If you have been following Bitcoin for a number of years, or at least heard of it in the media, you will remember its meteoric rise in 2017 to USD20,000 and the subsequent dramatic fall in 2018. At that time most commentators were justifying their thoughts that Bitcoin was a fad and would end badly for holders of the digital currency.
Fast forward to now and those that were brave enough to buy in after the price drop have seen the price increase quite dramatically.
Right now the bulls are running again and risk appetites are alive and well. The dreaded Covid 19 and the resulting pandemic may have certainly smashed the stock markets, however even they bounced back quickly — albeit with masses of cash injections from central governments around the world.
For Bitcoin, this does not appear to be the next bubble. It has been steadily making ground over the last two years even with the volatility and heart wrenching price ups and downs that we have come to expect. This does not look the next bubble ……..at least not yet.
The Bitcoin rock and roll rollercoaster will undoubtedly be a wild ride going forward but if you ignore the short term price movements then the trend up is intact and the opportunity for upside (even if you do not believe the perma-bulls) is significant.
Cryptocurrency is up about 120% from March 2020 lows alone.
So if you are wondering what’s next as everyone else is, then be mindful that this is a progressive leg up based on volumes that are not great and against a backdrop of greater uptake and acceptance of crypto currencies generally, and Bitcoin specifically. Bitcoin is still the king of crypto currencies and alongside some of the other blue chip coins, it’s good to have a piece, even if it’s just a small piece.
Buy or not to buy — that is the question?
When weighing up the attractiveness of any opportunity it is a choice between priorities. There are so many choices available and weighing up the attractiveness of any opportunity , including buying cryptocurrencies, means your funds are not available to buy other things. There is a real shortage of money making opportunities around these days with asset prices stretched and sinking along with interest on cash deposits falling to historic lows.
The journey into crypto currency price changes and volatility will never be a straight line up and price variations may never be entirely logical and sometimes painful.
Bitcoin is definitely worth considering if you are looking for a risk/return play that has potential for significant upside.
Be safe. Be responsible