Investing

What To Do With Bitcoin Investment In 2019

Forbes noted that in July of 2018, the price of Bitcoin (BTC) spiked past the $US 8000 mark fueling speculation that it may return to the heights it had previously tested in the past. After a few months however, it was noted that the price continued to plunge, settling at somewhere between $US 3000 and $US 4000 in January 2019. For many crypto speculators, the days of quick movement and fast cash are over. However, there are still a large amount of people who are “hodl”ing onto their BTC stash, waiting for the predicted rise in value. What do the business experts have to say about the possibility of another BTC bull run this year?

Price Fluctuation is Evident

BTC has shown its penchant for trading in a volatile manner and because of that, it’s very likely we’ll see a lot of spikes when it comes to BTC over this period. Coin Telegraph states that, in December of 2018, BTC volatility tripled, despite the fact that prices over this period were plummeting. This may be good news for traders who intend to short the coin as a commodity, since it creates a lot of good setups if the value of the coin continues to fall. However, for those who already have BTC in their portfolio, it’s just a matter of waiting out the fluctuation and seeing where the final price leaves you.

Playing the Long Game

Many of the adopters of BTC that got in when the coin had already breached massive highs are currently suffering the losses, but once they hold onto the coin itself, the losses may write themselves off. Most predictions for BTC see it being stable and even gaining ridiculous amounts of value in a five to ten-year span. Some predictions even place the maximum realized value at twenty years, citing things like inherent scarcity of the coin as well as adoption by international banking institutions. BTC already serves as a standard for other cryptocurrencies, and this means that if any of those get adopted as a viable alternative to fiat currency, there should be a knock-on effect that impacts the value of BTC as well.

External Factors should be Considered

Coin Codex notes that in the long run, external factors like BTC futures trading can lead to a decreasing of volatility in the market through increased liquidity. Additionally, as more and more investors get drawn to BTC, more and more value will pour into the network and increase its presence. These things suggest that, instead of a short term outlook on BTC, investors ought to think about the long term gains. Despite its inherent differences from traditional financial instruments, the supply-demand curve is still in operation and the scarcity of the coin will eventually lead to increase in value, provided it becomes adopted in a more widespread manner.

Riding the BTC Train is Dangerous

In the past, fortunes could be made in a matter of hours on BTC using Harga Bitcoin. Today, that scenario has completely changed. Just like all other financial instruments, it is a risk that the investor is taking and such risk should never be taken lightly, nor with money that is necessary to fulfil other needs. BTC’s future is still murky, but signs are strong that we will see it increase. This year will be crucial to BTC’s continued success over time, especially based on the wider acceptance and usage of cryptocurrencies. We are also likely to see a cleanup of “junk altcoins” on the market as they lose value and slowly drop off the radar, leaving the handful of resilient coins to retain their value and improve. While the immediate future of BTC is a bit of a black box, it’s long-term outlook is still relatively secure. 2019 will serve to cement this opinion if bitcoin rises. For those who aren’t already in BTC, it is important to note that just like every other security instrument, investment should only be made with funds that the investor can afford to lose.

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