Bitcoin: don't wait any longer to invest in crypto currencies

Bitcoin: don't wait any longer to invest in crypto currencies

Investors and individuals now are the right time to invest in cryptocurrencies and buy yourself bitcoin!

Cryptocurrencies 2021: A safe investment?

ATn like computers, the Internet, or artificial intelligence, cryptocurrency is one of those technological revolutions that are part of the landscape before making a lasting contribution to our daily lives. Created in 2008, the virtual currency was during the first phase a rather marginal technological object, with a very low price. It was not until 2016 that bitcoin started a bullish curve, with a first peek at the end of 2017 at almost € 17,000. After a phase of fluctuation and a valuation of € 10,000, the value of bitcoin started to rise again, this time peaking at more than € 54,000 in mid-April 2021. Since that date, the value of bitcoin has fallen again and seems to stabilize below the € 30,000 mark. Despite these discrepancies, investing in cryptocurrencies is interesting if we consider the evolution of the value of bitcoin since its creation. 

How is the price of a cryptocurrency determined

A cryptocurrency like bitcoin is a volatile and speculative currency. Its price is evaluated against other fiat currencies such as the euro (on 6/8/2021, one BTC was worth € 27,036) or the dollar (on the same date, one BTC was worth $ 32,857), etc. But unlike these currencies, cryptocurrency does not benefit from an official price. Its rating is determined based on an average established from the price of exchange platforms (Coinbase, CoinDesk, eToro, Bitcoin Average, etc.). This results in a price variation between platforms that it is interesting to study closely if you are determined to invest in cryptocurrencies and buy bitcoin. 

As cryptocurrency is speculative, its price is set according to the market, that is to say, according to supply and demand. Its value depends on its rarity. In the case of bitcoin, the founder of the Bitcoin protocol limited the number of bitcoins that will eventually be created to 21 million. Currently, there are about 17 million bitcoins or 80% of the global mass that will be reached in 2140 if we follow the current protocol. The supply is currently controlled by miners (the creators of bitcoins), who generate new bitcoins daily to fuel the market, and by investors who own large volumes of bitcoins. 

The demand to buy bitcoin is very important, as evidenced by the high price of the cryptocurrency. Buyers absorb all bitcoin in circulation on a daily basis. This dynamic is supported both by professionals who want to buy bitcoin and by the general public who want to invest in cryptocurrencies and want to take advantage of the facilities they offer to pay for an increasing number of goods and services. 

A risky investment, but very favorable prospects  

Despite the risk inherent in a speculative and volatile currency, the future outlook for cryptocurrency appears very favorable. In particular, we can see the emergence of specialized sites, such as GC Trading, which allow you to follow all the crypto news. Among these, the creation of the ETF BTC (investment fund in virtual currency), accessible on stock exchanges, simplifies access to the market for individuals who wish to buy bitcoin. The fact that cryptocurrency trading is structured builds the confidence of investors and the general public and anchors virtual currency in global finance. The development of technological solutions such as the Lightning Network to increase the capacity of Bitcoin (blockchain) contributes to the establishment of a more accessible and fluid ecosystem for professionals and individuals alike. The fact that big bosses invest in cryptocurrency also reinforces the reliability of an alternative currency that has been around for over 10 years now. Finally, the dynamics of the market and the valuation of bitcoin since its creation are also decisive factors that can encourage you to invest in cryptocurrencies.

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