Anyone interested in cryptocurrencies is aware of the significant losses Bitcoin has shown in the last few weeks. At the time of writing, Bitcoin has a price of $30 459,90, and it was not so long ago when the price of the cryptocurrency was almost $70,000.
So, is it the time to back down? Is this the end of Bitcoin?
While many people ask these questions, we think that the answer is definitely NO. Here are some reasons for us to believe that after the fall will come a significant rise up.
Cryptocurrencies and their main purpose
We shouldn’t look at crypto as a great way to make some short-term investments and profits. They are much bigger than this.
Bitcoin was created as an asset to beat the financial system. Its aim is to replace it with a transparent, predictable and much more secure asset.
While the aim is really hard to achieve and the enemy is very strong, we can see that Bitcoin is succeeding, and even faster than it was planned.
Today Bitcoin is a legal tender in some countries, banks and organizations are adopting it, and it is worth much more than it was expected to.
Of course, there are still some enemies of cryptocurrencies, but it is just a matter of time for Bitcoin to overcome all the obstacles.
The inflation leaves us no choice
The dollar is shrinking due to inflation, the stock market is plunging and even gold is stagnating. Bitcoin starts to seem like the only choice we have, to put our money in.
Of course, Bitcoin has many advantages as well as many risks surrounding it, which makes it so hard to choose it as an investment asset.
Trends
As we know, every few years the issuance of new coins gets reduced and limiting the supply leads to a higher demand and the prices continue to go up.
If we look back at Bitcoins history we’ll see that it’s been from 1000 to 200, from 5000 to 2000, from 20 000 to 3 000, and now from almost 70 000 to 30 000. Clearly, there is some trend, and we have a reason to believe that the price of Bitcoin will reach new unseen highs.
Rarity
One of the reasons for gold to be so valuable is its rarity. Same with Bitcoin.
It is rare, and it will become much rarer in the future. There will never be more than 21 billion coins, and there is slightly no chance that anything better will be invented anytime soon.
Access
There are still people, around 2 billion to be more specific, that have no access to banking services. Bitcoin makes it possible for them to have access to their own bank and finances.
For example, people living in Africa or Latin America started transferring their cash into cryptocurrencies, and it is a big deal for them.
The freedom and independence Bitcoin brings will hardly be replaced with anything else.
Adoption
Only 2% of the world population owns Bitcoin, so buying now still makes you a part of the early adopters' community.
While some people think they have already missed the opportunity to invest in Bitcoin, the truth is, this is just the beginning. Actually, there is a chance to regret it, if you choose not to buy Bitcoin.
Conclusion
It is not a secret that Bitcoin, just like any other cryptocurrency, is volatile. While there is a high chance for it to become the most valuable asset, there is also a chance for the exact opposite to happen.
Our advice here, for anyone considering making an investment in cryptocurrencies, is doing your research and verify anything you read, and of course never invest more than you are willing to lose.
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