The concept of crypto investment and Bitcoin is not new to anyone. For the past decade, we have been hearing about this investment model.
Bitcoin made its global entry into the investment market in 2009. This investment became a solace to many investors who were looking for a recovery path. Additionally, the concept of blockchain technology and decentralized finance excited many. Every Bitcoin works on both these techniques. Every transaction through Bitcoin is broken down into multiple units of blocks. These chains then take storage space in the public ledger. Such public networks are accessible to all. The security feature in blockchain technology ensures that there is no option to trace. Check this link if you’re interested to know about bitcoin mining hardware requirements.
How Bitcoin is Ruling the Crypto Market?
Today, the total market cap of cryptocurrency is close to $3 trillion. And to add, more than 50% of this investment is on Bitcoin. The token got its launch with $1 as the market price. The same token hit an all-time high of $65k in 2021. Early investors of Bitcoin have made a fortune through this token.
While many other cryptos made their entry into the global market, Bitcoin still holds its position. The platform allows undertaking transactions easier. Cryptos like Ethereum and Polkadot promise much better speed in transactions. Despite this drawback, many investors still make their investments in Bitcoin.
In 2009, Bitcoin simply aimed to be a token to enable the peer-to-peer transaction. It is not tied to any global currency. Hence it becomes easier for investors to trade in their native currency. It also allows you to undertake fund transfers at a much easier pace than the traditional model.
Other than being an investment model, Bitcoin is also globally known to be a payment method. Many online sites include shopping, merchandise, gaming, and real estate. El-Salvador came forward to legalize Bitcoin payments.
One disadvantage of Bitcoin is that everyone speaks about its data mining. There is considerable energy spent on the mining process. It also causes environmental hazards making it highly energy-consuming.
Growing celebrity endorsements
Another success factor of Bitcoin is the celebrity endorsements. Elon Musk went ahead with endorsing Bitcoin. He announced that Tesla automobiles can be purchased through Bitcoin. However, this decision was soon withdrawn due to environmental hazards. Other than Elon, there are also various other celebrity endorsements about this crypto. This is yet another driving force attracting major investments in cryptocurrencies.
There is no doubt that Bitcoin is pricey today. As of early 2022, Bitcoin traded between $35 to $40k per token.
Market performance in May 2022
The current month may be a nightmare for many Bitcoin investors. The token is now traded at less than $30k per token. The market is not promising to recover. Prices have been dropping each day.
Is the Dip for Investor Advantage?
What is a dip in crypto? When crypto prices continue to decline without any sign of recovery, then it is a dipping market. The current situation is nothing but a dip as prices do not show any positive signs.
Many investors are of the strong opinion that interested investors may leverage now. The current situation is a huge potential to enter into Bitcoin investment. The market has always shown the potential to recover from such crises.
The current market condition demands every investor to remain calm. It is important to study the market conditions before making any investment decision. Certain investors are panicking. There is a huge volume of trading undertaken due to this situation. Many small-time investors are selling their possession to not face further losses.
The current market condition does not predict anything wrong with the market. The economic crisis and dollar rate are impacting the crypto market. Crypto investment has always been volatile. External crisis and market conditions have caused huge trading changes in crypto. The current situation is yet another example of it. If you are planning to invest in Bitcoin, it is important to now wait. Study the market trends carefully. Make sure to invest after you have complete knowledge.
The crypto markets have also impacted the stock markets. It is best recommended to keep calm and invest when the time is right.