You may think if you should buy bitcoin or not. Considering the latest ups and downs during the last few weeks it has drawn great attention. Many people are asking what is the right time to buy?
Initially, this cryptocurrency was intended to serve or transfer money in a decentralized manner. It makes the transaction beyond the government banks and the central banks. In this world where trust is really a big thing since the financial crisis happened globally in 2007, the bitcoin trend seems appealing to few people as an attractive alternative way.
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This is indeed a new system
Bitcoin is a trading asset that is quite speculative. Many people are quite happy with the role of bitcoin. The growing interest and eco-system highlights development of the bitcoin as a speculative asset than a real currency.
To be very particular, more payment systems and banks like PayPal app now allow bitcoin to stay on their platforms. Either bitcoin can be used in the app to buy new assets or itself this can be traded. In the upcoming months, this is speculated that new regulations will give permission to the permit cryptocurrency ETF’s to get launched –it will give birth to more derivatives.
PayPal accepts bitcoin
In this time, regulator have closed several doubtful coin issues of recent past , especially in the United States. Still bitcoin is one of the most popular ways for money transaction for underworld.
Most of the funds having specialization in crypto currency are rising and the crypto exchanges are drawing attention of the investment funds. BAKKT has recently announced their plan regarding the investment funds.
In a situation where the eco-system is expanding considering the cryptocurrencies along with bitcoin, where the currency role or role in exchange is shortened despite the price moves – it will be tough to function as a reliable payment medium. Additionally, the payment verifiability would be tougher to accomplish.
A ‘tulip’, not a currency
The entry points of the world of the cryptocurrency are under attack. The government has either hacked or shut down the exchange cases. During 2020, almost 80 crypto exchanges are closed. Government is also looking for them or trying to identify and put a tax on them who are investing capital in it or drawing capital from cryptocurrencies.
The central banks especially who are launching their own digital currency have interest on it and its failure.
Tether ball and chain
The regulators and the bankers also concentrate on the irregular bitcoin liquidity amidst the trading network and especially in the crypto coil role that is known as Tether in stimulating the bitcoin purchase.
This is worth noticing from the ESG or Environmental, Social and Governance perspective that bitcoin is a sinner in the governance and social aspects.
For drawing the standards at the same place making it relevant and significant for the investors – what is going on and the social and economic utility has fallen down (its utilization as money), its essential value has went down and a huge amount of price is concocted by speculations.
Not the Right Time for Buying
If bitcoin is the fastest growing trading asset, will it be worth buying now? Many people who are involved in bitcoin trade are also engaged in S&P futures and assets that too in the equity market’s speculative end. Evidence is that the cryptocurrenciess are connected and make the diversification tough.
In this regard bitcoin now is in a very risky end of the market. The numbers of equity market investors using this as a primary steer for the directing the equities are increasing day by day. Keeping this in mind, a great number of investors think it would be wise to wait until the risk factors go down and there is a calmer condition in the market. Most of the investors do not agree to invest in it when the market is in a turmoil. The marketers would wait until the panic is wiped off or the condition gets improved. In the last September, the risk of bitcoin went down below 10,000 level. Rounding up – this is the time of high risks and for the coming weeks, therefore, this is not the right time for getting into bitcoin trade.