Since its introduction to the public in 2009, Bitcoin has had a considerable number of ups and downs. Recently, the price of Bitcoin has plummeted. This can make investing in it quite daunting and intimidating. However, now might actually be the best time to purchase Bitcoin. If you’re on the fence about purchasing cryptocurrency, take a look at our in-depth guide below. You’ll learn everything you need to know to feel confident in your investment decisions.
Bitcoin is a kind of cryptocurrency. It is a virtual currency that has been designed to act as a form of payment outside the control of a certain person, group, or entity. Cryptocurrency removes the need for the involvement of a third party in financial transactions.
Bitcoin became public in the year 2009. It was introduced by an anonymous group developer, or group of developers, who went by the name of Satoshi Nakamoto. Since then, bitcoin has grown to become the most well-known form of cryptocurrency.
Bitcoin Price History
The price of bitcoin has changed dramatically since it was first introduced. It went from being worth less than a penny to tens of thousands of dollars. In fact, in November 2021, Bitcoin reached an all-time high of just over $68,000.
The Early Years
When it was originally developed, bitcoin didn’t have a standard price. When a price was decided upon, it fluctuated from a ¼ of a penny to eight pennies in the space of 3 years. It wasn’t until February 2011 that bitcoin broke the $1 barrier and did not take too long.
2013 was a big year for bitcoin.
At the beginning of the year, it began trading at $12. And, by the end of November that same year, it was trading at $1242. This was an astounding record high. However, the price layer dropped and stayed in the low hundreds for some time.
From 2016 To 2020
During this period, bitcoin had a run that frequently drew comparisons from experts to the dot-com bubble that took hold in the late 1990s. In 2016, the price of bitcoin steadily rose until it once again moved past the $1000 mark in 2017.
In fact, by December 2017, the price of bitcoin had reached just under $20,000. Whilst this was a bubble, and prices did begin to fall dramatically again, in 2019 prices would reach over $10,000 for a brief period before falling into a small, four-figure lull.
When the COVID-19 pandemic hit in 2020, interest in bitcoin rose once again. Beginning at $7,200 at the beginning of the year, bitcoin made it back into the five-figure region by the middle of the summer. By 2021, bitcoin was reaching all-time highs.
From 2021 To Present Day
In 2021, the price of bitcoin had reached into the $60,000s. However, this bubble was also going to burst. When Elon Musk stopped people purchasing Teslas with bitcoin, and China cracked down on cryptocurrency, bitcoin dropped.
As previously mentioned, in November 2021, the price of bitcoin reached an all-time high. However, this bubble was also short-lived. Shortly after reaching the astounding high of $68,789.63, the price of bitcoin dropped to around $30,000.
And this is where it currently remains at the time of writing. Unfortunately, it is very hard to predict where the price of bitcoin will go next. Some argue that it will fall below $10,000, but other experts have made bold price predictions, saying it could reach over $100,000 soon.
Should I Invest In Bitcoin Now?
As discussed above, the price of bitcoin is currently at a low. In fact, it is currently less than half of its all-time high. As such, if you have considered purchasing bitcoin in the past, it is likely that you now feel as though it is too late to buy.
Such dramatic downturns in the market can be very intimidating, especially when they’re as dramatic as the recent bitcoin crash. However, you might be surprised to learn that now might actually be the most opportune time to purchase bitcoin.
Whilst we understand that the low and plummeting numbers can be daunting, it essentially means that bitcoin is ‘on sale’ at the moment. As such, if you’ve been on the fence for a while, now is the time to act.
It is worth noting that nobody really knows what the future of bitcoin will look like. Consequently, at the moment, there is an air of uncertainty regarding cryptocurrency, which is why many large investors are moving away from this risky asset.
But, there is mounting evidence to suggest that the price of bitcoin will reach highs again at some point, and we know that this air of uncertainty will fade. We do believe that the price of bitcoin will boom again, so if you buy now, you could reap significant rewards in the future.
Is Investing In Cryptocurrency Right For You?
Before you invest, it is important to really consider whether investing in bitcoin, or any cryptocurrency for that matter is appropriate for you and your finances. Even though now is a good time to invest, it is always a bad idea to rush into these things.
It is necessary you understand that cryptocurrency does come with a higher risk than most stocks. This is because it is speculative and hard to predict. As such, if you don’t enjoy investments that come with risk, investing in bitcoin is probably not right for you.
Likewise, cryptocurrency is volatile. If you’re going to invest in bitcoin, you need to be able to handle this volatility. When the price of bitcoin rises, you can do incredibly well. However, when they fall, they tend to fall very hard. You need to be prepared for this.
Finally, if you’re looking for a short-term investment, bitcoin likely isn’t appropriate for you. Whilst investing right now is a good idea, no one really knows exactly when the price will recover. As such, you may need to handle the volatility for quite some time.
The price of Bitcoin has taken a dive over the last year, and no one truly knows when it will recover. However, don’t let that put you off. Purchasing bitcoin at the moment is a good idea, you just need to be prepared for a potentially lengthy and volatile investment.