: Own Bitcoin Now: Reap Benefits of Growing Digital Currency Adoption
• Cryptocurrencies are becoming increasingly popular, with over 22,000 coins currently in existence.
• Bitcoin has become part of many institutional investors’ portfolios, leading to a change in its price dynamics.
• Correlation between Bitcoin and traditional financial assets has increased, lowering the chances of extreme price movements.
Cryptocurrencies have been around for more than a decade now and the industry has evolved exponentially during this time. Currently, there are more than 22,000 cryptocurrencies in existence making it difficult for traders and investors to keep track of them all. As such, many turn to cryptocurrencies with larger market capitalization and more established reputations within the investing world as a way to avoid being scammed or investing in projects doomed to fail.
Bitcoin Price Dynamics
As digital currencies became increasingly accepted by the investing community, Bitcoin has become part of many institutional investors‘ portfolios. This adoption came at a cost however as can be seen from its price evolution chart which shows how it took years for Bitcoin’s price to break through $20,000 resistance level after first trading above $1,000. Now that resistance is support and further large-scale movements like this are unlikely due to Bitcoin’s correlation with traditional assets increasing significantly.
It is important to remember that nine out of ten blockchain projects end up failing so caution must be exercised when investing in cryptocurrencies. In 2023 alone 83 coins failed due to ICOs not meeting their goals or having no purpose whatsoever so it pays off to do your research before investing in any crypto asset.
Should You Own Bitcoin?
With all of this said it can be concluded that given the increasing adoption rates of digital currencies owning some Bitcoin could be beneficial but caution should still be exercised when doing so. Investors would do well to consult experts on the matter before making any decisions about their investments in order to minimize risk while potentially maximizing gains from their investments into cryptocurrency assets like Bitcoin.
Cryptocurrencies have come a long way since they were first introduced over a decade ago and with institutional investors beginning to adopt them there is potential for great gains provided that adequate precautionary measures are taken beforehand by investors looking getting involved in this new asset class.