People can only make money within their cognition you must be cautious, don’t consider entering the bitcoin market, first, wait and see. If you want to participate, it is recommended to play with 100USD, which is purely a sense of participation.
The simplest thing to hold cryptocurrency and make money with bitcoins is that you don’t need to do anything, buy bitcoins, put them in a cold wallet, and then forget them. Enjoy the compound interest brought by time! It may be three years and five years, ten years and twenty years. It will definitely increase your wealth!
Bull or Bear
In a bear market, if you hold Bitcoin, it does not matter if this cryptocurrency falls, not because the cryptocurrency decreased, but the two-week adjustment is over. When the price rises back, the cryptocurrency price is at a new high, and the account is also at a new high.
Since the second half of 2020, the price of Bitcoin has continued to rise, and the skyrocketing market has made Bitcoin at the top edge. More and more people and institutions are trying to use Bitcoin as an investment method.
According to information released by Bitcoin broker Binance, the number of institutional accounts opened by the company in 2020 has soared by 46%, benefiting from the bull market of Bitcoin, the cryptocurrency market has attracted many retail and institutional to open accounts.
The top cryptocurrency exchange Coinbase recently submitted a listing application to the SEC, stating that from 2018 to 2020, the number of authenticated individual users on the platform has shown a quarterly growth trend. After entering 2020, this growth trend has become more obvious. It is also closely related to the rise in the price of Bitcoin and the increasing interest of more and more people in Bitcoin investment.
Before dipping all of your savings into bitcoin investments, you need to have a sufficient understanding of the object of the transaction. Bitcoin is a risky asset with high volatility. If the risk of appetite is relatively low and cannot tolerate huge fluctuations, then participate with caution
The characteristics of Bitcoin anonymization, borderless, and peer-to-peer payment objectively shorten the link of criminal transactions and increase the difficulty of investigation.
Another potential risk factor for Bitcoin is its creator Satoshi Nakamoto. Satoshi Nakamoto mined 1 million coins in the early days. At the current price of $54,000 per coin, Satoshi Nakamoto is worth about 54 billion U.S. dollars
The security of the encryption technology ledgers is very high. Because of its decentralization, its rise and fall are the response of global investors to increases or decreases.
The consequences of the changes in monetary policy in the traditional system. The over-issuance of the U.S. dollar due to the new crown epidemic has caused the market to doubt the U.S. dollar. This is also a reason for the recent rise in Bitcoin.
A few years ago, Bitcoin and the digital currency were just a concept, after rising to a peak of 18,000 US dollars in 2018, it fell all the way to 3,300 US dollars.
How Do Others Evaluate Cryptocurrency, JPMorgan
JPMorgan Chase elaborated on three indicators commonly used by market participants, namely, the three reasons why the price of Bitcoin may increase significantly.
- According to Metcalfe’s law, the average price of Bitcoin is $21,667 and the value of the network is proportional to the square of the number of users.
- Comparing the global value of gold with the global value of Bitcoin (using its largest supply of 21 million), the valuation of Bitcoin will be $540,814.
- If the global value of the money supply is applied to the largest supply of Bitcoin, its value will be $1.9 million.
Kjell Inge Rokke, the second richest man in Norway and chairman of Aker ASA, also joined the growing list of billionaires who announced their support for Bitcoin. Aker ASA is a US$6 billion industrial holding company that controls construction and petroleum services companies. In a statement, the representative stated that the company has established a division dedicated to investing in Bitcoin and blockchain technology. The division is called Settee AS, with an initial capital of approximately US$58.6 million, and plans to keep its current assets like Bitcoin.
PayPal officially announced that it will acquire cryptocurrency security company Curv as part of its crypto strategy. The transaction is valued at less than US$200 million and is expected to be completed in the first half of 2021. Founded in 2018, Curv provides enterprises with digital asset security technology in the form of cloud services.