Cryptocurrency has gained massive popularity in the financial world, and Bitcoin has been leading the pack all these years as the most widely used digital asset. Its soaring value and high returns potential have appealed to many investors, who have decided to buy bitcoin p2p as they considered it an impressive and promising cryptocurrency. However, there are also skeptics who warn about its lack of regulation as well as its volatility, so the question that comes to mind is,” Should you still buy Bitcoin?” The answer to this question is that it depends. While Bitcoin has always been a risky investment, some individuals believe in its long-term potential and see it as a valuable currency as well as a store of value. In this blog, we will explore the price history of Bitcoin, its utility, and more to help you make your own judgment on whether it’s a worthwhile investment or not. Read on!
A look at Bitcoin’s price history
Bitcoin’s first spike happened between 2017 and 2018, with the cryptocurrency’s price surging by more than 5,600%. Unfortunately, this peak only lasted for a short time, and the value of BTC gradually reduced in the next year. Despite this, many people believed Bitcoin was a good investment in the long run due to its reputation and size.
As a result, in late 2019, Bitcoin started to generate momentum, but it was only at the beginning of the COVID-19 pandemic that it showed its full potential. Between March 2020- November 2021, the price of Bitcoin increased by an impressive 1,657%, resulting in its all-time high of $68,789 and a bullish sentiment around the digital currency.
But again, this peak was short-lived, and the value of Bitcoin fell by 74% between November 2021 and November 2022.
In 2023, however, the crypto king regained momentum – it started at $16.5k, and its price doubled by July of the same year. 2024 has also seen Bitcoin face both ups and downs, and many wonder whether the asset is worth buying today.
Some argue that BTC is relatively undervalued because of its popularity with institutional investors and its global adoption. It’s evident, though, that the downtrend of Bitcoin is mostly influenced by external factors instead of internal ones, which is why many speculate that there could be another price increase just around the corner. However, if you decide to invest in Bitcoin, it’s imperative to consider how much money you’ll put at stake, given that the asset’s price could drop as well.
The utility of Bitcoin
When trying to decide if Bitcoin is a good investment, it makes sense to consider the utility of the coin. Essentially, Bitcoin is used mainly to enable transactions in a decentralized way, which many people consider safer and cheaper.
For a long time, the popularity of Bitcoin revolved around this aspect, empowering people to no longer rely on centralized banks to handle their payments, but rather, stepping outside the system and choosing Bitcoin. And given that Bitcoin received a first-mover status, it became the go-to option for those who felt enthusiastic about making decentralized payments.
However, as more people embraced cryptocurrencies, new and exciting projects started to emerge, challenging Bitcoin, such as Solana, Ethereum, and Cardano, to name a few, creating endless possibilities for dApp developers.
This had an impact on the reputation of Bitcoin due to the fact that the crypto king lacks utility compared to these other projects. So, does this lack of utility make Bitcoin any less valuable as a crypto asset? Not necessarily. Many people think that Bitcoin has inherent value because of its scarcity, which is why they continue to buy it. However, others are more interested in an asset’s utility, which is why they look elsewhere, choosing projects like Ethereum instead.
What do high-authority figures believe about Bitcoin’s potential?
Experts often give their own opinions on whether it is a good time to buy Bitcoin or not, which obviously impacts the minds of retail investors. Elon Musk is one of the influential figures who has said in the past that he wishes to see Bitcoin succeed and that he will continue to support cryptocurrency throughout time.
Michael Saylor is another strong advocate for Bitcoin, and its US-based business intelligence company has actually turned into a big corporate holder of Bitcoin, owning a huge number of coins. Saylor believes that Bitcoin is “the digital transformation of the property, money, energy, matter, and currency” and that there’s a strong likelihood that the asset will be valued at over $65,000 in the next four years.
So, should you buy Bitcoin or not?
Sentiment towards Bitcoin has been bullish in the past, but now it’s definitely not so. Because of different macroeconomic factors, its value has decreased considerably, especially over the past year, which may cause some investors to feel less confident in buying it.
Bitcoin undoubtedly still plays a major role in the growth of the cryptocurrency market, but its first-mover status has paved the way for exciting projects to emerge, and some people prefer those projects over Bitcoin. Of course, this doesn’t mean everyone will turn their backs on Bitcoin because it still remains the “king” for some.
Despite its drop since the peak price it experienced in 2021, Bitcoin is still one of the best crypto assets to invest in, especially if you’re in the crypto game for the long run. In fact, institutional investors see Bitcoin as digital gold, making it invaluable in their eyes.
Overall, buying Bitcoin is a personal decision, and it’s essential to consider both the pros and cons and only make a choice once you’ve gained enough knowledge about how this asset works. Depending on your circumstances, aspirations, and risk tolerance, Bitcoin could either be a good investment for you or an asset you should steer clear of.
If you do decide to buy Bitcoin, we recommend having a diverse portfolio instead of just opting for this asset alone. While Bitcoin is a relatively safe investment with strong potential, it’s worth adding other assets to your portfolio, as not only could they outperform Bitcoin, but spreading your investment over multiple types of tokens will help you mitigate risk effectively.
The bottom line
While nobody can tell for sure how Bitcoin will perform in the future, the asset still holds great promise, and it could offer substantial returns to those who invest in it in the long run. However, before buying BTC, it’s important to take the time to decide whether it’s a good fit for you.