Is Bitcoin worth buying in 2023? Well, despite its highly volatile price action, Bitcoin has been receiving a lot of attention from the investor community leading crypto experts to conclude that the digital currency is still worth buying in 2023. The coin has also performed exemplarily well in the past, having appreciated by more than 100%+ in the year to date. Its prices are also expected to continue rising in the foreseeable future, and all these make the lead cryptocurrency a must-have for most crypto investors.
Before the May 2021 Bitcoin price crash, you had probably interacted with several crypto analysts who said the coin would reach 100k before the end of the year. After the crash, you probably have also come across a lot of optimistic analyst opinions and price predictions suggesting that the coin will pick rapidly and resume its early 2021 price rally. Five months after the crash, on 10th November, the coin hit its all-time high of $68,789. Currently, Bitcoin has dropped from its ATH, but is this the last dip before Bitcoins ran towards 100k? Should we be buying Bitcoins today in anticipation of the much-talked-about price breakout?
We answer these questions, tell you why Bitcoin is popular despite its wavy price action, and reference the opinions of leading crypto experts in telling you whether you should be buying Bitcoin today?
First, though, we get a proper understanding of what Bitcoin really is.
What Is Bitcoin (BTC)?
Put simply, Bitcoin is a digital currency built on a highly decentralized peer-to-peer technology and used in facilitating instant payments/transfer of value. Bitcoin can also be referred to as a type of cash that is wholly virtual and created through transaction confirmation and validation on the Bitcoin blockchain. It is the pioneer cryptocurrency and was created and launched in 2009 by a pseudonymous individual using the alias Satoshi Nakamoto.
It was first picked up by the cryptography nerds before permeating into the global finance industry, where it is designed to replace the conventional fiat currency. Today, the legacy digital currency is making steady inroads into the global economy, where it is used by a few as a medium of exchange and a store of value. Its greatest success and influence a decade after its launch, however, can be traced to the investment world, where it has received massive adoption as a speculative investment product.
This adoption in the investment world and the promise of future acceptance as a replacement of the fiat currency in settling payments and storing value has played a key role in helping the crypto asset grow its value immensely.
Having started out as a largely valueless crypto technology, the Bitcoin blockchain network has morphed into a Trillion Dollar financial product, with the value of one Bitcoin reaching as high as $68,000.
Today, it is the most popular and by far the most sought-after cryptocurrency.
Let us now try to explain why it is popular.
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Why Is Bitcoin (BTC) So Popular Right Now?
Bitcoin is popular today because it currently is considered a safe and highly profitable investment. It is also popular because it has been picked up by the finance industry thought leaders who made it the centre of discussion for any cryptocurrency debate. One may also add that its highly volatile and unpredictable price performance has helped keep it at the centre of major financial news, effectively giving it more eyeballs from every corner of the world.
Other factors that have played an equal role in advancing Bitcoin's popularity today include:
First mover advantage: Bitcoin is the first cryptocurrency ever built. It introduced the technology with which all of the other alternative currencies have been built on. This first-mover advantage ensured that it received more publicity and also made it the most probed and researched crypto asset. And all these reviews and research papers have only served to boost its popularity.
Celebrity endorsements: Bitcoin has been hugely adopted and embraced by numerous celebrities, entrepreneurs, and finance industry leaders. From serial entrepreneurs like Elon Musk, technology space leaders like Jack Dorsey, celebrities like Kanye West, and celebrity investors like Mark Cuban, it seems like everybody look person is investing in BTC and letting the world know about it. This has the effect of piquing the interest of their mentees and followers, who, in turn, help create a global buzz about the pioneer digital currency.
Institutional adoption: The adoption of Bitcoins by the retail industry has also played a critical role in advancing its popularity. Today, the most popular airlines present you with the option of paying for tickets using Bitcoins, e-commerce stores present you with a Bitcoin payment option, and your money model management fund could also have presented you with a Bitcoin-centred crypto portfolio. As more institutions embrace Bitcoin as a medium of exchange is an investment product, they too help fuel the already popular Bitcoin buzz.
But should the coin’s popularity influence your Bitcoin buy decision?
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Should I Buy Bitcoin (BTC)?
Ideally, the decision to invest in Bitcoins should be driven not by its popularity but by your confidence in the coin’s ability to earn you decent profits in the future. It should also be informed by such factors as your crypto trading experience, disposable income, and risk tolerance. Most importantly, and regardless of your faith in the lead crypto coin, we advise that you only invest what you can afford to lose.
So, Is Bitcoin (BTC) Worth Buying In 2023?
The volatility and unpredictability of Bitcoin price make it practically impossible to determine the best time to invest in the digital currency. There, nevertheless, are two convincing reasons why Bitcoins is a good buy today; first, it is currently trading more than 13% below its peak price, which means that there is plenty of room for upward growth - making it a good long-term buy. Secondly, Bitcoin’s volatility and daily trade volumes have surged, making it the perfect investment for day traders.
Additionally, the majority of crypto analysts and current BTC investors are confident that Bitcoin’s price will keep soaring in the near future, just like they did at the end of 2021, when the Taproot Upgrade rolled out.
Further, the mining reward is expected to halve in 2024, an event that usually precedes a wild price rally.
There, therefore, is an overwhelming conviction within the crypto circles that BTC will be worth way more at the end of the year than it is today. By 2025, most price predictions place Bitcoin’s price at between $100k and $500k. The more optimistic one, like CoinDesk editor Ollie Leech, is confident it will reach $1 Million in the next 5 years, while a recent study by Finder.uk involving crypto industry players concluded that Bitcoin could reach $4+ Million by the end of 2025.
All these say that Bitcoin will continue earning its investors decent profits moving forward, making a worthy buy for both its short and long-term Bitcoin traders.
But even as you plan on buying your first BTC or adding to your stash, you need to familiarize yourself with the benefits and risks associated with Bitcoin investments.
Why Should You Buy Bitcoins (BTC)?
Here are three reasons why buying Bitcoin in 2023 could be such a good idea:
Potential for massive profitability
There is an overwhelming amount of evidence suggesting that Bitcoin prices will continue rising in the foreseeable future. By buying now, when the coin is still low-priced, you are setting yourself up for massive profitability in the future when its prices eventually rise.
Bitcoin is turning out to be a safe investment by virtue of the fact that it is always uptrending. This makes it a valuable alternative investment product for anyone looking to diversify their portfolio.
Companies like Microstrategy are investing in Bitcoin to hedge their investments and cash reserves against the imminent inflation threat posed by the wanton printing of fiat currency by the government during the pandemic. You, too, may consider investing in Bitcoins today to hedge your investments against the risk of inflation.
Risks Associated With Bitcoin (BTC) Investment
As is the case with all other cryptocurrency and conventional investments, a Bitcoin portfolio carries its fair share of risks. The two most impactful include:
Volatility is Bitcoin’s greatest asset as well as its biggest undoing. It is a highly speculative investment product, and there is no telling what it will be worth or the direction its prices will take in the next minute. It, therefore, is not a suitable investment for the risk-averse.
Because of its massive popularity and adoption, Bitcoin has found itself on the wrong side of legislation as several countries seek to pass regulations restricting its influence in the banking industries. Some like China have banned the coin and barred institutions in the country from offering crypto services or interacting with Bitcoin/crypto service providers.
Conclusion: Is Bitcoin (BTC) Worth Buying?
After weighing the benefits of investing in Bitcoin against the potential risks, you will realize that the benefits far outweigh the risks. Further analysis indicates that Bitcoin price will continue increasing in the foreseeable future and that the coin will earn its investors decent profits moving forward. These, plus Bitcoin is currently trading at a ‘dip’ convince us that BTC is worth buying in 2023 both as a short and long-term investment.
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