Bitcoin is known for its high volatility spikes, although it’s the first and most used cryptocurrency on the market. With a considerable market capitalization, a limited coin supply and consistent mining requirements, Bitcoin made its way towards the top of the crypto environment. Now, the asset is widely accessible, so you can buy Bitcoin fast and efficiently in a few simple steps.
Despite numerous challenges, Bitcoin is still going strong, with investors waiting for the next halving in 2024. It is only the fourth halving since the beginning of Bitcoin, and it will bring a new block reward of 3.125 BTC. There will also be a fifth halving expected in 2028 when the reward will reach 1.5625 BTC.
As Bitcoin develops, considering the limited supply, it goes towards its end, so if you want to learn how to buy Bitcoin, now’s the perfect time. Experts forecasted that the last Bitcoin will be mined somewhere around 2140 when its value and price increase considerably. And, considering the new state of Bitcoin, it became one of the most stable asses on the market, being compared to gold.
Bitcoin volatility was lower than gold
This year, experts noticed something unbelievable about Bitcoin. Within five days, its volatility was lower than gold's, which has been one of the most reliable assets for centuries. The observation was similar in the case of stocks. Although similar periods of steadiness are natural for every cryptocurrency, this moment was rare and impressive because it lasted this long.
But how profitable was this moment for investors? Well, depending on their risk management, some could’ve taken advantage and traded more tokens. However, this might not have been the best time for profits since higher volatility spikes bring investors considerable returns.
Why was this event so important for Bitcoin?
Bitcoin and all cryptocurrencies are considered risky and not worth it for most people, especially in the volatility case. Indeed, in Bitcoin’s past, some periods were so unstable that the asset’s price went from very low to very high in a matter of days. Of course, these occurrences are not beneficial for short-term investors and harm long-term investors’ plans and portfolios.
However, Bitcoin being less volatile than gold shows that the asset is slowly becoming more stable due to its lowered supply. On the other hand, demand increases since regulations are being settled and people across the world have access to information and tools that allow Bitcoin investing. For instance, people in Africa can buy or sell Bitcoin through their telephone SIM cards with the help of a third party. Moreover, in El Salvador, Bitcoin became a legal tender, therefore paving the way toward adoption and local acceptance.
Still, what are Bitcoin’s challenges?
Despite volatility, which is a considerable disadvantage, Bitcoin is flawed from numerous perspectives. First, the environmental concerns might be the most worrying, especially since governments are fighting to lower carbon emissions and pollution. Bitcoin mining is one of the worst factors that alter the environment because the process requires expensive computational power that not only does not get recycled but also consumes a lot of energy, sometimes the equivalent of an entire country.
Bitcoin mining was condoned many times for not offering similar chances to people who wanted to start mining because there’s no possible way of making a decent income with mining as a beginner. In some cases, newbies join mining pools or find other alternatives to get the most out of Bitcoin, but that’s still not enough to overcome the energy costs.
At the same time, the regulatory challenges seem to have to end for now. The SEC institution made it clear that they view cryptocurrencies as dangerous for any type of investor, regardless of their experience levels, and have continued to either delay BTC ETF projects or sue exchanges, from Coinbase to Kraken, due to lack of proper security.
However, creating a regulatory framework for cryptocurrencies proved to be challenging since the SEC recently made it clear that Bitcoin is a commodity and the rest of altcoins are considered securities. Unfortunately, recent occurrences showed how the SEC might change opinions about tokens being securities, which provides nothing but more confusion for investors.
What is the future of Bitcoin since it has stabilized more?
Bitcoin has become more stable through the years, so it has a bright future ahead. Once regulation issues are solved, and mining might be easier to perform for anyone interested, the cryptocurrency has the chance to get adopted globally and become a reliable financial alternative for customers.
It’s not sure when that will happen, but there’s plenty of time until it reaches its coin supply. From that point, miners are expected only to receive income from transactional fees from Bitcoin, so investing might not be profitable anymore.
Regardless of what will happen to Bitcoin, what’s sure is things will change as the world takes a step further in innovation and development. If governments ensure more than guidelines on crypto taxation, investors can safely increase their portfolios with Bitcoins without fearing severe changes from these institutions. It’s already the case with ETFs since the SEC has only approved a few projects and has delayed numerous, but these assets are proven to be one of the most revolutionary in recent years.
Once the SEC approves BTC and ETH ETFs, investors will freely and safely trade them on the market, increasing their incomes and market experience. Hence, if this goes on until Bitcoin’s final token, the crypto environment could provide more significant availability to customers than regular banks and financial institutions, changing how people can use money and improve their lives.
Bitcoin’s volatility reached lower levels than gold, one of the oldest and safest assets in history. This monumental occasion showed how digital assets could become stable and reliable for people, but also that innovation takes time to become valuable in any market. Therefore, this five-day period in which Bitcoin was less risky to invest in than gold was revolutionary to the crypto community, and we hope it has proven that Bitcoin is made for the future. Its value stands in scarcity and technology.