It is of no surprise to anyone that Bitcoin is currently undergoing a bearish trend. In the past months, this has caused a lot of people to become apprehensive, as novice investors start to question whether or not now is the right time to sell and cash-in profits. While it can be a great idea to take profits, there isn't necessarily a reason to become too anxious over the future of the premier cryptocurrency.

Experts project that Bitcoin could reach $26,500 or even $25,000 in the upcoming months. These price points are viewed as the next major support levels, and if Bitcoin can reach these levels, there would be a lot of opportunity for cost averaging to occur. Furthermore, a retreat to either of these values can be viewed as a healthy correction.

The reason why Bitcoin should be viewed as a sound investment over the next couple years is due to the fact that banks are in a precarious situation. The Federal Reserve is doing what it can to ensure the survival of the larger, “too big to fail” banks. However, smaller banks can fail in the coming months and be taken over by the big ones, which would lead to said big banks having a monopoly on financial services.

This is a dangerous scenario to get into where people have their money stored somewhere in a bank. Not only will people be exposed to the risk of their banks failing, but the low interest rates would be rendered almost useless when accounting for the rate of inflation. To counter this, some financial advisers recommend to invest the money in short-term treasuries, as it pays an adequate interest rate without locking people in for a long time.

Gold, silver and Bitcoin are all forms of sound money, in the sense that they all possess the same qualities of being a store of value, a medium of exchange, as well as being divisible. But keep in mind, Bitcoin is relatively new and it is normal for a lot of volatility to occur. It is not uncommon for the price to experience large swings based on the US dollar. Despite this, Bitcoin follows a cyclical pattern of growth over time, unlike fiat currencies like the US dollar, which have to be constantly printed in order to stay alive, resulting in devaluation.

At its current value which hovers around $28,000, many analysts believe that Bitcoin is gradually inching closer to its bull run. Consequently, if the cryptocurrency operates like it has in the past, it can be anticipated that investors with a greater understanding of what Bitcoin is will buy up Bitcoin as the price decreases even lower.

The bottom line is that governments and organisations can not eradicate Bitcoin. Rather, it is a currency of the people and investors need to educate themselves to best protect themselves from the future turmoil.



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