The crypto boom took many by surprise. In 2011 when 1 BTC was worth $1, no one gave much thought to it. Over the years, it rose in value and people began paying attention to it. By 2017, you had to have $20,000 to buy one bitcoin. People withdrew their life savings to invest in cryptocurrency. Just when things were going great, the first bitcoin bubble hit and the value went down to $11,000 in the same year. The value went further down to $6200 in 2018 and many lost hope in the entire thing.
When you look at the crypto trends, it can be easy to think that you are too late to make an investment. Sure, the price is at its all-time high currently but the fear of what happened in 2017 is ever-present. If you are wondering whether you are late to the party or not, keep reading.
The role of Covid-19
Believe it or not, the Coronavirus has had a direct impact on the price of cryptocurrencies. If you don’t believe us, check your cryptocurrency blogs and find out for yourself. See, because of the pandemic, governments have had to print more currency to minimize the spread of the virus. When more currency is printed, inflation almost always ends up happening. People know this and to cushion themselves from it, many have turned to crypto. For the better part of 2020 and early 2021, there has been a rise in the number of crypto investors. High demand means high price. Thankfully, bitcoin is not like government-regulated currencies. It has a limit of 21 million coins only. Because of this, inflation is impossible.
Where are the giants putting their money?
In early February, the price of BTC shot up from $38,000 to $48,000 over a period of 24 hours. This took place after the big giant Tech Company Tesla made a massive Bitcoin purchase. To cause a 26% price increase, the company must have put in a pretty penny. Tesla is not the only large-scale corporation to invest in crypto in recent months. Others including Microstrategy, Square, and Stone Ridge have also bought big crypto coins. This means things are looking up in the world of crypto otherwise these big corporations wouldn’t have put their money there.
It is too late to invest?
You can tell by now where this conversation is going. It is not too late to invest. As the pandemic continues to spread, more and more people are rushing to crypto to save their cash. This means the price will go higher in the coming years. Add that to the fact that all the bigwigs in the corporate world are moving in that direction as well and you have a hopeful and rewarding investment in crypto. Plus, it is safe as humans cannot crack the code, it is a futuristic investment, and it lowers the risk of going under in case of a recession.
Having said that, you should always know that investing in crypto has its own risks. The 2017 bubble can happen again. Think long-term rather than short-term. And be smart about your investments to avoid losing money.
Is it late to invest in cryptocurrency? The answer is no. That kind of mindset is toxic and will mess your thinking. You will lose out on an opportunity that could potentially change your financial story. Just exercise caution when investing and you’ll be just fine.