One major query for prospective Bitcoin investors is: is Bitcoin stable? In truth, Bitcoin’s price has fluctuated since its inception, having been home to both significant gainers and losers. What makes the market so interesting is that the world is continuing to figure out the intrinsic value of Bitcoin, and whether it can be a viable worldwide currency in the future.
Since the Bitcoin boom of 2017, the price stagnated until 2020-2021, where the price rocketed in the wake of the coronavirus pandemic. Uncertainty around fiat money and the stock market gave way to a rush of investors looking to hedge their money in a different asset class. The limits of our current financial systems are becoming clearer every day, and cryptocurrency offers a potential solution to the high-fees, multiple middle-men and average money growth opportunities for investors. However, in true style, Bitcoin’s price pulled back, dropping to nearly half of the value that it traded at earlier in the year. With a string of Tweets by Elon Musk and headlines about restriction in China, the market became bearish and sold off some of its holdings.
Despite this retraction, the potential of Bitcoin to offer a seamless new-world financial solution remains intact. The technology has not changed, and the same flaws in our current system pertain. With this in mind, the question on many people’s lips is: is it the right time to buy bitcoin?
Whether or not now is the right time to buy Bitcoin depends largely on what type of investor you are. If you are a short term trader, then there are multiple opportunities for you that might present as good moments to buy in. Given the rapidity of the price changes in Bitcoin, everyday traders can generate significant profits by buying in at a range of different price points. If, however, you are an investor who has adopted a more long-term strategy, then the answer to whether now is the right time to buy might be a little different, and will depend on what the price of Bitcoin is forecast to look like in the years to come.
Given the heights of Bitcoin’s price earlier in 2021, we are currently presented with a potential buying opportunity, as the currency continues to pose the same potential benefits to wider society as the years go by. If Bitcoin is eventually adopted as a worldwide economic currency, then buying now may end up being an intelligent investment for many long-term onlookers. As more mainstream governmental and commercial bodies begin to acknowledge the benefits of the Bitcoin and blockchain system, the price will likely continue to rise in the long run. For instance, if Bitcoin were to reach $500,000 in the next 20 years, your investment now would make you a wealthy customer. Having said this, we always advise that people should look to invest what they are willing to lose, due to the volatility and uncertainty of the market.
If you are looking to buy Bitcoin, Australia has a range of secure dealerships and vendors who will help you along the way. It is important to thoroughly research the market and obtain adequate guidance when making these financial decisions.
