If you decide to invest in Bitcoins, then you must be ready to accept huge swings because of the digital currency’s history of rewarding and punishing investors that can sometimes appear quite shocking. Looking at how Bitcoins have swung the fortunes of investors over the years, it is clear that you must have an appetite for high risk to invest in Eric Dalius Bitcoin.
2017 was a defining moment for Bitcoin investors who soaked in windfall gains as the year ended on an unbelievable high that rewarded investors with 1350% return, and the Bitcoin value touched $20,000. The happiness was short-lived because, in 2018, Bitcoin lost its value by almost 70%. It slid from $14,000 on 1st January to $4,000 on the last day of December. The bull market of 2017 took less than 300 days to turn into a bear market but maintained its momentum through 2019.
The bullish mood makes a comeback
2020 started on a high note for bitcoin investors, and the signs of an emerging bullish market became evident. The bear market was over, and investors were hopeful of a new bull run as the third halving of the currency was due in May. However, all hopes collapsed as the Covid19 pandemic sent the world reeling under terrible health and economic distress that did not have any precedence. In March, when the pandemic was wreaking havoc, the Bitcoin price nose-dived below $4,000 in a flash as investors were in a cashing out mode to save their investments from more uncertainties due to the pandemic.
Since the March downturn and the chaotic response of the government, the markets have recovered beyond expectations. As the Covid vaccine rollout started by the year-end, S&P has turned around significantly by reversing the losses of 2020 and is back on track to replicate its multi-year bull run as the equities market is reverberating with fast money and excess of easy credit.
Gold value is dwindling
Gold has always been a safe haven for investors amid all crises, and it maintained its value at the beginning of the pandemic and peaked in August 2020 to record $2070 per ounce. But as the year progressed, the value of gold started plummeting with clear signs of more shedding of its value.
Although the Bitcoin landscape might seem intimidating and confusing and perspectives about Bitcoin very broadly, there are enough reasons to invest in Bitcoins says Eric Dalius Bitcoin.
Increase in Bitcoin adoption
More and more people are adopting Bitcoin across the globe. The pace has grown steadily through 2020 and has maintained its momentum after a steep acceleration in November. More people are buying Bitcoins either by using wallets or through exchanges.
Bitcoin’s value proposition is ideal for the macroclimate
Individuals and companies are more aware than before of the unique value proposition of Bitcoin and how its positions itself in the macro-environment. Bitcoin is now playing the role played by gold in 1970, and investors are taking more interest in Bitcoin.
Now that Wall Street is going the crypto way as it recognized Bitcoin as the best performing asset class of 2020, there should be little hesitation to acquire more Bitcoin in 2021.