What Bitcoin’s Continued Growth Might Mean for You

Back in March 2020, when bitcoin dropped from around $10,000 to under $5,000 in the span of days, cryptocurrency holders started panicking. They certainly aren’t doing that now when the price of bitcoin is nearing $35,000. In fact, it has been steadily growing since its COVID-19 induced crash last year. And it’s consistently setting new record heights.

At this point, there are two really important questions:

  • Is this growth a genuine opportunity or a bubble that will burst dramatically?
  • Is it not too late to invest in bitcoin yet?

Why Is Bitcoin Price Growing and Will Bubble Burst Again?

Bitcoin price is growing fast and hard, which is the main reason why investors are so interested in it today. However, a similar situation has happened a few years ago when the whole thing turned out to be a speculative bubble. At that time the price of bitcoin jumped up to around $20,000 in a few months and toppled to about ten times less even faster.

Therefore, it reasonable to wonder whether this is another bubble that will burst in an even more devastating manner?

The answer is, “maybe”.

This is the main problem with cryptocurrencies, which are confusing at the best of times. The one defining quality of this asset is its volatility. This is the only thing that remains true throughout the years. And so far, there is no indication that the volatility will stop.

That said, there have been some changes that speak for the possible growing security of bitcoin. First of all, you can see that today solid reputable companies are investing in cryptocurrency. Crypto is also becoming an accepted payment method on many digital platforms. This acceptance indicates a growing trust in this type of currency.

Most importantly, digital money is now not some futuristic fantasy. Central banks of many developed countries are working on this type of project. Again, the growing acceptance of cryptocurrencies indicates that this time the bubble might not burst.

If this is going to be the case, the forecasts about bitcoin growth will come true. This means that you might see it reach close to $60,000 by the end of the year. Some experts and avid bitcoin believers say it can climb as high as $500,000 eventually. From this point of view, investing in bitcoin now can make you a fortune.

However, will this newfound acceptance of digital money be enough to counter the extreme volatility of crypto? Also, an even more important question is whether bitcoin will remain the leading cryptocurrency?

You shouldn’t forget that bitcoin is not the only crypto, it’s just the first. If better-developed technology comes along, it might replace BTC completely.

Should You Invest in Bitcoin Now?

People who consider investing in bitcoin right now mostly have two issues. One is that they wonder whether it’s not too late to buy it yet. After all, with the hefty price of over $31,000 per BTC this is a very expensive investment.

The other issue is whether they should buy bitcoin at all. This has to do with the long-term forecast for cryptocurrency. As explained above, the inherent volatility of crypto is still there. The world might be changing, but no one can say for sure if it will change fast enough.

This might as well be the last shining moment that bitcoin has.

The answer to both these questions is the same. You should consider investing in bitcoin now only if you are willing to take the extreme risk.

None of the changes in the view of cryptocurrency have reduced the high level of risk involved in this investment. And this won’t happen soon. Therefore, you should only take this step if your investment strategy allows you to risk.

Simply put, if you have the money to spare to buy some bitcoin now, you can. But before you do this, make sure that you are financially secure and have other investments and have your emergency fund. If you want to be safe, cryptocurrency shouldn’t be the main position in your portfolio. It should only be an extra bet that you can lose without losing your fortune.

In regards to whether it’s not too late yet. No, it’s not too late to buy BTC no matter how expensive it is now. This is because if you believe that it will keep growing in the future, you will win anyway.

However, if you don’t believe in bitcoin’s long-term success enough to bet your money on it, you should stick with less volatile investments.

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