Today, most people are worried about the recent decline in Bitcoin. As a result, they’re contemplating cutting their losses and selling to avoid it falling further. However, this is even the right time to invest more in Bitcoin.
You might be wondering if this is the beginning of the end for Bitcoin; what you need to know is that, historically, Bitcoin has always bounced back to produce mind-bending returns.
What are the factors behind Bitcoin’s low?
There were many factors behind Bitcoin’s downfall, however, the confusion caused by the tweets of Tesla CEO Elon Musk had the biggest impact.
Elon Musk’s tweet
Just like he did when his tweets boosted the value of Dogecoin, Tesla CEO Elon Musk’s tweets played a big part in the recent decline of the world’s largest digital currency.
The price of Bitcoin began to fall when Elon Musk announced via Twitter that Tesla is suspending Bitcoin purchases due to environmental concerns. The company’s decision to accept Bitcoin payments and buy $1.5 billion worth of the currency in February helped push Bitcoin to a record high of over $63,000 in April. However, the fear that Musk’s enthusiasm for cryptocurrencies has cooled has had the opposite effect.
U.S. probe on Binance
Another factor is the US probe on Binance. The Commodity Futures Trading Commission (CFTC) has announced it is investigating Binance, one of the world’s largest cryptocurrency exchanges. Binance operates another platform in the United States that complies with stricter regulations It has a smaller selection of coins, a different fee structure, and fewer features. As a result, some believe that this move may reflect a tougher stance across the cryptocurrency industry.
The Best Reasons To Buy Bitcoin Now
The key point we’re trying to make with this article is that you shouldn’t be discouraged; because Bitcoin may be down but it’s certainly not out. Therefore, here are the key reasons why we believe Bitcoin will bounce back stronger than ever.
It’s still the dominant cryptocurrency
Even if Bitcoin’s dominance has diminished in recent weeks, it remains the leading cryptocurrency in terms of market value. The original cryptocurrency, Bitcoin, is worth about 50% of the $1.8 trillion cryptocurrency market and has the potential to remain number one for a very long time. Thus, investing in the number one cryptocurrency is still a smart idea.
The higher trend of Bitcoin’s hashrate
Bitcoin’s hashrate is down in conjunction with price action and that is not unexpected. The bottom line is that the decline in hash power is in line with the underlying trend and is ready to rebound, as was the case with each decline in hash power. Therefore, with the hash rate greatly reduced, the difficulty of mining new Bitcoins is reduced and this will attract miners back into the network.
It is still scarce
Bitcoins continue to become scarcer regardless of the ongoing mining activity. Bitcoin is not only lost daily but it’s often burned to create value in other parts of the cryptosphere. Oftentimes, Bitcoin is in a wallet recorded on the blockchain; however, the keys to retrieve them are lost. The bottom line is, like most commodities the scarcer it is, the higher the price.
Final Thoughts
I believe you should focus on the big picture here. If you’ve ever believed in Bitcoin you will know that now is the worst time to panic and the best time to keep getting involved, or even better, to buy more Bitcoin. Given the potential and promise of a big rise in Bitcoin, I think the easiest and most fool-proof strategy at the moment is to buy more Bitcoin and keep it safe. Subsequently, you’ll be sitting on a nice increase in your net worth.
