It is still very challenging to predict the future of Bitcoin. Is it going to be a store of value that is as widely accepted as gold? Or, is it going to be a worldwide reserve currency? It’s certainly an interesting discussion.
Last year, El Salvador became the first country to make bitcoin a legal tender. We’re pretty sure that other countries are going to follow suit, copying this move so that they can attract innovation.
At the same time, there are a number of countries across the world where Bitcoin is banned. We may also see some countries follow this move to try and save their fiat currency.
Because of this, you may be wondering whether or not now is the time to get involved in Bitcoin, i.e. before more and more countries follow El Salvador.
What we must stress is that we cannot tell you whether you should or should not invest in Bitcoin. After all, it is a personal choice, and we do not know anything about your current financial situation. However, what we can do is give you an understanding of Bitcoin as an investment so you can make your own judgment.
No matter what investment you make, there is always going to be a risk, and Bitcoin is no different. From the very beginning, Bitcoin was the first digital asset to beget the current ecosystem of cryptocurrencies.
For a period of time, it attracted an underground following of investors who believed that Bitcoin would be the future and even potentially replace the physical money system.
Today, we’re standing at a point in time whereby Bitcoin has become a household name, as governments and institutions develop different ways of serving the growing demand of customers for exposure.
In a similar way that the Internet became a speculative investment, Bitcoin has garnered similar criticism. However, impressively, the adoption rate of Bitcoin at the moment is outpacing that of the Internet back in 1998. Millions and millions of people now own Bitcoin.
As mentioned earlier, El Salvador became the first country to make Bitcoin a legal tender. This happened in 2021, and there has already been some talk of a number of countries following suit. Paraguay is a prime example.
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El Salvador is also the first and only country that has Bitcoin in its treasury. At the start of this year, the country has 1,800 Bitcoin. Furthermore, Nayib Bukele, the President of El Salvador, is not shy when talking about the subject, announcing his purchases on the social media platform Twitter.
As the conventional finance world realizes the disruption that Bitcoin could make, they need to decide whether or not they are going to adopt cryptocurrencies. If they don’t, they could be staring irrelevance in the face.
The personal decision on whether or not to invest in Bitcoin is all about your perspective on the future and your appetite for risk. For instance, Russia has revealed that they are looking into cryptocurrencies because they want to reduce their dependence on the US dollar. However, needless to say, Russia’s not exactly a country we want to be looking at in terms of investment right now!
There is the possibility that Bitcoin could disrupt the US dollar in a huge way, and it has become too big to be ignored at this rate.
The main reason why a traditional investor may want Bitcoin exposure is so they can hedge against inflation and the possible collapse of the fiat-based economy.
The volatility of Bitcoin is a concern to a lot of investors. However, it is expected that this volatility is going to decrease as governments and institutions enter the market with long-term interest.
Of course, we must stress that nothing is a guarantee, though. As is the case with any investment, all we can do is make our best judgments based on the information that is out there at the moment.
If you have decided that you want to purchase Bitcoin, you need to figure out how you are going to buy it. A lot of this will be based on where you are based, for example, you can check out this guide on how to buy bitcoin in Canada. There are plenty of other country-specific guides like this on the Internet today.
You can purchase Bitcoin from many centralized cryptocurrency exchanges. You will need to have an exchange wallet where you hold your funds. Make sure you choose a safe and reputable wallet so that you can have peace of mind that your Bitcoin is going to be protected.
Now that you have a good understanding of the Bitcoin market at present and its investment potential, it is important to look at how you go about investing in Bitcoin. Simply investing in Bitcoin is not guaranteed to bring you success. You need to have a strategy. So, let’s take a look at some helpful tips on how to invest in Bitcoin:
So there you have it: everything you need to know about Bitcoin and whether or not this is still an excellent investment in 2022. While Bitcoin may not be as cheap to acquire as it was in 2012, it is certainly less risky today. The move for it to become a legal tender in El Salvador was a big one, and it shows that there is still a brighter future ahead for this cryptocurrency.
However, as is the case with any investment, there is always a risk, and only you can decide how much you feel comfortable investing.
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