For the uninformed few that have yet to grasp what is Bitcoin? It is a decentralized digital currency that gets transferred on a peer-2-peer network where every transaction gets verified by network nodes (a point of intersection) using a publicly distributed ledger and cryptographic technology. It was the original virtual form of money to hit the internet (2009).
Twelve years after its birth, in November 2021, Bitcoin was trading at an all-time high at around $69,000 per coin. However, when everyone thought cryptos would take over the world, a sudden shift occurred, and they started experiencing rough times. Bitcoin was no exception to this trend. Going by data from the famous crypto exchange, Coindesk, its price is now hovering around $20,000, meaning it has shed 70% of its value in less than seven months.
The reality is that the crypto market as a whole is going through a valley period, showing one-third ($1 trillion) of the market capitalization it listed in November 2021. Moreover, the news outlet Crypto Head states that cryptocurrency crimes have skyrocketed by 312% since 2016, with most people falling for crypto investing scams. Despite altcoins like Monero and Cardano chiefly getting associated with the dark web, Bitcoin, by far, has the most crime reports out of any crypto. So, with these stats in mind, it is only natural that questions about its safety and investment potential get asked and that doubts loom over the future of the world’s original digital coin. If you want to learn more about bitcoin trading, check Swyftx.
Is Bitcoin Still a Stable Investment?
In April 2022, blockchain analytics firm Glassnode posted a research study in which it projected that 60% of Bitcoin investments would not lose money if the price of this cryptocurrency never falls below $33,600 per unit. Yet, now, it is dramatically under this figure, plunging to $18,000 in June this year, causing many crypto investors to panic.
The main reasons for the substantial crypto price drops are rising inflation and uncertainty around potentially increasing interest rates. The combo of these two has affected crypto assets to fall along with stocks. The jump in living costs has made investors have less disposable income, forcing them to scale back on buying cryptos. Of course, ongoing threats of regulation have played their part.
Regarding advice about potentially investing in Bitcoin, everyone must know that since December 2020, cryptocurrencies have displayed dramatic price ups and downs. They have undergone multiple market crashes and bull runs. So, given the current climate, it seems that the best course of action at the moment is not to invest in Bitcoin but in blockchain technology companies, Bitcoin ETFs, and Bitcoin funds. Visa MasterCard and PayPal have recently accepted Bitcoin, even with many financial experts voicing concerns about digital coins having no intrinsic value. So, their continuous adoption bodes well for the entire crypto market.
Is Bitcoin Good for Transactions?
Its historical volatility is the number one basis why many analysts believe people should not use Bitcoin for online and retail purchases. The primary worry with its use is that the price paid for an item using Bitcoin may be enormously different a few days after the purchase. Nonetheless, a recent survey from the research platform PYMNTS.com reports that 20% of all Americans polled said they would likely make a crypto purchase soon.
Global brands like Whole Foods, Newegg, Starbucks, Etsy, Microsoft, Home Depot, and many others have begun allowing Bitcoin payments, helping it get close to mainstream status.
One industry that has accepted digital money with arms wide open is the interactive gaming sphere. It is no longer a question – do online casinos accept Bitcoin? The chief thing that now interests most gamblers is the category and allure level of the crypto-exclusive promotions such platforms offer. As a rule of thumb, a Bitcoin deposit match bonus will always be more generous if a gambler opts to use cryptocurrencies to claim it. While there is no consensus concerning the best Bitcoin casino on the internet, most veterans are of the school of thought that it is a toss-up between Las Atlantis and Wild Casino.
Still, even in the face of its ever-increasing popularity, a good chunk of the world’s population cannot shake the notion that people buy Bitcoin to hold on to it, hoping its value will jump, and not to spend it on goods and services. Consequently, it will probably not get close to becoming anywhere near an established payment form as USD, the Euro, or the British Pound.
To Sum Up
Things may look dicey for all cryptocurrencies on the surface. Yet, everyone needs to remember that Bitcoin’s price fell below $2,000 in 2017. And that it was at $200 in 2015. Cryptos are still a valuable technology, and this market correction will humble the investor base, but Bitcoin will undoubtedly survive.
This article was written in collaboration with legit iGaming analysts.