What You Need to Know About the Bitcoin Price Rise
It wasn’t that long ago that Bitcoin (BTC) dominated headlines for its massive growth, with many cryptocurrency millionaires being made. The Bitcoin price surged ever upward and many people thought the gravy train would never stop running—until it did.
Prices crashed, investors abandoned the space, and lots of people lost money. Cut to today and we’re seeing another big Bitcoin price surge; is this time any different?
I’m of a mind that investors ought to think twice before jumping back in on Bitcoin.
Bitcoin made waves when it once again crested above $5,000. Considering that it started 2019 around $3,700, that’s a healthy bit of gains.
The beginning of 2019 saw Bitcoin and many other cryptos fall into a hole and suffer there for a while. But while the Bitcoin price is on the rise again, I’m not sure we can call it saved just yet.
You see, the most important thing that Bitcoin lost during the huge fall last year was investor confidence. Without that, no asset can survive long.
When Bitcoin last rose, everyone said that it—and cryptocurrencies more broadly—had turned a corner.
Before that, it was prone to hacking and its future was more the stuff of sci-fi and computer-geek fever dreams than anything else. Then, all of a sudden, it kept climbing and climbing until everyone had to pay attention. That’s when it eventually hit the $10,000 mark and beyond.
But we already know how that story ended. With all that goodwill surging behind it, and with all the Bitcoin evangelists proclaiming that the cryptocurrency was here to stay, it began to drop. And drop fast.
Whether you believe in the future of Bitcoin and other cryptocurrencies, one thing you can most certainly count on is the fickle nature of investors. When prices began falling, people abandoned ship in droves and sent prices crashing.
That brings us to today. The potential is obvious within Bitcoin; we’ve already seen it hit five digits. But so too is the downside.
Cryptocurrencies may or may not be the currency of the future; that’s for others to debate. What is beyond debate, however, is that this is still an extremely volatile market.
That is to say, you’d have as good a chance predicting the wind as you would predicting Bitcoin prices. The market is simply way too uncertain to be able to promise gains.
So while this recent surge is a nice bump and I, without a doubt, believe that money can be made in cryptocurrencies, investors beware. This is not the place to bet your retirement funds.
Instead, if you can stomach the volatility, this is a high-risk, high-reward asset that could pay off with massive gains (or result in massive losses).
It’s nice to see Bitcoin gaining again as it passed the $5,000 mark for the first time in 2019, but investors who are looking for a safe long-term investment may want to look elsewhere.
Bitcoin still leaves many questions unanswered and is far too volatile for those unwilling to stomach high degrees of risk.