Is Bitcoin (BTC) Still a Strong Investment?

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The fears of the predicted trade war between China and United States has agitated the global asset markets. Several assets have reacted in a predictable manner. In the past few days, Bitcoin (BTC) has refused to rise. Bitcoin price index (BPI) Statistics show that the world's biggest cryptocurrency has fallen by 9%. Investing in cryptocurrency has always been hypothetical since the market is unregulated. If you are thinking of investing in crypto-tokens, you must be a risk taker.

Past Crises

The value of cryptocurrency has fallen by more than 80%, which was mostly caused by the great concern of Cyprus' (Mediterranean nation) financial state in 2013. After a year, the price of Bitcoin (BTC) increased enormously as traders of cryptocurrency reacted to the possible exit of Greece from the Eurozone.

Why isn't Bitcoin (BTC) moving higher as markets bother over a potential trade war?

If cryptocurrency price benefited from these crises then why is digital currency losing value as the circulation of trade war talk continues? Bitcoin (BTC) isn't the haven that most people thought of in the past. The cause of this situation might be Bitcoin (BTC) not having similar liquidity as gold since assets like gold have much gateways and liquidity bridges that enable flows from and to bonds, stocks, and ETFs. Most of the investors fear taking money out of stocks and put into cryptocurrency since Bitcoin (BTC) does not have a framework yet.

Bitcoin's High Unpredictability

Bitcoin (BTC) has a characteristic of being extremely unstable both in its own internal crises and dramas and random hour to hour swings, and this can undermine its appeal as a safe haven. The experience of a high rise in the cryptocurrency in 2017 brought a strong pullback. The value of Bitcoin (BTC) does fluctuate even through a day with significant rises in the morning hours and decline towards afternoon. But what is the Bitcoin's price today? Is it going up? The changing of prices Bitcoin (BTC) is not new to investors as it reached $19,500 December 2017 and fell to $6000 early this year. Last year there was a lot of speculation but still unproven potential of blockchain which tremendously increased the value of Bitcoin (BTC).

Bitcoin (BTC) has shown to be risk asset due to its strong volatility. Sometimes the cryptocurrency works well but is still risky to invest in.

A New Investor Base

The experiences the investor base has gone through might be the cause of Bitcoin (BTC) failing to work as a good asset to invest in. At the start of cryptocurrency, certain groups of people like libertarians and technologists flocked to Bitcoin (BTC) because of its decentralized feature. Nevertheless, there has been an increase in the interest of digital currencies by a large number of people in the world, this has led to the skyrocketing of its total market value over the past years. The base of Bitcoin (BTC) has grown to a broader base of investors. Investors who have invested their assets in equities are now finding new choices as rumbling in the bond and stock market increase.  

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Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content

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