There’s no question about it: Bitcoin has had a tough year.
In fact, the last few months have been brutal for the world’s most popular cryptocurrency.
Just take a look at Bitcoin’s Price Chart over the last year, and you can easily notice that Bitcoin is currently in a bear market – a prolonged period of time when the cryptocurrency values are declining. This can also mean that Bitcoin prices are unlikely to rise anytime soon. Moreover, investment advisers urge tremendous caution.
Is this a bad thing? Or does it mean it’s time for us to take advantage of the low prices by buying more Bitcoin?
Is Bitcoin still relevant?
Long term benefits
Bitcoin is the world’s first decentralized cryptocurrency, and despite the turbulence and uncertainty, it has remained a way to store value and an accepted form of payment for millions of people around the world, also performing better than any other asset class (including stocks, commodities, and bonds) over the past decade.
Scarcity could increase Bitcoin’s demand
Bitcoin and gold have something in common: they’re both scarce.
Gold has been considered a precious metal and safe investment for centuries, its supply is limited by nature.
The supply of Bitcoins is also limited, minting will stop at 21 million. As of August 2022, according to CoinMarketCap, there are 19.122 million BTC in circulation.
Industry experts consistently point to this built-in scarcity as a big part of Bitcoin’s appeal.
But this remains the big question for the cryptocurrency industry: what happens when there are no more Bitcoins to mine?
More control over your assets
Bitcoin gives you complete control over your money, its characteristics are highly attractive:
- Transferability. The ability to transfer value from one person to another within seconds. Transactions are sent directly from sender to receiver without the need for third parties.
- Divisibility. The ability to break down the currency into smaller units of value – individual bitcoins can be divided into eight decimal places, meaning that anyone can purchase a small fraction of a Bitcoin.
Bitcoin’s future is still very uncertain, and in my opinion, Bitcoin is still relevant.
However, as Bitcoin’s price continues to fall, my question is: how do you manage the volatility of Bitcoin?
Read further about The Top 5 Strategies That You Need to Survive Crypto Winter.