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In the 21st Century, cryptocurrency has emerged as a rather hot topic. It is said to have the potential to change the way people deal with transactions.
Since Satoshi Nakatomo’s White Paper on Bitcoin appeared in the year 2008. The concept of cryptocurrency has spread wide, making room for more cryptocurrencies to be created. As a matter of fact, the size of the blockchain technology market across the globe expect to climb over 39 billion U.S dollars by the year 2025.
Hearing all sorts of stories about people trading in cryptocurrencies. There is a chance that you might also be tempted to create a story of your own. But you must also worried that cryptocurrencies have become a norm now. And you might not be able to benefit from them enough.
Have a look at the five reasons why it is still not too late to invest in Bitcoin, weigh your options and then decide for yourself.
1. Institutions Are Flocking to Cryptocurrency
By the end of 2020, Bitcoin had sailed its previous all-time high value of $20,000. This acted as a starting pistol for institutional inflow to a number of cryptocurrencies. However, the journey has just begun. The results of several surveys prove that around 70 to 80% of the institutional respondents have planned to increase their allocation of cryptocurrency in the coming years.
You may not know it, but institutional investors tend to have large appetites. Since the economy of cryptocurrency revolves around supply and demand, this increasing demand is changing businesses’ behaviors.
Crypto everyday is becoming a more and more legitimate payment alternative. So, merchants who want to use it to meet their customers’ needs may now do so with the help of crypto payment gateways, such as Coingate.
2. Profit Potential
It is an undeniable fact that the cryptocurrency market happens to be quite volatile. When bought at the highest points, there are high chances that the investment may lose if the price drops. On the flip side, if you focus at the bigger picture, cryptocurrency, especially Bitcoin, has seen enormous gains in value.
Talking facts, Bitcoin saw a 60% rise in its price in the year 2021 in comparison to assets like real estate, bonds, gold, and stocks that either had low gains or price dips. Not just Bitcoin but other cryptocurrencies like Ethereum also experience a whopping 500% rise in their price.
So, you can’t deny the fact that investing in Bitcoin can bring in huge profits.
3. Inflation of the Fiat Currency
Alarm bells have been ringing in the world regarding inflation problems. This had led the central banks around the world to print more money which has resulted in the decrease of the currency over time for the average consumer. Cryptocurrencies like Bitcoin tend to solve this issue as the limited supply helps in resisting inflation which, if continued, can lead to turbulent times if the economy collapses.
Especially after the COVID-19 pandemic, governments forced to print money in order to meet the stimulus requirements of the countries. The government of the United States also printed more money to tackle the issue. Which led the inflation rate to rise by 6.8%.
So, investing in Bitcoin may help to deal with the issue at hand as it is an alternative to inflation-prone fiat currencies.
4. Cryptocurrency Is Way Below from Its Recent Highs
If you believe that the cryptocurrency market is another type of stock market. You should know that now is the prime time to buy cryptocurrencies like Bitcoin, as they happen to be experiencing a dip.
Even though Bitcoin is still above the September lows of around $40,000. It is still approximately 10% down from its all-time high, which was close to $62,000. The history of Bitcoin has proved that big drops like this are not unusual. However, they are not consistent as well. If it is going through a dip right now, there is a chance that it will climb to new highs as well.
5. Halving Cycle of Bitcoin Isn’t Even Done Yet
A considerable amount of community in this industry understands the halving cycles to have a compelling link to the price of Bitcoins. Bitcoin’s stock-to-flow happens to be a popular model that can predict future price movements with fantastic accuracy.
Another model is the stock-to-flow cross-asset model. Which reported performing the same task with the same level of accuracy. However, it is said to be one step ahead when it comes to being ambitious in price predictions. The Bitcoin prices could reach $260,000 or even more per this model. So, don’t you think that this prediction can make you a millionaire?
Final Words
Despite all the strides of Bitcoin over the last decade, it would be absolutely right to say that there is still a vast scope for development and expansion in the future. With that being said, it is definitely not too late to dip your toe in the crypto world.