2022! What a year it’s been for cryptocurrency, with a track record of boom-and-bust cycles that has left people wondering whether they should invest in crypto or not. Cryptocurrency is volatile and so is Bitcoin (BTC).
BTC, the world’s largest cryptocurrency by market capitalization, fell below US $20,000 for the first time since November 2020.
Bitcoin has lost more than 70% of its value in the past seven months and is currently trading around US $23,021 (as of August 2022).
With the digital currency on a downward trajectory, are we witnessing the end of Bitcoin?
Let’s find out why BTC has fallen and what you can do in these times.
What is Bitcoin?
Bitcoin is the most popular cryptocurrency across the globe, thanks to its positive adoption and profitability.
BTC exists on a public distributed ledger called blockchain technology that is secured by cryptography.
The protocols of BTC are designed in a way that only a fixed number of BTC can be traded, making it the best hedge against inflation.
Many global leaders have come forward in support of Bitcoin and labelled it as the best alternative to fiat or traditional currency.
Carl Runefelt, alias, The Moon, is a global crypto leader who is pushing for the mass adoption of BTC.
According to him, “When Bitcoin or when the world is in some type of volatility some kind of uncertainty, I think that is generally something strong for BTC because Bitcoin has zero third-party risk so no matter what happens, you never have any third-party risk against anything. So, BTC is the safest place in the world to put your money or put your wealth.”
Why has BTC Fallen?
The value of Bitcoin is one of the most discussed topics in the financial market at present.
The current crypto market dip is not going well for cryptocurrencies overall.
Bitcoin, on the other hand, is still performing better against market volatility.
The most important factors which might be responsible for the current BTC dip are:
- Inflationary fears around the world
- The war in Ukraine
- Rising interest rates
- Crackdown on crypto, for example, in China
These factors have fueled a slump in the crypto market.
The total market cap of cryptocurrency has fallen below US $1 trillion for the first time since last year.
But it is gradually regaining its lost value.
Is this the End of Bitcoin?
Considering the current downward trend of Bitcoin, you may be speculating that this might be its end.
But hold on!
Bitcoin, like other cryptocurrencies, is volatile and its value fluctuates with time.
But BTC has withstood the test of time and emerged as the largest cryptocurrency.
This is because BTC is the first-generation cryptocurrency and is designed in a way to act like a stable asset in times of uncertainty.
Carl says, “We will see a huge recession. We will see a big catastrophe monetary disaster when the dollar and other fiat currencies ultimately collapse because I think that’s going to happen due to inflation. And then BTC will rise as the solution. The only safe place I would say actually it’s like Noah’s ark in a way buying Bitcoin today.”
Will Bitcoin Regain its Value?
When it comes to investing, you never know what the future holds.
As quickly as BTC has fallen, it could just as rapidly regain its value.
Bitcoin is a transformative technology with the potential to revolutionize the financial market.
BTC makes trade easier as compared to fiat currency. You can send money to anyone at any time with BTC making it the best alternative to fiat.
In addition, the mass adoption of Bitcoin is a fact, and it is now being used as a legal currency in many countries.
Bitcoin has come a long way since its introduction and has gone through such slumps in the past as well.
But Bitcoin has always regained its value and came back even stronger.
Carl, on his YouTube channel, The Moon, says, “Everyone knows that in crypto, there is always another pump around the corner exactly, and it’s gonna happen sooner rather than later, and when you hold Bitcoin, you’re always safe.”
So, you should hold on to your BTC in these tumultuous times as BTC is all about patience.
When it comes to crypto volatility, experts recommend that you should act with patience.
The current BTC dip has given birth to many faulty stories such as this might be the end of BTC.
You should hold on to your Bitcoin for a longer time considering its remarkable previous comebacks.
It is all in your hands – whether you act patiently during this Bitcoin dip and make a lot of money in the future or sell your BTC and suffer a huge loss.