Bitcoin forecast
Image by KI
Advertisment

The Bitcoin price has fallen to $82,000 (€75,000). Is it worth getting into it now? Here are the pros and cons.

Strong market fluctuations and one dip after another: Should investors get in now?

Bitcoin (BTC) has experienced significant market volatility over the past seven days. Following the first crypto summit at the White House, the crypto veteran plummeted from around $92,000 to $77,000. The coin then briefly recovered and fought its way back to $86,000. At the time of writing, the cryptocurrency has fallen again – to $82,000 – representing a loss of 1.67 percent within 24 hours.

Investors are now rightly asking: Will 2021 and 2022 repeat themselves? Is now the time to get in? Back then, BTC had plummeted sharply due to economic crises. In 2021, it fell to around $30,000, and in 2022, it fell even further to $20,000. Those who invested back then were able to enjoy gigantic growth at the all-time high of around $110,000.

Will this happen again? Bitcoin predictions are, as always, difficult. While some speculate about the cryptocurrency’s demise (a well-known example is Bitcoin critic Peter Schiff), others expect growth in the millions. Michael Saylor, CEO of Strategy (formerly MicroStrategy), is among those convinced of the latter.

As usual, it’s not just Bitcoin that’s affected. The entire market has been hit hard. Other popular cryptocurrencies such as Ethereum (ETH) and Solana (SOL) also experienced sharp declines. This once again highlights how unstable the sector can be. Geopolitical tensions and trade conflicts between the US and China are adding further pressure.

Pros and Cons – The Pros and Cons of Bitcoin

Let’s take a sober look at the whole dilemma. What are the arguments for and against buying Bitcoin?

Pros
The following arguments speak in favor of a purchase:

  • Potential for high returns: Historically, Bitcoin has performed best compared to other investment types and has brought investors high profits.
  • Decentralized system: Bitcoin’s decentralized nature makes it particularly attractive for investors looking to hedge against inflation.
    Limited supply: Bitcoins are not available in infinite quantities. There is a total “quota” of 21 million Bitcoins. A limited supply generally results in high demand – and correspondingly high prices.
  • Easy access: Those who decide to invest don’t have to wait or search for long. Investors can purchase Bitcoin around the clock – on trading platforms such as Coinbase or Binance or from banks such as N26.

Cons
However, there are also arguments against a purchase. These include:

  • Market fluctuations and high volatility: Cryptocurrencies are significantly riskier than traditional investments or ETFs. Investors can gain significantly more, but they can also lose. Everyone should be aware of the risk.
  • Lack of framework conditions: Even as cryptocurrencies become increasingly popular and are gaining acceptance even among traditional institutions, regulatory uncertainty remains.
  • High energy consumption: From an ecological perspective, Bitcoin’s high energy consumption is questionable.
  • No clear practical use: Bitcoin’s usefulness depends on the perspective. While there are real use cases, whether the coin will be used as a currency or more as a digital store of value in the long term remains unclear.

The current decline in the Bitcoin price poses the question for cryptocurrency fans as to whether now is a suitable time to get involved. The decision should be carefully considered. Generally speaking, due to the high volatility and existing uncertainties, investors should only invest amounts they can afford to lose in an emergency.


Join our Newsletter



RELATED ARTICLESMORE FROM AUTHOR