Recently, Bitcoin had its major bull run in years. The price of the world’s most valuable digital asset climbed the ranks to peak at an astonishing $60,000 per coin. Following the trend, the price of other cryptocurrencies also increased significantly, which led more people to purchase bitcoin.
Is Now the Best Time for Investing in Crypto?
Ethereum beat a record when surpassing the $4k mark per coin, while digital assets like Litecoin, Dogecoin, and Binance Coin had a good performance as well.
However, after the rise of an unprecedented bear market and the fall of the crypto prices of almost all cryptocurrencies, many newbies and amateur investors want to give up on crypto. In this article, we will show you why now is the best time for investing in crypto.
A Brave New World – How Cryptocurrency Changed the Financial Scene Forever
In October 1929, the New York Stock Exchange collapsed and plunged the US into a deep financial crisis of worldwide proportions that became known as “The Great Depression.”
Almost ten years after, the greatest comic book hero – Superman – was first published as an amalgamation of everything that American society lacked after the severe recession: strength, courage, and hope.
Similarly, Bitcoin’s origin reminisces Superman’s creation. The first records of cryptocurrency technology point back to mid-2008, when an anonymous figure named Satoshi Nakamoto, published in a forum the file “Bitcoin: A Peer-to-Peer Electronic Cash System.”
The first record of a crypto mining process happened in January 2009, when the idea was materialized into reality.
At the time, the world was going through the biggest economic recession since the Great Depression, due to the bursting of a US housing bubble. The stock market suffered a colossal setback and many company’s stocks turned to dust.
Also, some banks crashed and thousands lost their savings in the process. In essence, the traditional financial system collapsed, but cryptocurrency gave people a way out in the middle of a chaotic environment.
Cryptocurrency’s Growing Acceptance – Endless Possibilities for People Who Stick to It
Currently, there is a process of growing acceptance of cryptocurrencies amid many traditional players, such as banks, investment firms, and industry-leading companies such as MicroStrategy and Tesla.
Following this positive trend, lots of people who did not even know about the existence of digital assets are adhering to the new wave of crypto enthusiasts. Nevertheless, it is safe to affirm that most newbies in the crypto industry will not stick to it, simply because they entered this world for the wrong reasons.
Many people think they will become rich overnight by investing in a bullish cryptocurrency. Is it possible? Maybe, but only if all factors involved in the crypto game are aligned in the investor’s favor.
People who enter the world of crypto investments for the wrong reasons will not stay when volatility and market changes start acting the way they act. On the other hand, people who study cryptocurrencies and stick with them will be the winners when the crypto prices come up again.
Larger than Life Appreciation – A Brief History of the Price of Cryptocurrency
Taking a look back at the evolution of Bitcoin’s price, it is plain to observe why it is the world’s most valuable crypto asset – despite all volatility and controversy involved in the process.
When Bitcoin was only available for three years in 2011, each BTC had a value of around $3. At the end of 2020, the value jumped to more than $30,000. Subsequently, Bitcoin started 2021 with a record growth reaching over $64,000, but soon after, it suffered a huge setback.
The sharp appreciation in a short period attracted more and more investors to the cryptocurrency industry. However, after the peak, Bitcoin registered the second biggest monthly drop since mid-2012 in May 2021, with a devaluation of 35.28%.
It is possible to affirm that the negative was driven by restrictions on China’s mining activity, as well as “crypto influencers” such as Elon Musk, who began to question the environmental impact of cryptocurrency.
Generally, mining cryptocurrencies – especially Bitcoin -requires a lot of energy, since the process is complex and requires a lot of computing power. However, there are other options of altcoins that do not rely on mining (e.g., XRP).
Ultimately, the current bear market did not affect the interest of solid investors who started to see bitcoin and other digital assets as a safe and profitable option to invest both in the medium and long-term.
Final Thoughts
Currently, the issues that are causing cryptocurrency prices to fall will only affect it in the short to medium term. In the last two months, most news has been pessimistic, but the time will come when everything will stabilize.
At this point, all users who chose to buy digital assets while everyone else sold them will have their reward, as the valuation of these assets will reach unprecedented levels.