Is it the right time to invest in Bitcoin?
The world is waking up to a new reality. A reality that is both frightening and exciting. A reality that is pregnant with all kinds of possibilities. A reality that holds the promise of nothing short of a revolution. And like most revolutions, it started unobtrusively; almost unknown, unseen and unsung. We are talking about Bitcoin.
The rise of Bitcoin
When Bitcoin was introduced in a now-landmark paper in late 2009 by “Satoshi Nakamoto,” the world was too busy to pay heed. Come 2018 and Bitcoin has garnered more clout and repute than any innovation worth its salt, till date. With more than a 1000% gain in value within 12 months, this new asset class has taken the fancy of investors and speculators alike and has brewed quite a storm in the teacups of traditional economists. While some voices whimper about how Bitcoins are a “flash in the pan” and how they and their newer crypto brethren are bound to vanish without a trace, other, more powerful voices claim that cryptocurrencies will rule the world of the future. This makes investing in this exciting asset lucrative.
But with all the capricious volatility that the value of Bitcoin has shown in the last few months, going as high as $19,000 to meandering at around $9000 in the past month, the question most frequently asked is “Is it the right time to invest in Bitcoin?” The answer is a resounding “Yes!”
Nevertheless don’t put all eggs into one basket, Bitcoin Funds are the best way to diversify risk and demand for professional fund management like Pecunio’s is rapidly rising.
The time is ripe!
While some self-proclaimed pundits may deem this fall in value of almost 45% as the end of the “Bitcoin bubble,” commonsense tells us that when an asset is bearish, it is time to buy. For all its fanciful accoutrements, right now the digital asset claims its value mostly from being a store of value. There are hardly competitors that can handle fast and cheap world-wide transactions, competing with banks and offshore havens at the same time.
At time, Bitcoin price is still governed by the same human tendencies that drive the value of any asset — fear and greed. So if financial commonsense tells you to buy a stock when its value is down, the same rationale holds true for Bitcoin as well. However, there are a few things that you need to keep in mind while doing so.
Don’t hold your breath!
While many experts have claimed the death of Bitcoin when its value crashed so many times before, you should understand one fundamental difference between a crypto asset like Bitcoin and other asset classes. Digital currencies are, and will always remain, inherently volatile and unless drastic measures are taken by world economies to stabilize it by making it mainstream, market fluctuations as seen with Bitcoin prices will be a common sight. You will need a heart of steel to invest in this asset class. You cannot and should not panic when values drop to, say 50%. Such corrections will happen. It is the very nature of these currencies.
Professional management
This is the reason why professional asset management is indeed needed, since it is asked too much, for an average individual with a day job to occupy oneself with all the details of a rapidly changing market. In order to react to these dynamic systems it needs experts and due diligence; both are pillars of Pecunio’s performance policy, which is the reason why we preferred active management of our funds in order to adapt to fluctuated markets. Additionally portfolio diversification mitigates market volatility, fraud and operational risks while as being a hedge fund renders us profitable even during falling markets.
Here are some of the funds Pecunio offers so far:
Risk only a small percentage of your overall investment
We are still in unchartered waters. Bitcoin is still a very new technology and nobody can predict its future. Traditional economic sense tells us that the riskier an investment, greater are the gains. The potential for growth is exponential for an asset like Bitcoin. Try to understand what drives this market, do your due diligence and put in only around 1 to 5% of your overall investment in Bitcoins.
#HODL!
That translates into “hold on for dear life,” a humorous acronym when talking about holding onto a crypto asset rather than selling it. Don’t be swayed by the Bull Run. Cash in on the momentum. So, if you buy Bitcoin at its current price of around $8500, hold on to it even if it goes up by 20 or 30%.
Parting thoughts…
There is tremendous uncertainty regarding the regulatory environment of cryptocurrencies. Policy decisions and even statements from governments are enough to make crypto markets jittery. A good example of this was the free fall in the price of Bitcoin when the Indian Finance Minister, in his recent Annual Budget speech, said that Bitcoin has no legal standing in India. While, what he meant was easily misconstrued by the media, this statement was enough to crash the crypto markets.
Governments are as guarded and skeptical of this rising new class of digital assets, as are individual and institutional investors. The technology is solid and the philosophy behind it is noble and democratic. This means that the future holds a lot of promise for cryptocurrencies.
If ever there was a right time to invest in Bitcoins, it is now! Get your share of the future and get informed on Pecunio’s Cryptocurrency Fund PCC.
