- What does the future of Bitcoin look like?
- Is it the right time to invest in Bitcoin?
- What are the reasons to invest in Bitcoin?
Since the beginning of 2022, Bitcoin has been subjected to a persistent stream of attacks. Coin prices surged strongly for ten days before plunging to their prior support level. After three months of holding their hearts in their hands, Bitcoin investors are still expecting that the value of BTC will climb. Others are wondering whether it’s too late to buy Bitcoin. When it comes to the crypto king investment in this piece, we’ll look at what market participants need to keep an eye out for and what they don’t need to be worried about.
The BTC market’s erratic behavior is well-known. Bitcoin’s price has plummeted to new lows in recent months, making things even more volatile. If its price continues to break through support and resistance levels, it will defy all previous predictions of a $100,000 value by 2022.
Unfortunately, after hitting $45,000 last week, Bitcoin was unable to break beyond this barrier. As a result, others wonder whether it’s too late to invest in bitcoin now, despite the uncertainty, while others buy it nevertheless.
Why is it still early for Bitcoin adoption?
From a technical sense, it’s too early to say it’s too late. We haven’t yet attained artificial general intelligence or artificial superintelligence when it comes to AI. Because of this, scientists feel we are still in the early phases of technology adoption, even though AI has been around for over 70 years. Therefore, blockchain technology, rather than cryptocurrency prices, should be our only consideration for the concept. As of now, it is a relatively new technology, but its advantages might help drive digital tokens into the future.
However, Bitcoin is still widely recognized as the market’s first-ever cryptocurrency. In addition, most signs show that we have a long way to go to acquire and retain BTC.
As an actual store of wealth, Bitcoin is anticipated to be used daily by its users. A transaction token is a common currency in today’s society. Over time, Bitcoin is predicted to eclipse Ethereum. The widespread adoption of Bitcoin will occur if it is recognized as a ‘trade coin.’
Bitcoin’s’store of value’ notion puts it at the forefront of institutional adoption, which is encouraging. As a result, many establishments are beginning to accept BTC as payment. As a result of this move, many firms are forced to invest in BTC to keep tabs on the asset’s progress.
One of the most efficient ways to simplify Bitcoin’s business environment is to make the transaction process as simple as possible. Aside from making it easy for investors to buy and sell Bitcoin, Block and Robinhood enable users to spend bitcoin at familiar places while rewarding them for their activity. When transactions become more accessible, people will begin to choose Bitcoin over other currencies.
Why should you invest in Bitcoin in 2022?
Here are three reasons why you should invest in the crypto king in 2022.
Continued institutional adoption
Even if Bitcoin never becomes a medium of exchange, it has already established itself as a significant store of wealth. The early promise of “digital gold” now seems far off because gold is worth over $9 trillion. Even if Bitcoin doubles in value, it will still be less valuable than gold.
A modest portion of the portfolios of both individual and institutional investors is being allocated to Bitcoin. Because of its relative independence from the rest of the financial market, Bitcoin may be a valuable tool for investors looking to broaden their portfolios. In addition, BTC-focused financial products are already available, making it easy for investors who don’t want to acquire Bitcoin directly but want to diversify their portfolios.
It may take some time to get to this position, but its potential to become a generally acknowledged, no-brainer portfolio addition cannot be denied. ARK Invest’s Cathie Wood estimates that a single Bitcoin would be worth $500,000 if institutional portfolios held 5% of their assets in the cryptocurrency. We generally find her wild forecasts amusing, but this one isn’t.
Real-world use cases
Additionally, Bitcoin has the potential to be used as a means of exchange in real-world transactions and a legitimate store of wealth. In developing countries, its importance is evident. Many Bitcoin doubters argue that the currency will never be helpful because of its excessive volatility.
According to Statista, India was the top recipient of remittances in 2020, with $83 billion paid back to the country from workers working overseas. According to World Bank statistics, transferring $200 to India costs 5.2 percent. From a financial viewpoint, this position is inexplicable. For example, a higher percentage fee will lower the dollar amount.
Bitcoin is a viable alternative. A total of $4.3 billion might be sent to Indian citizens’ bank accounts due to the digital currency’s ability to transit international borders instantaneously. The immediate economic impact may be life-changing for certain people. Everyone should have access to a smartphone and high-speed internet, of course. On the other hand, Bitcoin might be seen as a replacement for expensive financial intermediaries, which represent a tax on people in developing countries.
Growing infrastructure of products and services
A lack of the necessary technological infrastructure would make it impossible to possess and trade Bitcoins. For example, companies like Block (formerly Square) and Robinhood make it easy to buy and sell Bitcoin. In addition, customers may use Coinbase’s Visa debit card to purchase BTC and collect cryptocurrency incentives at participating merchants.
For many years, Bitcoin has been regarded as a top investment opportunity. But hold on — a long way to go for this leading cryptocurrency. Nevertheless, a well-balanced portfolio in 2022 may still benefit from its inclusion.
Final thoughts
Bitcoin adoption is still conceivable, even though profit rates may indicate otherwise. When people join the bitcoin market, they expect a lot of volatility and rapid development. They want to see a return on their potential investors’ money that is at least 100% growth. Bitcoin, on the other hand, has already been through this phase. Furthermore, blockchain features like smart contracts, decentralized applications, and non-fungible coins are becoming more popular with customers. Consequently, there is a significant chance that the advantages of virtual tokens will exceed the concept.