Today, we’ll look at the future of Bitcoin—if it will stick around, which other cryptocurrencies may compete, and how to go about investing for future success.
Has the price of Bitcoin declined?
The price of Bitcoin—and any cryptocurrency—fluctuates constantly. As of right now, Bitcoin has declined since it reached its high of almost $19,000 in December of 2017, but that’s no surprise. The current price of Bitcoin is $6,872—still the highest of all the cryptocurrencies.
Speaking of other cryptocurrencies—that’s one of the reason Bitcoin’s price has fallen.
Why is Bitcoin’s price declining?
At the end of March, Bitcoin dropped 12.6 percent in one day—a steep fall for the immensely popular cryptocurrency. But why such a big drop?
Online security concerns
It’s not just Bitcoin that’s faced security concerns. Many cryptocurrencies have seen a decline in price due to the growing dissatisfaction with online security.
Recently, the Facebook breach caused an uproar from consumers who don’t want their private information sold to other companies. This has always been a concern with cryptocurrencies. There’s been a history of trading platforms being hacked. These kinds of breaches lead to the theft of personal information and the cryptocurrency itself.
Now that Bitcoin has set a ceiling of over $19,000, investors are focusing on other cryptocurrencies in the hopes that they too will suddenly hit such a high.
What’s the future of Bitcoin?
It’s no secret that cryptocurrencies are volatile, but there’s overwhelming evidence that they’re here to stay.
While cryptocurrencies are unregulated and less secure than traditional cash, they’re popular because they’re not regulated by governments. There’s a growing distrust of traditional banks and folks are turning to online sources more than ever.
Because of this, it’s not just Bitcoin that’s expected to stick around. As more and more cryptocurrencies hit the market, investors believe that some will fill niches that Bitcoin doesn’t. At this point, however, it’s too difficult to tell which cryptocurrencies will win out over others.
As cryptocurrencies gain in popularity, so too will the regulations that surround them. In fact, governments themselves are expected to create their own cryptocurrencies in the future. Venezuela, Russia, Brazil, and China all have plans to introduce their own currencies in the coming years. But for now, some governments are settling for regulating the already existent cryptocurrencies.
China is moving towards regulation—albeit, fairly slowly. They have accepted that cryptocurrencies are inevitable, so they’ve started blocking social media accounts belonging to cryptocurrency exchanges. Other countries, like Bolivia and Ecuador have banned cryptocurrencies all together.
If it fluctuates so much, should you “hodl” Bitcoin?
All in all, the future of Bitcoin is uncertain at best, but it’s almost definitely sticking around. So, let’s talk about investing strategies for Bitcoin.
First things first, we do not recommend investing in cryptocurrencies if you can’t afford a very risky investment. That being said, many folks who have made money investing in Bitcoin talk about “hodling”.
“Hodl” was a misspelling of hold in this 2013 Reddit thread. Like all other internet speak, it took off. It’s now common knowledge in the Bitcoin world that hodl means “hold on for dear life”. Here’s a helpful—and hilarious—video that shows the benefits of hodling.
The future of Bitcoin is uncertain, but no matter the price, it’s likely to stick around. Still, other cryptocurrencies are also likely to compete with Bitcoin—which may potentially lower its value.
If you do decide to invest (which we don’t recommend), the best investment strategy might be to hodl (or hold on for dear life) until another surge occurs.
Recommended Investing Partners
- Recommended M1 Finance gives you the benefits of a robo-advisor with the control of a traditional brokerage. M1 charges no commissions or management fees, and their minimum starting balance is just $100. Visit Site
- No Minimum Low-fee robo-advisor with no minimum investment. Creates fully-automated portfolios based upon your desired allocation. Visit Site
- $500 Minimum Wealthfront requires a $500 minimum investment and charges a very competitive fee of 0.25% per year on portfolios over $10,000. Visit Site