Bitcoin has changed the way we think of finance, transforming the world of currency trading and spawning a wide variety of other cryptocurrencies that have ridden its tailcoat to success. The media was awash with stories of people who made initial investments in Bitcoin and who saw their small investments turn into a small fortune. Lately, however, there has been a different narrative in the main stream media, with the declining value of cryptocurrencies making some declare that the boom period is over. Is this really the case however, or in fact is now actually a good time to buy Bitcoin?
What happened to Bitcoin in 2018?
Bitcoin had experienced year after year of growth since its inception. In March 2010 a Bitcoin had a nominal value of less than a cent, but by December 17, 2017 it had reached a new record high of $19,783.06. Many people expected this rise to continue throughout 2018, but in fact it fell from this value to less than four thousand dollars per Bitcoin by November 2018. It’s important to remember, however, that this is still double the value of Bitcoin a year and a half earlier, and so it seems that there has now been a normalization of Bitcoin’s worth, rather than letting the market be exposed to an artificially inflated value. Watching the news regarding Bitcoin’s progress could therefore help you get ahead of the market.
The value of currencies changes day by day, minute by minute, but many traditional currencies change little from one day to the next. Bitcoin, on the other hand, has enjoyed large fluctuations, and this is largely because it has transcended national boundaries and has become a currency of choice across the world, both for trading and retail purposes. Some experts are now predicting that as the currency matures it is about to enter a period of stabilization, with cryptocurrency expert Michael Novogratz, CEO of Galaxy Digital Holdings Ltd, predicting that Bitcoin is likely to remain between $3,000 and $6,000 in the foreseeable future.
A good time for buyers
If Novogratz is right, then this represents a great opportunity for buyers of Bitcoin right now. The secret to successful investment, whether short or long term, is to buy when a value is low and sell when it has risen again. You can get much more Bitcoin for your buck today than you could a year ago, but it may be that the market value is reaching, or has reached, its lowest point. For that reason, investing now could leave you with a serious profit when the market rises again, and if the market does stabilize, as many are predicting, the risk of a substantial fall in value at some point is reduced. The long-term future of Bitcoin currency continues to be strong in the eyes of many traders and experts, with the falls of 2018 merely a blip due to the exaggerated peak it reached at the end of 2017.
All investments can go down as well as up, of course, so think carefully before you make investments of any kind. Nevertheless, the low price, and expert predictions of more stable rises to come, mean that many people now see this as a good time to buy Bitcoin. Whether you’re a small or large investor, it’s always important to keep up to date with what’s happening in the world of cryptocurrencies, which is why specialist Bitcoin news websites should be consulted on a daily basis. One thing is for certain, Bitcoin will continue to make news and waves in the world of currencies and banking for many years to come.