The value of Bitcoin has declined drastically in the past few years, with many users and miners blaming the cryptocurrency’s increasing competition from other digital currencies and worried about the future of Bitcoin and other digital currencies. In other words, the price of Bitcoin has fallen precipitously in the past few months. Still, if we look at the long term, here’s what you need to know about the future value of Bitcoin.
The price of Bitcoin and other cryptocurrencies is highly volatile.
When large institutional investors first started investing in Bitcoin and the other cryptocurrencies, they were treated with nearly the same treatment as penny stocks on Wall Street. Anyone who bought into the market expecting to make a quick buck was out of luck. Most of these big investors who jumped in at the high point have left the market and will likely never return. If you bought into Bitcoin as an investment in 2013 or 2014 and held it through 2016, you would be looking at a massive loss or tiny gains.
There are only so many actual uses for cryptocurrencies.
As with any new technology that becomes popular over time, there is a tendency to overanalyze its utility before adopting it as an investment strategy. People who bought in early on believed it would be used as a currency for cross-border payments or remittance transfers. This belief has waned since Bitcoin’s inception because most of its competitors also have solutions that work fine for those purposes. There are still companies that use cryptocurrency for these purposes – however, these are niche applications that won’t help you get rich overnight. It is possible that BITCOIN TO 1 MILLION in some days.
Additionally, Bitcoin started to transfer wealth without getting through the financial system. As such, people who were attracted to it, in the beginning, saw it as a way to circumvent the banking and regulatory systems. However, this is not a sustainable reason for wanting to own stocks and bonds because even with that added “security,” you are still only investing in governments and corporations rather than owning physical assets.
In conclusion, Bitcoin was invented as a way to facilitate illegal transactions (mostly buying drugs), and it is still used for that purpose today. For this reason, most stocks and bonds to be safe havens, despite what the financial industry may want you to believe.