5 Cryptocurrency Tips For Beginners In 2021
Why are people buying bitcoin and cryptocurrency? One may think that bitcoin is just a bubble that has no value at all, and other cryptocurrencies are just scams
This accusation may be correct in some way, but do not forget that it is human who determines the value of a good or service.
For example, people think that a $2,000 Louis Vuitton bag is justifiable because they think the design or quality is superior. The same goes for Bitcoin. People believe its unique offering worth $9,000 per bitcoin (as of this writing)
Bitcoin is immensely useful and has never been seen before in a way. Regardless, here goes the three factors for investing in Bitcoin: utility, scarcity, and demand.
Before I continue, In case you are worried about what all these
Cryptocurrencies are heading to, DON’T GIVE UP!!!
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Could Bitcoin’s bull market end next month?
No that’s very unlikely, for the following 3 reasons
Institutional Investors (MicroStrategy, Grayscale, Tesla, Square) are jumping on Bitcoin right now like there is no tomorrow.
For example, Grayscale, which is now the largest Bitcoin holder holding 4% of all Bitcoin is now holding $45B in total and 87% of Grayscale investors are institutional investors.
Bitcoin has reached near maximum legitimacy with nearly every reputable investment firm, large Fintech company (Blackrock, Fidelity, JP Morgan, CitiBank, Bank of England, Paypal, Poker Sites buying $100M worth of Bitcoin, Square) buying and predicting Bitcoin at $200,000+ soon and institutional investors piling into Bitcoin.
The same goes for retail investors, that’s why Bitcoin is currently bought double as much Bitcoin as actual Gold
3. Bitcoin’s 4-year bull cycle
Bitcoin is at the end of its 4 years halving cycle, which has always brought a 100x return from bottom to top so far. The bottom this cycle was $3,100.
Conclusion
To sum it up
- Risk is as low as it has never been before in Bitcoin’s history and the upside in the near future is as high as never before. That is a perfect time. The stimulus money comes on top of that.
- Everybody is investing in Bitcoin now. If everybody is investing in Bitcoin, it’s a good time to invest in Bitcoin and big gains can come within a short amount of time.
The stars have all aligned now.
This will keep inflating the Bitcoin bubble until it pops later this year at probably around $200,000 or so, so you should sell once we are getting close to $200,000.
The only thing holding Bitcoin and Ethereum back right now are transaction fees.
Once Optimism finally launches and transaction fees drop by 99% from currently $50 to $0.5 within a couple of months, we could see an NFT, Defi altcoin frenzy on Ethereum and also a large reduction in Bitcoin transaction fees through Bitcoin mostly being traded on Ethereum via WBTC.
Once, transaction fees are minimal again, we could see Bitcoin go to $100,000 and Ethereum to $10,000 until June.
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