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Investing and Trading; Is this the Perfect Time To Invest In Bitcoin

5 min read


Investing and Trading; Is this the Perfect Time To Invest In Bitcoin

According to Glassnode, one of the data sources in the crypto market, there are over $27 billion of open positions in bitcoin features. Since early March 2021, Bitcoin broke a record by surpassing over $60,000 on its market value. The rise in bitcoin price made investors speculate and hold for higher prices within the year.

However, April 23rd was not all well for the majority of investors. The highly volatile digital currency plunged below $50,000, causing significant losses. Some economists termed the plunge as a normal market behavior. There is no day bitcoin will miss out on headlines; either investor is praising it or facing critics.

Whether you are a beginner or professional in crypto market trading, there is a simple rule: buy low and sell when the prices are at their top. If you own no bitcoins, you can go for the smallest unit of bitcoin (Satoshi). As a beginner, satoshi will make profits by keeping an eye on the crypto market and executing sales at the right time.

Investors have to understand that the bitcoin trade is not a life-changing investment. But investors can use it as a cash cow to milk profits bit by bit. Investing in bitcoin can be the best decision for its ability to hedge against chaos. Although it resent plunge two days ago, bitcoin is yet to rise beyond gold. So how steady is the bitcoin supply.

How Stable Is Bitcoin's Supply
Bitcoin supply is ever fixed and will never exceed $21 million bitcoins. It closely relates to its granddaddy gold that also has a fixed supply. Gold is one of the crucial assets that protect the purchasing power of money today. But bitcoin is taking a similar formation in the digital currency. It is the fixed supply that has made it so popular.

Investors are going for both assets intending to protect their money from inflation. With the pedantic hitting hard, economies will demand more to sustain themselves from the impact. When looking at China, U.S., and Europe, all economies will spend multiple trillion dollars aimed at stimulating money due to the pandemic.

Economists say any unprecedented money printing will dilute money in about ten years to come from now, as recently announced by the federal reserve. That will see the dollar cut off its purchasing power to almost a half. Unlike bitcoin and gold, which have a fixed supply, fiat currencies are at the risk of losing value by half. Bitcoin is taking a diversion by decreasing the supply, commonly known as Halving. That put you in a position as to why you should have some stakes invested in bitcoin.

Investors should keep in mind that there can never be an excess of 21 million bitcoins. Bitcoin's technology is highly computerized to regulate issuance. Bitcoin miners are responsible for doing complex mathematical problems with the help of computer programs. To repay, whoever does it first earns 12.5bitcoins as a reward.

If Halving happens a day from now, the rewards will decrease to 6.25 bitcoins. In a year, the supply of bitcoin will drop from at least 675,000 to almost 337,500 bitcoins. The sufficient cause to the values is due to a supply cut embedded in bitcoin's code.

Bitcoin Demand
Before settling on bitcoin investments, the demand should help make the decision. When looking at future statistics, the world economic forum forecasted that the underlying bitcoins will claim 10% of the world's GDP five years from now. A total of $8.6 trillion translates to 295,762% compared to $2.9 billion today.

The demand of 500 million stock investors will soon get to buy cryptos with just a click on their devices. Brokerages are to roll out crypto services to the demand for safe-haven assets that are yet to explode. That will ignite a rally that will see bitcoin rise in prices.

Conclusion
If you are an investor looking to invest in cryptocurrencies, begin with buying bitcoin. A satoshi is enough to make a difference. Today all you need is to invest in small portions to get some life-changing gains bit by bit. It is the best time to own bitcoin.