Bitcoin - a Sleeping giant in 2020

  • 7 months   ago

Bitcoin is one of the best investments you could have made if you started when it first came on the scene. The return on investment from this digital asset is quite literally in the thousands for those who started at the beginning, and it has made countless millionaires for those early investors. With that said, there is still a lot of skepticism surrounding Bitcoin and whether it truly has the ability to change currency as we know it. 

It’s blown up to well over $15,000 during its time, but as we all know, the bubble popped and the price fell off a cliff. The question is, is now the right time to get into Bitcoin? Because supply and demand immensely affect its price over time. And its lower price indicates an inclination towards a loss if you have invested in it. But one should remember that  businesses are always a risk taking phenomena. 

A Brief Overview of Bitcoin

Bitcoin is a decentralized digital currency, and it differs from regular currencies in many ways. First of all, most currencies and indeed their values are controlled by a government or central bank, therefore they are described as centralized currencies in some instances. Over the years’ many people have become curious and even skeptical about how this works, which gave birth to the interest in Bitcoin in the first place.

Bitcoin is a bit more than just that, however, as it also has the ability to make transactions secure and anonymous for thousands of people. This in itself eliminates the possibility of hackers and other threats from tapping into your finances and stealing your details. This is one of the reasons why its demand rises. In a nutshell, this is how Bitcoin works and the main reason why cryptocurrencies offer so many advantages when it comes to online financial transactions (read in Arabic).

Historical Returns

Bitcoin was first to the world and back in 2008, which interestingly, is the time that the housing bubble popped in the USA and the effects rippled throughout the world. Some savvy investors got stuck into Bitcoin around 2011, and the price was just $0.30 per Bitcoin! And it was attributable to its demand mostly. That is simply incredible considering that now this digital asset is worth approximately $7,700 at the time of writing.Talk about a return on investment!

The thing is that Bitcoin is amazingly volatile and the price can swing hugely from day to day concerning its demand, so investing in Bitcoin is certainly not for the faint of heart.There are a large number of investors of  bitcoin as it is a profitable business. Now that Bitcoin is floating just under $8,000, investors are constantly debating whether many have ‘missed the boat’ with Bitcoin or whether it is still a great investment. We’ve looked into this a little bit more in the next section.

2020 News for Bitcoin

Bitcoin has posted a small gain in 2020, despite the obvious impact of the coronavirus all over the world. A lot of focus this year has been on the halving that took place in the middle of May. This is something that only occurs once every 4 years, and when you look back through the charts, Bitcoin has typically increased in value. This is essentially down to basic economics, whereby it is normal that when the supply of in-demand goods decreases, the price increases. 

Final Thoughts

Investing in Bitcoin is one of the hottest topics of the last decade, it even has its own “Bitcoin Pizza Day”, but it is also one of the most misunderstood investments of them all. With wild price swings and high-profile investors all split over the functionality and sustainability of Bitcoin, it’s something that you need to have a strong stomach for if you are going to buy any Bitcoin.

It certainly doesn’t behave in the same way as other traditional investments, which makes it hard to predict, but then again, the returns on investment are significantly higher than any other stock. We believe that the Bitcoin price will continue to rise through 2020, but as with all investments, we will all have to wait and see.