Last year 2019, marked the passing of Bitcoin;’s 10th birthday. It has left some owners losses, and others win. As the cryptocurrency starts a new decade, people are asking if it will be the same wild ride that it has been for the past few years. Will Bitcoin eventually be accepted as an actual currency that we can all use to buy necessities and pay for our dues?
Anyone who is looking into investing in crypto should check their risk appetites first. The market has a chance to stabilise once future trading is introduced, but currently, it is still too risky for ordinary investors. It’s also not recommended for anyone who is approaching retirement age because the volatility is too high.
However, fans of cryptocurrency are now seeing a maturing market. If you’re looking to add to your portfolio, Bitcoin is highly recommended for those who are starting with their cryptocurrency investments. Luckily, we have a secure and beginner-friendly trading platform that can help you get started.
Many facets remain unsettled, though, like the question of whether any cryptocurrency serves a necessary purpose. Currently, the currency only exists as a digital ledger of transactions highly dictated by market supply and demand. But the believers of cryptocurrency have faith in its value of being a true market-based currency that is not in the hands of any central bank or government.
Security is never perfect, though, and coins have been reported to be stolen from time to time. This doesn’t happen to ordinary money stored and insured by a bank. Bitcoin’s anonymity and lack of restriction from national borders have also made it a popular currency among crooks. The fault doesn’t lie in Bitcoin’s blockchain systems, though but in the trading and storage systems.
So far, Bitcoin has not caught fire for being used in ordinary transactions. People who don’t believe in Bitcoin would argue that it is not a true currency since it has a steady value. Hence, it has been treated as more of an asset for speculators. The price spikes had brought about huge enthusiasm among those who bought the currency when it traded at less than a dollar. This price can rise or fall with the slightest touch of regulative policies or if it gets adopted by a mainstream financial firm.
Suppose stock prices are determined by factors like corporate earnings. In that case, Bitcoin value is mostly driven by a lot of uncertainty since there are varying amounts of how much someone would pay for something that has little use in the real world. Because of this, regulations are still uncertain. The future value of Bitcoin will depend on how countries like the U.S. and China will view and regulate cryptocurrencies.
Advocates of cryptocurrency have long defended their views that its limited supply will boost Bitcoin value. Despite that, there is still an ongoing debate on whether that is true because you can only buy and sell Bitcoin in small amounts. If a quarter of a Bitcoin can sell as much as a whole Bitcoin in the future, then is there really a limited supply?
And if Bitcoin wants to really become a mainstream currency, it would need to be adopted at a much wider scale. This cannot happen as long as its volatility continues to make it hard to set a price. The changes are so rapid that a price posted today could be completely different the next day.
A lot of experts believe that regulation will bring stability to the market. Regulation would mean that major institutions will be more likely to invest in digital assets, therefore, providing more liquidity and less volatility in cryptocurrencies.
For the present, though, experts believe that Bitcoin is still far from being widely used for ordinary transactions and purchases. But they do challenge those who think it has no place as a long term investment.
Bitcoin and other cryptocurrencies should be treated as long term investments since it is still a growing market. Long term investments are a good addition to any portfolio, so if you’re looking to diversify, here is a trusted crypto exchange platform that can help you get set up with the tools you need.
They argue that would make a good portfolio addition to those in their 20s or 30s since the price fluctuations today will likely not impact the price after the next 40 to 50 years. However, for someone nearing retirement age at present, it might be a little too risky to add to their portfolios.
