Is Now a Good Time to Buy BitCoin?
The volatile nature of BitCoin has seen a significant drop in BitCoin prices, currently, BTC is trading at €5,662.22, this sharp drop has left investors wondering whether now is a good time in invest in BitCoin or not.
BitCoin’s current prices are a far cry from its €17,500 peak in December of 2017. However, will BitCoin prices see another surge in value, and if this is the case, is it wise to buy BitCoin now with its current value?
Given the nature of BitCoin it is extremely difficult to predict how to prices of the cryptocurrency will rise and/or fall. If the past is any indication we can expect to see more boom and bust cycles. Meaning that it is highly unlikely that the cryptocurrencies value will plateau, rather we should expect to see further surges and dips.
Short Term or Long Term Investments?
As time goes on, it will become increasingly harder to predict short-term price moves. The time where BitCoin was used as a rag to riches investment is probably over. Do not be surprised if BitCoin’s prices sink even lower. This has happened before, particularly from December 2013 all the way until mid-2016. However, following this downward dip BitCoin saw some of its highest peaks.
Although BitCoin’s prices have dropped, in the real world BitCoin has seen an increase in adoption rates. Several other cryptocurrencies have also started to rise, this leads some to be optimistic, as the more widespread the cryptocurrency becomes, the greater the demand for the tokens themselves. Several institutions and companies have started to look into cryptocurrencies as an effective tool for their business strategies. While this is all well and good, the pragmatic answer is that adopting a new currency takes time in order to be used effectively. As result, while BitCoin is becoming more and more accepted one must keep in mind that in order to make full use of the currency significant time and investment is necessary.
BitCoin use in the real world
Having said that, several investors are looking to buy into BitCoin for the long haul. The time has come for people to invest in BitCoin using long-term strategies. Trying to play the short game will likely result in failure, it would be smarter to invest gradually so as to take advantage of the current discounted price but still have the option to save money in case prices drop further. It is safe to say that BitCoin has entered a new phase, one which rewards long-term investment and punishes those who invest and expect to make a quick buck.
It is important to keep in mind that digital currency markets are much smaller when compared to other traditional asset markets. This, coupled with increased adoption rates, suggests that there is significant potential for growth within the market. Keeping up to date with the technological developments behind BitCoin would also help to attempt to predict trends. As Blockchain technology continues to grow and the use of cryptocurrencies becomes easier, we can expect to see a rise in the value of the currency.
One final note, the whole scope of BitCoin is that it may one day be used as the currency used in day-to-day transactions. Before this can happen, prices will need to plateau and stabilise. While this still seems a long, long way off it is important to keep this end goal in mind. Ie: This sort of market will not last forever and is not sustainable for a cryptocurrency that aims to be used like conventional fiat money.
As it stands, the road ahead for BitCoin does seem promising, however more twists and turns are sure to follow. These shouldn’t be discouraging, as the cryptocurrency itself has survived these types of dips before and the price peaks afterwards were staggering. Invest wisely and BitCoin might just surprise us once again!