Is It the Right Time for Investing in Bitcoin?

Dude looking at TA charts
This is a guest post by Mary Ann Callahan. All views expressed are her own and do not necesarily represent the views of MekongMonkey. This article is intended to be used for informational purposes only. This is not investment advice. Always do your own research.

Many people might be tormenting themselves because they didn’t buy Bitcoin when it was cheap. The ridiculous boom in December made many people rich and made many other curse themselves for not jumping on the Bitcoin revolution quickly enough.

There would have been others, though, who invested in December only to lose a massive amount of money when the coin fell again. Investing in cryptocurrency is a minefield sometimes, but you can still work out when it is and isn’t a good time to invest.

What’s so good about Bitcoin?

Bitcoin is the undisputed heavyweight champion of the cryptocurrency world. It’s by far the biggest coin and will be for a long time. It’s the coin that everyone knows and has built itself to be a powerful brand. When people think of cryptocurrency, their thoughts would immediately turn to Bitcoin due to its dominance in the market.

Bitcoin will hold a high value for a very long time, but as a potential investor, you’re only really interested in whether that value will go up or down. The signs haven’t been good since the start of the year as Bitcoin seemed to be in a steady decline, but there are recent signs that things could be looking a lot better.

If the cryptocurrency becomes more accepted across a broad range of different people, firms, and institutions, then this is likely to have a positive impact on Bitcoin. We have seen this increase in acceptance over the last few months, and there are a lot of other crypto coins that have developed partnerships with many well-known companies.

Despite a difficult year for the world of cryptocurrency, the long-term potential is excellent as coins are used more like an actual currency rather than an investment. An investment is precisely what many people see in Bitcoin at the moment, however.

The reason for Bitcoin’s change in fortune

BlackRock is the biggest asset management company in the world and the statement about their readiness to explore Bitcoin seems like a vote of confidence in the coin. They previously distanced themselves from ever investing in the cryptocurrency, but recent comments have shown a complete change in attitude towards it. It’s another sign of the continued acceptance of Bitcoin as previously skeptical people are now warming to the idea of cryptocurrency while it becomes more understood.

This has had a positive effect on Bitcoin and has led to the Bitcoin price rising in recent weeks.

Another piece of positive news for Bitcoin was the sign that the Bitcoin ETFs could be accepted, which is a means to buy and exchange Bitcoin without having to go through one of the traditional exchanges. This would make Bitcoin a lot more accessible and is a massive step for the cryptocurrency to attract investments from large institutions.

This still needs to be approved by the Securities and Exchange Commission (SEC), and it seems very unlikely that they will give the green light to this initiative any time soon. However, if the shift in attitude happens, there will be more signs about how the coin is going to recover over time and keep getting stronger. When that improvement takes place, it could trigger an even bigger increase in Bitcoin’s price.

There is plenty of competition

Bitcoin has led the way for the digital currency market for some time. Even with plenty of challengers popping up day by day, it’s still hard to see Bitcoin being knocked out of its position over the next while. It is still miles ahead of the competition when it comes to every measure, but it might not always be that way.

There are many cryptocurrencies with increasing reputations, which might see more people turn away from investing in Bitcoin and instead invest in alternative coins. If Bitcoin wants to keep its price increasing, then it needs to be able to maintain its brand value high and market itself as still the cryptocurrency of choice for those looking for both a short-term and long-term investment.

Bitcoin will hardly be the coin of choice in the future if cryptocurrency gets used like regular fiat currencies today. However, it could remain a store of value for many people who are looking to invest their money into a digital currency which is a lot more private and secure than traditional banks as we saw with the recent recession.

So should I invest or not?

It’s unlikely that we’ll see a sudden rise with Bitcoin again, although it could happen with other cryptocurrencies. Instead, Bitcoin could well establish itself as a long-term investment and one that will steadily rise over time. Due to the volatile nature of the market, there are still likely to be significant peaks and troughs with Bitcoin, but the future looks promising in many respects for it and the market in general.

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