Bitcoin is the most crucial currency in the crypto universe, which is now going through hard times. After February 2022, the asset fell sharply in price and cannot yet return to its previous positions. Because of this, there is more and more controversy about whether it is worth buying or mining bitcoins and what this currency can expect in the future.
Arguments in favor of Bitcoin
First of all, Bitcoin is the first cryptocurrency with a huge amount of capitalization. It allows us to confidently say that it will not be able to burst due to minor economic problems.
In addition, bitcoin has several advantages:
- No limits;
- No intermediaries;
- High level of security;
- Favorable international transfers;
- Huge popularity.
Today it is hard to meet a person who has never heard of this asset in his life. Various companies and private investors are constantly supporting this. So for example, the head of MicroStrategy, Michael Saylor, said that he would continue to buy this asset. According to some reports, 129,218 BTC are stored on the balance sheet of this organization, which is equivalent to 4 billion USD at today’s exchange rate. The sharp decline in the asset’s value does not frighten the whale, and he openly declares that he will continue to invest in bitcoin.
This decision of Michael Saylor is explained by the fact that in the previous 2 years, there has been a financial crisis in the United States, due to which the value of various assets, including gold, has increased, but only slightly. At the same time, the cost of bitcoin rose by 220%. During this period, interest in the asset increased considerably, making it possible to increase capitalization significantly.
Other crypto whales also say that they do not seek to sell bitcoins, as they believe that the asset’s value will return to its usual indicators shortly.
Arguments against bitcoin
Not everyone supports the enthusiasm for cryptocurrencies in general. Some well-known economists think that crypto assets are a new kind of lottery or even a scam.
Indeed, many hackers work in this industry, but today there are proven well-protected exchanges (Binance) and wallets where you can safely buy, sell and store crypto assets.
Some of the disadvantages of bitcoin include:
- Unstable exchange rate;
- In some countries, excessively subject to government control;
- There may be security issues.
A particular panic around the state of bitcoin began due to the collapse of Luna and the Terra blockchain as a whole. The value of this asset has fallen to almost zero in just a few days. Small investors were promised to return the invested money, but few people believe in such a development of events. In addition, an attempt was made to restart Luna, but it has already become clear that such a solution was not successful.
For a long time, it was believed that bitcoin was not affected by the political state but by the start of a full-scale war between Russia and Ukraine.
Conclusion
The fate of bitcoin is highly dependent on the upcoming actions of crypto enthusiasts. So, if one of the whales decides to withdraw its assets, then the asset’s value can drop significantly. But, if people continue to buy bitcoin at such a low price, then the cost of this will steadily go up.
Also, some experts note that the future of the currency will also depend on the actions of the US government. If it tightens regulation, it may have a negative impact. If it simplifies and allows the industry to develop more independently, as it was before, then the asset’s value may increase significantly shortly.
In general, it can be said with confidence that when making decisions, it is necessary to monitor the news of the market closely. Still, there are no visible reasons to refuse to buy bitcoin at such an attractive price.