Bitcoin is hovering a little above $10,000. If the surge and the consequent fall of the last month is ignored, Bitcoin and other cryptocurrencies have been in a very tight gap. Notorious for their price volatility, cryptocurrencies have been placate.
Barring a few ups and downs every now and then, the volatility is at one of its lowest. For many people, the low fluctuation of value for such a long period of time may signal that bitcoin has reached in fair price and that there might not be much upside in investing in the same anymore.
We often get asked if its too late to invest in bitcoin. People fear that they have missed the train and there is no point chasing the price now. However, it is our opinion that everyone should hold some BTC in their portfolio. Here are a few reasons why investing in Bitcoin still makes financial sense.
Bitcoin is relatively young (like the Internet in 1990s)
Bitcoin was first introduced in end of 2008 and saw its first transaction being conducted in the start of the next year. A few years down the road, there were cryptocurrencies popping up all over the world on a daily basis. While in the crypto world, BTC might appear so 2010, in terms of currency lifecycles, bitcoin is still very young. US Dollar has been the dominant currency for almost a hundred year and
Compare this to the early 90s for the internet. The online world was changing and many people thought that internet would be mature by the end of the century. We saw the dot com bubble burst happen around the year 2000. Many thought internet hype is over. It was just the beginning.
Similarly, we had crypto bubble burst around 2018. Yet, cryptocurrencies are just starting to capture the potential they possess. It will be years from now that the industry or the sector can be called mature.
Bitcoin has only a limited number of tokens and coins that can be issued. 21 million in total. Ever. This means that as more time passes, the supply will diminish, resulting in increase of the price. This makes bitcoin a deflationary currency rather than inflationary which all fiat currencies are. For long term investment, the opportunity to hedge against inflation will exist for foreseeable future to come.
While blockchain is extremely useful in a wide variety of applications, being used in supply chain, trading and even in the education sector, Bitcoin is maily reserved to financial applications. While there are tons of research papers debating if Bitcoin is a store of value or not, most investors (retain and institutional) are already using it as a store of value. The more it is adopted and adapted for different uses, the more value we will see being added to the network.
Most accessible currency
You might consider bitcoin as something harder to access than say your fiat. However when you really think about it, on a global scale, the only currencies that come close is the US dollar. You cant use a dollar to buy a pizza in Russia or Iran, but you can use Bitcoin. Also, unlike forex markets for currencies, trading of bitcoin never stops. The exchanges work continuously, through the nights, on weekends and holidays. Also consider the fact that there have been any instances where the national currency turned highly inflated overnight and people turned to Bitcoin to store value.
When to buy Bitcoin or other cryptocurrencies?
Buying cryptos like Bitcoin can be hard due to volatility. You cant buy when the buzz is at its highest and expect your investment to be profitable. Irony is that most investors would by definition end by buying when the hype makes a new high. Imagine if could rather use the volatility to your advantage. Ethereum is falling? Let’s buy into the dip. Dash just made a jump? Let’s sell holdings. The profit opportunities are endless. Now imagine if a bot could do that for you. That's where Botsfolio comes in. Botsfolio invests and trades your capital using automation to build you a great long-term growth portfolio while trading for you on short term opportunities. Don’t believe us? Try it for yourself.