A lot of people didn’t think too much about Bitcoin until 2017, when it exploded to new heights. It was hard not to get caught up in the hype. After all, there were many Youtube celebrities showing off their Lambos that they bought with the profits from their investments in bitcoins.
But then the accident happened. Almost overnight in early 2018, the price dropped almost 80%. And that’s when people gave up on the idea of Bitcoin as a viable currency and didn’t think about it anymore.
Was it wise to go ahead and think with more tradition? Or, was it wrong and short-sighted to write Bitcoin as a fad that after all had no real value?
Now that Bitcoin has reached record highs, it’s worth taking another look and seeing if it’s a good idea to rethink it.
Once the crash happened, people not only started wondering if it was a good idea to continue supporting cryptocurrency, but they also wondered if Bitcoin is legal. Some countries decided to ban the cryptocurrency trade and some people turned their backs on it, even though it was still legal.
Then, bitcoin entered a certain period of hibernation. Gradually the price dragged on, but it never reached the fever it had previously reached in 2017. Then in 2020, the pandemic hit and suddenly people got a very different view of the possibilities of bitcoin. .
Advantages of investing in bitcoin
One of the problems caused by the pandemic was that the economy suffered a major recession. To keep things going, many governments started printing money like crazy. As a result, inflation went wild.
Because there is a limited amount of Bitcoin, there can never be any case of inflation. Many saw it as a good way to protect their money. And the value went up again. Then Paypal announced that you could start using their app to buy bitcoin and it started to be adopted by the masses. Which in turn caused the value to rise even further. You now have a situation where you can protect your money from inflation and use the cryptocurrency as the real currency that holds its value. And not only that, but if you are buying to protect your money and the price keeps rising, you will also get neat profits.
If you’re still unsure whether or not to believe the Bitcoin hype, start by buying small amounts that you can afford to lose. This way you can see if it is worth investing. Since any investment is a risk, the pros and cons of investing in bitcoin need to be weighed.
* This article was provided on behalf of Paxful. However, the information provided here is not and is not intended to be advice on investment, financial or otherwise.
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