Bitcoin millionaires have come and gone and come again since the first digital blockchain money was produced back in 2009. Since then, a torrent of new coins have entered the market, some of which, like Bitcoin, have appreciated by 1,000%, 2,000%, or even more.
The obvious issue is whether it’s still too late to invest in cryptocurrencies in the midst of all of these spectacular gains. The fact is that no one can predict whether cryptocurrency will increase in value or decrease going forward because it is a completely uncharted sector that is neither well-defined nor well-regulated. However, there are strong arguments for both sides of the question of whether or not it’s time to buy.
It’s too late: authorities are taking action
One of the concerns about investing in the cryptocurrency market has always been that governments will ban the creation and even acceptance of the coins. The moment may have already arrived. China started to crack down severely on bitcoin mining and trade around the end of May 2021, which caused the price of cryptocurrencies to spiral precipitously. Chinese authorities are eager to see their own digital currency in the shape of the yuan become the main unit of account in the Chinese economy, according to Boris Schlossberg, managing director of BK Asset Management.
More lately, far-flung nations like Singapore, Estonia, and Iran have started their own crackdowns. Demand and support for Bitcoin and other cryptocurrencies could collapse if other governments follow suit.
It’s Still Early: Crypto Is Far Below Recent Highs
There may not be a better moment to purchase cryptocurrencies like Bitcoin because they are currently on sale if you think that the cryptocurrency market is just another form of the stock market. As of Nov. 12, Bitcoin was back below $63,000, more specifically closer to $62,000, while other cryptocurrencies had decreased by an equal or greater amount. While Bitcoin has come a long way since its lows of approximately $40,000 in September, it is now down a whole 10% from its record high, which it reached just a few days before its most recent dip.
Big dips like this are not at all uncommon, as Bitcoin’s history demonstrates, yet the cryptocurrency has consistently managed to reach new highs. The present sell-off may be a time for you to test the market if you were interested in Bitcoin a few weeks ago.
The value of cryptocurrency is about to zero
Cryptocurrencies, according to skeptics, are a class of assets without a store of value, an entry barrier, or any value as a medium of exchange. Because of this, detractors see cryptocurrencies as merely speculative investments that won’t last as legitimate asset classes in the long run. Jeff Schumacher, the founder of BCG Digital Ventures, stated this about Bitcoin during a CNBC-sponsored discussion in Davos, Switzerland in 2019: “I do believe it will go to zero. Although I think it’s a brilliant technology, I don’t think it should be used as money. It isn’t grounded in anything. Famous investor Dennis Gartman stated the same thing to Bloomberg in 2020, warning that Bitcoin may eventually reach $0 if central banks “refuse to give up their monopoly on monetary policy.”
