- BTC uses blockchain technology and sends data in cyberspace.
- BTC is highly profitable because its supply is limited.
- Each BTC is mined.
- You can purchase BTC through a crypto exchange like Coinbase.
Carl Runefelt, alias, The Moon, is a global crypto leader who believes that BTC is a revolution and will soon replace fiat or traditional currency.
He says, “The best reason to invest in Bitcoin is the absence of physical institutions, which enable people to make transactions in Bitcoin with ease.”
Why has BTC Dropped?
Crypto is volatile and its value can go up and down at any time.
Bitcoin has a turbulent history; it has gone through several boom-and-bust cycles in the past.
Carl says, “Looking at Bitcoin in the short period defeats the purpose of what BTC is. Bitcoin is a long-term solution to a broken financial system, and I think in the next five years or in the next 10 years that is the kind of time horizon I have when I look at BTC,”
BTC price hits a 16-month low and is currently traded at $27,138.
The recent downfall is caused by:
- Uncertainty in the US and UK markets due to rising interest rates.
- Speculations that Russia could ban cryptocurrency.
- Illegal crypto transactions through China.
Is BTC a Safe Investment?
Crypto may be a promising investment if you utilize a proper trading strategy.
Bitcoin is volatile but if your investment is based on facts and not hype, you may earn a lot.
Global crypto leader Carl Runefelt says, “I am very confident that this will be a very good investment. I believe that Bitcoin is not only going to go to $500,000, I think that BTC is gonna go to five million dollars per BTC in today’s money. Obviously, with inflation, BTC could go to trillions of dollars per Bitcoin.”
Before you invest in BTC, you should follow the following steps:
- Do your market research to understand crypto trends.
- Study the recent BTC trade charts.
- Only invest what you can afford to lose.
- Ensure that you have money in the backup.
Once you build your knowledge about the crypto market, you will be in a better position to decide.
Bitcoin Dip – A Blessing in Disguise
The price of BTC has increased incredibly in the last few years. A single Bitcoin might be out of your reach.
Carl on his YouTube channel, The Moon, says, “I think Bitcoin has done incredibly well in the past one year. You can see just like a little bit more than a year ago BTC was trading down at $3,000. Now, it is more than ten times higher.”
So, when the value of BTC is falling, instead of panicking, this is a fantastic opportunity for you to accumulate your wealth in Bitcoin.
At a lower price, you can purchase more Bitcoin.
BTC has successfully bounced back in the past after such downfalls. Once Bitcoin will rise again, your returns in crypto will increase immensely.
Carl believes, “When Bitcoin is going down, I feel I would not say happy, but I feel comfortable because it is nice to be able to pick up even more BTC and that is the thing if you are bullish on an asset, you find yourself hoping for lower prices instead of higher prices because you can get more of it.”
So, this is the right time that you should buy more BTC to increase your wealth in the future.