Bitcoin (BTC.X) is trading at $4,330.84, up 15.08% from yesterday. Bitcoin price has been very volatile lately. Upon reaching its new lows, investors were starting to wonder about the upside opportunity. Here are the questions we frequently get about Bitcoin as far as investing in it:
- Is Bitcoin currently a buy or a sell?
- Should I sell or hold Bitcoin today, if I purchased it 3 months ago?
- Is Bitcoin a good buy/investment opportunity?
Here are some bits of knowledge you show have about Bitcoin before you take any transaction actions. First, let’s look at the reasons to buy Bitcoin (a.k.a., the bull case):
1. Bitcoin was the first coin that is recognized globally–even large, institutional investors are opting to invest in it. In a number of nations, laws have been passed that allow institutional investors to join the crypto market, ultimately leading to a mass adoption of the coin.
2. Unlike other cryptocurrencies, Bitcoin has never faced reliability and scalability issues.
3. Because of the recent price correction, it has a healthy valuation. Its value in early 2018 was almost 20,000 USD, which fell by over 80% in a few months afterward. Its cycle of price spikes and dips opens up good opportunities for the traders to jump in.
4. The number of Bitcoins which haven’t been mined is very small, i.e., only 20% of the 21 million Bitcoins. Since the number of coins that can be produced is restricted until 2040, there could definitely be another spike in Bitcoin’s price.
5. Bitcoin is not under a central authority like gold. Under no circumstances will the value of your Bitcoin investment be wiped out because of a single government’s decision.
After reading those good five reasons to buy Bitcoin, let’s also look at the reasons to sell it (a.k.a., the bear case), in case you already possess some coins:
1. The continuous crash of Bitcoin price over a long period of time is becoming a serious concern to investors. This detracts people from investing in it.
2. Crypto volatility is creating permanent damage to the BTC ecosystem. If we look at the past five price corrections in Bitcoin’s history, we can find out that 80% of the retracement was off of the lowest price levels, which indicates that there might be a further fall in its price in the upcoming period.
3. Bitcoin will rally when it demonstrates real value and solves important problems. So far, it hasn’t demonstrated yet. Its commercial viability is declining as the time goes by.
Lastly, investors who had already bought Bitcoin, are liquidating their investments in order to avoid losing more money.
Over the last 30 days, BTC.X lost -43.13%. Where will it go from now?