The world’s first and most well-known Cryptocurrency – Bitcoin, has seen ups and downs in 2022. The coin was able to surpass the previous record high of US$ 61,000 in March. But in May, Bitcoin saw significant changes and started to decline in value since then. The price of BTC fell precipitously, almost reaching $22,000 at the time of writing. So now, the most common question investors are asking right now is – Is it too late to Invest in Bitcoin?
Even if it’s not too late, can Bitcoin be purchased now, and can it be cashed out in the future? Read this article to know – Is it too late to invest in Bitcoin? But, first, here’s a quick overview of Bitcoin.
What Is Bitcoin?
Before we move forward, let’s first discuss what Bitcoin is? Bitcoin (BTC) is the world’s first Cryptocurrency built on a blockchain. Under the pseudonym “Satoshi Nakamoto,” a person or group of persons first invented Bitcoin in 2009.
This Cryptocurrency operates on a decentralised network and makes use of blockchain technology, which processes transactions and logs them into a network of computers.
As a decentralised currency, Bitcoin and other crypto coins are not controlled by any central authority, such as central banks, regulators, etc. It is a peer-to-peer cryptocurrency, which means that all exchanges take place directly between identical, independent network users without the use of a middleman.
The most notable benefit of Bitcoin is that it was the first Cryptocurrency to enter the market and is presently the most valuable Cryptocurrency in terms of market cap.
With millions of users investing in, trading, and utilising Bitcoin, this digital currency is expected to see further growth in the future.
Reasons Why Should You Invest In Bitcoin:
The entire crypto market is full of unpredictability. The market is so volatile that if one buys cryptocurrencies at the highest price, their investment may decline if the price drops. That’s the reason why the internet has flooded with searches like Is it too late to invest in Bitcoin?
So, to sort out the things, here are some reasons why it might be a good idea to invest in Bitcoin right now. However, before making a final decision, it is necessary to conduct your own research.
Continuous Adoption by Institutions
Bitcoin has already shown to be a significant store of wealth, even if it never progressed toward being a means of exchange. But it’s still a long way off from fulfilling its original promise of becoming “digital gold.”
Given that the market value of gold is around $9 trillion, Bitcoin’s value may increase by a factor of ten without surpassing that of the precious metal.
Individual and institutional investors are interested in investing a small percentage of their portfolios in digital currency. The low correlation between Bitcoin and other financial assets makes it a good option for diversification.
Additionally, there are now a lot of financial products focused on Bitcoin available, making it simple for people who don’t feel comfortable directly holding the Cryptocurrency.
According to Cathie Wood of ARK Invest, the price of Bitcoin would reach $500,000 per coin if institutional portfolios kept 5% of their total investment in digital assets.
Normally, we don’t give much credence to her outlandish predictions, but we don’t think this one is ridiculous. Of course, it could take several years for Bitcoin to reach this position. Still, there’s no doubt that it has the potential to become a generally regarded, no-brainer portfolio addition in the crypto space.
Bitcoin’s Real World Use Cases:
If you’re still confused about Is it too late to invest in Bitcoin? Here are its real-world use cases. As we mentioned above, Bitcoin is increasingly seen as a reliable store of wealth, but it also can function as a medium of exchange in actual transactions.
The volatility of this asset class is still high, which is why many Bitcoin critics believe the currency will never be really useful. However, its value in underdeveloped nations is clear.
According to Statista, India received $83 billion in remittances from overseas workers in 2020, making it the largest recipient of such payments. However, according to the World Bank data, the average charge for sending money to India for a $200 transaction was 5.2%.
Additionally, the percentage charge increases as the dollar amount decrease. This situation simply doesn’t make any sense for the decentralised finance and economic world.
This digital asset provides a viable solution. As much as $4.3 billion might leave money-transfer companies and end up in Indian individuals’ pockets since virtual currency can cross borders for almost no cost.
For these folks, the immediate economic impact may drastically change their lives. Of course, everyone needs access to a smartphone and fast internet. But you can see how Bitcoin may substitute expensive financial intermediaries, which are really a levy on people in poorer countries.
Expanding Infrastructure for Goods & Services
With the required technological infrastructure and fundamental demand, Buying Bitcoin and other top cryptocurrencies has become extremely easy. For instance, it has become simple to buy and trade Bitcoin, thanks to crypto exchanges like XBO.
Additionally, Coinbase allows users to spend bitcoin at regular stores and receive cryptocurrency rewards thanks to the company’s Visa debit card. And with its extensive payments network of more than 400 million active accounts, PayPal unveiled a “Checkout with Crypto” option in March 2021.
To increase acceptance, smooth on-ramps into the Bitcoin network must be created. Additionally, the focus of Jack Dorsey life’s work as the creator and CEO of Block is the advancement of Bitcoin. The name change of his business from Square to Block suggests a potential future concentration on blockchain technology.
The less well-known parts of Block that focus on cryptocurrencies are TBD and Spiral. The former is working on developer kits to enhance Bitcoin wallet capabilities, while the former intends to create a decentralised crypto exchange to transfer fiat cash to Bitcoin.
You might feel like you’re late to the party, considering how profitable Bitcoin has been to possess over the past several years. So, if you’re still wondering – Is it too late to Invest in Bitcoin? It may still be an excellent addition to a well-diversified portfolio in 2022.
Bitcoin’s Profit Potential
As mentioned earlier, the crypto market is full of unpredictability and volatility. If one purchases them at the maximum price, their investment may lose all of its value if the price falls. But inherent volatility may be mitigated by strategies including dollar cost averaging.
If we look out and consider the bigger picture, Cryptocurrency has experienced tremendous growth in recent years, especially when considering the most recent year.
It is simple to understand why there are so many people interested in cryptocurrencies right now, given their spectacular increase when comparing Bitcoin to other Alternative Investment.
BTC’s price increased by 60% in 2021, while other assets like gold, stock market, bonds, and real estate either had weaker increases or a decline in value. This doesn’t even compare to other outstanding increases that other cryptocurrencies have had in their early stages. A once-in-a-lifetime opportunity is the potential to make such a significant profit in a short period.
Bitcoin’s Value Down From Its All-Time High
There may not be a better time to invest in Bitcoin than today because they are currently on sale. The cryptocurrency market is just another form of the stock market. As of now, Bitcoin has lost approx 70% of its value since its all-time high in September past year.
Big dips like these are not that uncommon, as Bitcoin’s history shows, yet Cryptocurrency has constantly managed to reach new highs. The current sell-off may be a time for you to test the market if you are interested to invest in Bitcoin.
Pros and Cons of Investing In Bitcoin:
Take a look at the pros and cons of investing in Bitcoin to determine Is it too late to invest in bitcoin or not?
|Crypto Is Way Down From Its Recent Highs||Unregulated and unbacked,|
|Protection From Payment Fraud||Governments Are Cracking Down, which leads crypto prices to cascade downwards.|
|Diversification, Greater Liquidity||Risk of Cyber hacking|
|Immediate Settlement, International Transactions.|
Is It Too Late to Invest in Bitcoin?
Despite the ongoing downtrend and decline in Crypto’s price, Bitcoin’s future looks very bullish and will continue to be one of the major players in the crypto industry.
The year 2022 saw a significant increase in the number of wallets that had large quantities of various new coins held in them. It indicates that more people are looking forward to making long-term Bitcoin investments.
According to Dr Ross Stevens, researchers at New York Digital Investment Group believe increasing fundamental demand combined with a fixed supply and automatically declining supply growth make a compelling case for Bitcoin as an alternative investment for institutional investors. In addition, blockchain networks and currencies can readily endure skyrocketing prices increase and rapid adoption.
The world’s largest organisations and businesses have also included cryptocurrencies in their offerings. Now, customers may purchase and store cryptocurrencies using PayPal. In addition, even some Wall Street businesses intend to make trading in Bitcoin and other cryptocurrencies possible on their exchanges.
A prime example is the COVID-19 pandemic crisis. Even now, COVID-19 and its economic effects are a problem for the entire world. Yet, despite its recent fall, bitcoin seems to grow steadily in the coming years.
Many analysts continue to hold out hope that Bitcoin’s continued existence as a digital asset is the reason why it is not too late to invest in Bitcoin.
Where To Buy Bitcoin?
When you have no clue where to buy Bitcoin, you can start with XBO. The exchange has made it easy for investors to buy crypto.
XBO is a regulated and trusted crypto exchange that provides financial services in all major countries around the world. All you need to do is visit the official website of the exchange and sign up for a trading account with it to start investing in Bitcoins and other cryptocurrencies.
The popularity and value of Bitcoins appeal to a range of investors for its many potentialities and alternative solutions it provides them with.
Therefore, it is not a surprise to say that even the common reader on the internet would be tempted to invest in Bitcoin and possibly be a part of the digital future. So now, we think you have got the answer – Is It too Late to Invest in Bitcoin?
Who Invented Bitcoin?
Bitcoin was created under the pseudonym “Satoshi Nakamoto,” a person or group of persons.
Is Investing in Bitcoin A Good Investment?
Being the most popular and valuable cryptocurrency in terms of market price, Bitcoin poses a good investment for modern investors.
How much Minimum To Invest In Bitcoin?
You can start investing in Bitcoin with as little as $10 and can make more money than you have invested.
Is Bitcoin Real Money?
Bitcoin is a decentralised virtual currency that you can buy without any central authority.
Is Now A Good Time to Invest in Bitcoin?
With a 43% share of the worldwide crypto market, and a price that’s down about 70% from its high, now looks like a good time to buy Bitcoin.