The price of Bitcoin is increasing day by, so is this the best time to invest in Cryptocurrencies? Is the bull run just getting started, or will we see a downfall in Cryptocurrencies’ price evaluation?
2017 marks one of the best years of Bitcoin. It rewarded the traders and investors with an almost 1400% return and an all-time high of $20,000. The picture was different in 2018. The price of Bitcoin dropped by 70%, racing to almost $4000. This continued for the next three years.
At the start of 2020, the Bitcoin traders started the market with a bullish mood. 2020 was the year when the pandemic broke out and brought every asset to its knees. The cryptocurrency market also took some initial steps; however, it soon recovered, reaching new heights.
Although Bitcoin is a volatile market, 2020 has taught us that not investing in Bitcoin is an unwise choice. If you want to know more about Cryptocurrency and Bitcoin, visit https://bitcoin-profitapp.com.
Why Should You Invest In Cryptocurrency Today?
Despite heavy losses in the first quarter of 2020, Cryptocurrency and Bitcoin bounce back to their former glory. In fact, the popularity of Bitcoin skyrocketed, boosting Bitcoin’s price to reach new heights.
In November 2020, Bitcoin entered in a second successful rally where it broke several records and reached a new all-time best of crossing $20,000. This successful rally does not stop here. By the end of 2020, the price has already crossed $30,000, and in the first two of 2021, the price has already reached a new all-time best of almost $42,000.
If this is not enough to convince you to invest in Cryptocurrencies, the following reason might as well convince you.
1. Boost In Adoption
The world has understood the importance of Cryptocurrency in the financial system. When the traditional financial stricture was crumbling, the Crypto financial structure was working just fine. This hello the people believe in its future potential and how it can be used to fight back crises like these.
Over the last year, Crypto traders and Investors have tripled. In fact, big tech giants like PayPal and Square have dived into the whole Crypto thing. As the Crypto trade market continues to heat up, there are plenty of chances for the retail market to grow.
2. Bitcoin’s Value Is Perfectly Suited For Macro Climate
Bitcoin was born out of the global financial crisis in 2009. The purpose of Bitcoin was to provide an alternative financial framework that worked against government failure, Bank dropouts, and offering quantitative easing.
However, with the launch of Bitcoin, it was left in the wild where it was ignored except for small scale businesses who were idealists to try new things.
It has already been more than a decade, and Bitcoin is proving itself as one of the top contenders to replace the traditional fiat currencies. And the best part that makes Bitcoin a suitable candidate for future currency is that it has resistance to inflation.
3. Bitcoin Stock To Flow Model Hold
With Cryptocurrency in the market, a new concept has been formed, “Stock To Flow.” Stock To Flow determines the value of after stocks. Stocks are the representation of the total supply in the market per year.
As Bitcoin is an open-source platform, you can easily measure its S2F. With the currency Bitcoin halving in 2020, the current S2F value of Bitcoin is 56, which is almost equal to the Gold. This clearly shows that Bitcoin is equivalent to Gold in many ways than we imagined.
4. Wall Street Is Going For Crypto
Bitcoin was the best asset that has performed in 2020. However, there were other assets that have performed really well-for instance, Gold and Equities. But they were really crushed by the high-end performance of Bitcoin.
Bitcoin’s strong performance has not been escaped by the keen eyes of Wall Street. According to wall street, the whole existence of Bitcoin is categorized by major price swings.
Although Bitcoin might seem an asymmetric bet to make, it certainly caters to high profit compared to other assets in the market. Based on how Bitcoin’s network had been effective in 2020, we can hope to see a boost in adoption. And with the 2020 Bitcoin halving, Bitcoin is set to outperform its last year’s performance in 2021.