If you have been thinking of jumping onto the crypto bandwagon for some time now, 2021 may be the right time to do so. And if you are thinking of which crypto to invest in, Bitcoin certainly takes the cake. Bitcoin has shown its resilience throughout the years in spite of its frequent price surges and falls. The third halving took place in May 2020 after which it is believed that its prices will rise again.
The Bitcoin was introduced in 2009 by Satoshi Nakamoto as a decentralized digital form of payment that was neither issued nor controlled by governments and banks. Bitcoin prices have been hovering around $50,000 recently and this indicates that it is attracting much interest amongst the big players like Tesla, Apple, Samsung, Google, PayPal, Facebook, etc. These and many other companies have been including cryptos in their strategic plans for the long-term.
Whether Bitcoin prices go up or fall, it can be argued that it will continue to rule the crypto market as it always has. It remains the most stable of the cryptos and continues to lead in terms of market cap. Traders will benefit from its high liquidity and even though the journey has been unpredictable, Bitcoin has shown a steady up trend due to invention of automated trading apps. Check this crypto bank plattform erklärt review to learn about efficacy one such trending trading app. Bitcoin has been promoted as store of value and a system for facilitating transactions without intervention by third-parties. This store-of-value part is embedded in Bitcoin’s design and this is never going to go away. So, as long as you have an operational Bitcoin network, Bitcoins will be a safe way to preserve your wealth. During a time when globally centralized banks are struggling to keep themselves afloat this is one asset you should not disregard. It is fully valid now and has been so for the past decade. The only thing to understand is that it is still away from mainstream adoption and to become the size of the gold market, it will need to multiply 30 times. So, by investing in Bitcoin this year you can get its store-of-value benefits and 30-times return potential. If you consider the inflow into Grayscale Bitcoin Trust you will see that many high-net-worth individuals, small institutional investors, and big companies are investing in Bitcoins. Companies like Square and Micro Strategy are investing in it as treasury asset.
So, the truth is Bitcoin is steadily but surely climbing up the adoption curve. Even though its supply will decrease post the May 2020 halving episode, deep-pocket investors are making investments in the coin. So, chances are high that these developments will push its price high enough to compete against gold as far as market size is concerned. And when that does happen, every investor will be making a bee line for Bitcoins. When this will happen is something that one cannot predict from now itself, but you can always act on what you have in your control.
In the midst of the pandemic with the global economy having come down to its knees, the Bitcoin has been performing well. Whether you apply the earlier cycle growth patterns or the stock-to-flow model, it is almost certain that Bitcoin values will shoot above $100,000 by the year-end.