Bitcoin was the first ever cryptocurrency and is also the most well-known out of all the cryptocurrencies. The price of bitcoin hit a record high recently. The entire cryptocurrency market value surpassed $1 trillion for the first time. Bitcoin makes up over $700 billion of the total market value of the entire cryptocurrency market. Many experts are saying that this is just the beginning.
Many people are wondering if it is the right time to invest in bitcoin because of all the hype. But the cryptocurrency brings with it some concerns that people should know about. For instance, some people worry that bitcoin is a bubble and because of its volatile nature, it is too risky to invest in or susceptible to fraud.
Is bitcoin too risky?
Most people see bitcoin as a highly risky investment compared to most other traditional investments. We can look historically at the price value of bitcoin. There have been a number of occasions where the price had really spiked. However, in most cases, soon afterwards the price comes crashing down. For instance, after going up to around $20,000 in 2017, bitcoin’s price crashed and lost a third of its value in just one day. The price went down to as low as $3,122 in 2018. This caused a wipe out of billions of dollars from the entire cryptocurrency market value.
The element of risk can be reduced with the help of a trading robot or an automated trading platform. These tools have made profitably trading Bitcoins easier. Try the Bitcoin Loophole app, this AI powered robot will automatically trade for you by speculating on Bitcoin.
It is important to know that in the world of investments if something could mean big returns, it could also mean huge losses. This is why most investors in the crypto world, especially those who like to gamble a little with bitcoin, advise investing only as much money as you can risk losing. This way you will be mentally and financially prepared if the Bitcoin’s market crashes. Many investors also support holding bitcoin for the long term. This is because there is a limited supply of Bitcoin, so when the demand goes up in the future, the price will as well.
How easy is it to convert Bitcoin to fiat or transfer it?
Normally, most Bitcoin transactions are completed by converting bitcoin to fiat currency. PayPal’s consumers will be able to use cryptocurrency as a payment method now when paying merchants or businesses that accept PayPal. However, what this really means is when a consumer will pay with Bitcoin, it will be instantly converted to fiat currency. The transaction will also be settled with the PayPal merchants in fiat currency.
As of now, the process of transferring Bitcoin to other accounts and converting it to different currencies has been made very easy due to the technological advances and the digital nature of Bitcoin. With the help of online exchange platforms that can be used anywhere around the world, these tasks can be performed almost instantly. Bitcoin transactions will usually come with low transaction fees or no transaction fees at all.
However, many sellers do not have the confidence to do large transactions yet in bitcoin. We think that this could change over time. Many online businesses have already started accepting Bitcoin. With PayPal’s huge user base around the world, it wouldn’t be wrong to say that wide adoption of cryptocurrency is happening. In the future, technological advances could make it even easier to spend bitcoin with quicker transactions that are cheaper, and more efficient.
Is Bitcoin a bubble?
Those who are tired of Bitcoin are concerned that the digital currency’s current rally is similar to the 2017 bubble. Bitcoin’s current market situation is being called by a lot of investors as the biggest market bubble right now. A huge increase in Bitcoin’s price in such a short time period has caused people to think that a crash is soon going to follow.
However, experts are saying the rally in 2017 was not similar because it was driven by speculation from retail investors. On the other hand, institutional investors buying Bitcoin is the main reason for the current rally. Bitcoin has also gained support recently from big investors and notable financial companies. The price of Bitcoin might keep on rising. However, the naysayers suggest it will come to a bad ending.