Bitcoin (BTC) Cryptocurrency: Is It A Buy Right Now?

Last Updated September 12th 2022
7 Min Read

Bitcoin now offers a favourable balance of risks and potential rewards, according to experts. Bitcoin (BTC) represents a good buying opportunity following a selloff that has left its coins down 50% one-year to date.

Wondering 'is bitcoin a good buy?', you're on the right page. In this article, we'll be sharing some of the top reasons why it could or couldn't be worth investing in. Before you put your money on Bitcoin, here’s everything you need to know about the flagship crypto.

The king of cryptocurrencies, Bitcoin, has sparked a worldwide revolution that empowered countless people to dive into the blockchain world and accept it as a viable investment asset. Consequently, BTC is often touted as “digital gold” as its value is considered akin to gold in the crypto space. 

Bitcoin has had a significant rally from 2009 but with its fair share of volatility. However, thanks to the dedicated community support, it has always bounced back. As a result, it is still the most popular token for traders, investors, and institutions alike despite the emergence and popularity of other cryptocurrencies.

After humble beginnings in 2009, the coin crossed $1,000 for good in 2017, then followed a steep but bumpy path to an all-time high of roughly $69,000 in November 2021. It scraped as low as $33,000 in January 2022, then climbed to $47k in March, following the crypto market crash BTC hit the low of $17K in June, before rebounding to its current market price of about $22,000. 

While Bitcoin may not yet share gold's status as a store of value, the crypto king is gradually gaining acceptance and could have a place in your investment portfolio depending on your goals and risk tolerance. So is Bitcoin a buy, hold, or sell right now? Read on to find out.

The Leading Cryptocurrency — But For How Much Longer? 

Thanks to solid fundamentals, Bitcoin is only likely to recover from its lows and keep soaring.

Unlike the stock market, which opens and closes at set times during the week, Bitcoin is accessible to buy, sell and trade 24/7, along with other cryptocurrencies. In addition, crypto investors can access Bitcoin on many cryptocurrency exchanges.  

Just like any speculative investment, buying Bitcoin carries risk. Since its inception, Bitcoin was the 1st digital asset to lead the digital currency ecosystem. It grew an underground following of investors who saw it as a possible replacement to the physical monetary system. Now Bitcoin has become a household name as institutions and governments develop ways to serve their customers' growing demand for exposure.

Similar to how the internet was once a speculative investment, Bitcoin has received similar criticism. In reality, Bitcoin‘s current adoption rate has outpaced that of the internet in 1998, and millions of people now own Bitcoin. 

In 2021, El Salvador became the first country to make Bitcoin a legal tender; Paraguay and other countries look to follow suit. The personal decision to invest in Bitcoin comes down to your appetite for risk and your perspective on the future of humanity. For example, Russia has stated they are looking into cryptocurrencies to lower their dependence on the US dollar. Bitcoin has the potential to disrupt the US Dollar massively, and it is simply too big to be ignored at this point.

Notably, a traditional investor could buy Bitcoin to hedge against inflation and the potential collapse of the fiat-based economy. Without a doubt, Bitcoin’s volatility is a concern for many. However, volatility is expected to decrease forever as institutions and governments enter the market with long-term interest. 

Check Out: Ways to Make (or Lose) Money With Bitcoin (BTC)

buy bitcoin

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Road Ahead For Bitcoin 

Find out more about the fundamentals and the road ahead for Bitcoin.

More than 15,000 cryptocurrencies have been created and are being traded on exchanges since Bitcoin’s debut. Blockchain has become a household word and is being touted as a solution to complex problems. After initial hesitation, institutional investors are also making a beeline toward crypto-assets as a form of investment.

The next decade could prove of significant importance to Bitcoin's evolution. Revolutions within the financial ecosystem aside, there are a couple of areas in Bitcoin’s ecosystem to which investors should pay close attention. 

Currently, cryptocurrency is poised between being a store of value and a medium for daily transactions. Institutional investors are eager to get in on the action and profit from the volatility in its prices even as governments around the world, such as Japan, have declared it a valid form of payment for goods. 

Bitcoin for Mainstream Transactions 

The mainstreaming of Bitcoin as a payment mechanism (or its increasing attractiveness as an asset class) will not occur without technological improvements in its ecosystem. To be considered a viable investment asset or form of payment, Bitcoin’s blockchain should be able to handle millions of transactions in a short span of time. Several technologies, such as the Lightning Network, promise scale in its operations. 

New cryptocurrencies that have formed as a result of hard forks of the Bitcoin blockchain, including Bitcoin Cash and Bitcoin Gold, aim to adjust the parameters of the ecosystem in order to handle more transactions at a faster pace.

In 2018, Ripple’s CTO David Schwartz compared Bitcoin to Ford’s Model T. The automobile's manufacturer heralded a revolution in transportation, and an entire ecosystem, from highways to gas stations, evolved to serve the automobile. Thanks to extensive media coverage, the beginnings of an ecosystem have already taken root in the past couple of years.

As regulation evolves to keep pace, it is likely that the ecosystem will expand. Notably, Schwartz predicted that the next decade will “bring an explosion of low-cost, high-speed payments that will transform value exchange the way the Internet transformed information exchange." 

First-mover Advantage and Liquidity 

Bitcoin is arguably one of the most liquid investment assets due to the worldwide establishment of trading platforms, exchanges, and online brokerages. You can easily trade Bitcoin for cash or assets like gold instantly with low fees. The high liquidity associated with bitcoin makes it a great investment vessel for short-term profit. Digital currencies may also be a long-term investment due to their high market demand. 

Strong Network Fundamentals 

One significant reason for Bitcoin to skyrocket even after its crash is its strong network fundamentals compared to other cryptocurrencies. Through its global transaction network, Bitcoin can be securely and seamlessly sent across borders, at a lower cost, without the need for trusted third parties. 

As the methods for sending, receiving, and storing Bitcoins continue to improve, the number of active wallet addresses on the Bitcoin network is also rapidly increasing. This is a vital sign of the vibrant and growing financial ecosystem that Bitcoin will initiate.

Global Adoption 

Another significant reason for Bitcoin’s price appreciation is its growing adoption as a payment method. There are over 36,000 Bitcoin ATMs worldwide, and almost 15,100 businesses accept it as a payment mode. 

Earlier, PayPal (PYPL) announced that it would allow its merchants and users to buy, hold, sell, and accept Bitcoin as a form of payment. Therefore, 350 million PayPal users can now buy, sell, and use Bitcoin, boosting its value and adoption in the market. 

Apart from PayPal, several other applications like Venmo, Square, and CashApp also accept cryptocurrencies, making the audience for Bitcoin wider than ever. 

Surging Institutional Adoption 

Several companies have been accepting BTC as a payment option for some years now. Still, most of them were extremely difficult to define since they were primarily online, which brought doubts about their legitimacy.

In October 2020, PayPal accepted Bitcoin (BTC). PayPal has over 26 million merchants, which use PayPal for their business transactions. Including BTC as an option of payment aside from Bank Transfer, VISA and MASTERCARD will go a long way to help grow the sector.

In March 2021, the CEO of Tesla, Elon Musk, tweeted that people "can now buy a Tesla with Bitcoin." Later he backtracked on this statement but has recently said it could be an option again.

Prominent personalities like Social Capital’s Chamath Palihapitiya and famed hedge fund investors Paul Tudor Jones and Stanley Druckenmiller supported Bitcoin earlier this year. As per Cipolaro, the global head of research at NYDIG, after the recent market crash, “institutional investors have had a buy-the-dip mentality during these risk-off events, suggesting increasing ease with handling Bitcoin’s volatility.”

Therefore, all these factors expose the interest and trust of inventors in the future potential of Bitcoin as a viable investment option. 

Read Also: Bitcoin (BTC) Price Prediction

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Is Bitcoin A Buy Right Now? 

Bitcoin is a buy right now. As a long-term investment, it projects that Bitcoin could perform very well. According to its predictions, the value of the BTC coin could rise to $100,000 in 5 years. That's a sustainable investment option.

Thirty-three analysts rate BTC a buy or strong buy. Overall Bitcoin cryptocurrency appears to be a good investment. Experts who follow the crypto market have high expectations for Bitcoin, and it still appears to be unstoppable. But investors who are thinking of getting into the leading crypto now need to understand that they are unlikely to see the growth rates the coin saw early on. If you decide to get in now, it should be to hold the coin for the long term.

A Coin Under Close Watch — Now And Always

With the worldwide adoption of cryptocurrencies as a mode of payment and a valuable asset class, the price of Bitcoin is likely to keep increasing. Furthermore, as digital assets are endorsed and used by corporations and government departments in their daily functions, Bitcoin will gradually become an inevitable part of the future.

With the array of institutional interest, increasing price rallies, worldwide acceptance, adoptions, and numerous other network developments, Bitcoin will likely soar again, reaffirming its position as a valuable investment asset.

So. is Bitcoin a good investment? It can be, so long as you do your research and invest wisely. Investors might, however, turn Bitcoin into a bad investment if they try to treat it like any other short-term asset.

eToro – Best Platform To Buy Bitcoin

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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