Despite some resurgence, Bitcoin still remained far off from its all-time high. To make matters worse, it has only been consolidating between $19,000 and $21,000 for most of the time. However, the same Bitcoin was able to hit $23,000 even though it was for a very short period. Now, investors from some corners have become impatient. While some have concluded that Bitcoin is dead, others have not hidden their fear of selling at a loss. That then, makes it necessary to ask the question— are Bitcoin investors doomed? Of course, you do not expect us to have the answer. However, we will evaluate the state of Bitcoin, opinions from some top cryptocurrency experts,and what investors can expect.
While there are obviously many factors that affect the Bitcoin price, it is necessary to note that any market does not always support the increase of assets. As confirmed by the Bitcoin Up crypto platform, there will be times that all assets follow the same pattern downwards. Interestingly, it is the case with Bitcoin. For context, Bitcoin most times, has an influence on other assets, and once it crashes, others follow. However, in its own crash case, it was just inevitable. Irrespective of the fall, this article would be incomplete without looking at the Bitcoin performance since 2022 began, So, in this next part, we will brief look at the Month-on-Month (MoM) Bitcoin Performance.
“The blockchain technology that underlies Bitcoin is a major technical breakthrough that could, in time, revolutionize both the Internet and the financial industry as we know them, and the first steps of that potential revolution are now under way.”
— Jon Evans, Techcrunch columnist and Bitcoin purist
Bitcoin: An Overview of Its 2022 Performance
At the start of 2022, Bitcoin was trading around $46,300. Although the price was down from its November high, it still signalled a moderate price for investors. However, in the same month, problems began for investors who were holding the coin as it fell to $36,000 on January 22nd. At the end of the month, Bitcoin recovered again to $37,900. Fast forward to February, Bitcoin regained $43,000 even though it later ended the month around the same price of January 31st.
The month of March, however, came with some surprise as Bitcoin hit $47,000 with many investors thinking that the coin was on its way back to $60,000. While it sustained the same momentum at the beginning of April, it later disappointed, ending the month below $40,000. The notable fall began in May when the coin dipped to $28,000. However, investors were not severely shocked by the price trend until Bitcoin capitulated to $20,000 on June 18. Since the fall, it has become extremely hard for Bitcoin to try approaching $30,000. As of this writing, the coin had revived a bit after a market recovery that saw it rise above $21,000. In the event of the price decrease, some investors have still not lost hope or belief in the coin. Here are some of the notable buys of Bitcoin in 2022 since the fall.
El-Savador, buying an additional 80 Bitcoin in June.
Microstrategy, led by Michael Saylor, adding more millions of dollars to its Bitcoin holdings.
New York Digital (NYDIG) holding on to its Bitcoin.
Tesla ,selling some of its Bitcoin, but still holding some.
The Grayscale Bitcoin Trust continually topping-up its Bitcoin asset.
Regardless of all these, Bitcoin retail investors who bought the asset when it was trading higher were still in losses. While some may have sold off, the state of the crypto market has left many in doom but what else should you know about Bitcoin that could save the day?
Bitcoin: Understanding the Cryptocurrency
Invented in 2009, Bitcoin is a cryptocurrency that was designed as an alternative to the regular money you know. In addition, the Bitcoin Whitepaper describes it as a form of payment that does not require the approval of the government or central bank. So, you, as a Bitcoin owner can control how you use your money without worrying about anyone’s involvement. In general, you can say Bitcoin operates outside of the jurisdiction of the control of anyone that engages themselves in the regulation of traditional finance.
So, once you own Bitcoin, you can partake in financial transactions without needing a third-party. If you are a newbie, there are so many ways for you to purchase Bitcoin. However, the most popular method to own this cryptocurrency is to get it through a cryptocurrency exchange. That said, purchasing it through a crypto exchange does not guarantee anything.The market depends on a lot of factors and you do not want to be found stranded. Still, a proper understanding of how Bitcoin works can keep you ahead of others who just jump into trading.
As for its history, we mentioned that Bitcoin was made available to the public in 2009. However, till today, no one knows the physical look of the inventor as he preferred to remain anonymous. While he goes by the name “Satoshi Nakamoto”, it is only a name to be known by. No one has any record of anyone that bears the name.It has since become the most well-known cryptocurrency in the world. Despite the price decrease, Bitcoin has increasingly become popular in many nations of the world. At the same time, there have been countries banning its use and other restricting its citizens from owning some. This is because they believe it is a threat to fiat money. For some, it is a bubble that would soon expire. Irrespective of what anyone thinks, Bitcoin has been around for more than a decade. With the way it’s going, it does not look like anyone would stop it anytime soon. However, it is also important to note that many have referred to it as a hedge against inflation but the massive decrease in price could be doing more harm than good. Regardless of the state, let’s look at some answers that you may have about Bitcoin.
Is Bitcoin Safe?
At the moment, Bitcoin is one of the safest assets to own. This is because the coin, like most cryptocurrencies, is protected by blockchain technology. However, if your definition of safe is investing in it, then you need to be careful. Cryptocurrencies are one of the most volatile assets out there. Remember that we mentioned that Bitcoin fell from $69,000 to $20,000. So, if you are looking for fast income or a short-term investment, Bitcoin might not be the ideal asset for you. Nevertheless, those who have bought the coin since it was $100, $1000, and the likes have remained in profit up till today.
How Can I Use Bitcoin?
There are several ways to use Bitcoin apart from trying to make money with it. Most importantly, Bitcoin solves the payment issues faced by most countries of the world. For example, if you were to send $1 million from one bank account to another bank account, the bank would require that you provide a lot of documents as proof that you own the funds. However, if you try sending with Bitcin, you do not need approval from anyone. In fact, all you need is the address of the receiver and a few cents, and the transaction goes through in a few minutes. So, it does not matter whether you are in Europe, Africa, or Asia, you can make payments with Bitcoin fast!
Who Controls Bitcoin?
The clear answer to this is that no one controls Bitcoin. Based on the whitepaper, whatever control Bitcoin has is in the hands of the user. So, you don’t have to worry about regulation, rules or policies before using your Bitcoin. However, there are regions that have found a way to halt Bitcoin transactions. If you reside in any of those areas, it would be better to familiarise yourself with the laws before engaging in trading or investing.
Can Bitcoin Reach $100,000?
At the time of this writing, we cannot assure you that Bitcoin would hit $100,000. Of course, there have been discussions about the possibility, However, with the current market condition, it might be difficult for the cryptocurrency to reach such heights in a short period. Still, it is not out of the question. For some investors, if Bitcoin can reach $69,000 from $3,000, then it should have no problem hitting $100,000 from $20,000. Irrespective of the opinion, you have to remember that Bitcoin remains a volatile asset, and you can lose money if you don’t do your own due diligence.
Where Can I Buy Bitcoin?
Despite the price drewadown, you can still buy Bitcoin. All you need to do is visit an exchange, register, verify, and follow the process to buy Bitcoin. At the same time, you can Bitcoin via broker platforms, peer-to-peer, or FinTech applications.
The Bottom Line
In conclusion, it is important to note that this article is not financial advice. So, we cannot determine if Bitcoin at $20,000 means investors are doomed. Like we mentioned before, the cryptocurrency market is a highly volatile one. The fact that Bitcin has been hanging around $20,000 does not mean it can’t go lower or higher. However, if you want to invest and have no experience, we suggest that you do speak to a financial expert. Doing this will help you make informed decisions if you should invest in Bitcoin or not.
The views expressed on this page are those of the author and not of The Portugal News.