Is investing in bitcoin still profitable today?

Bitcoin was highly valued at the time, and people who invested in this cryptocurrency made a lot of money. After that, people became aware of the world of cryptocurrencies and started to invest in different cryptocurrencies. But recently, bitcoin has started to make a name for itself again, and people have started to have question marks in their minds again. Is investing in bitcoin still a sensible move? Bitcoin can still be seen as a cryptocurrency that people invest in, but it is necessary to examine this in detail. Today, we’ll talk about whether investing in bitcoin still makes sense in 2024. If you have some questions about this topic, you can resolve some of them by reading this article.

What is Bitcoin?

Bitcoin and many other cryptocurrencies are just like regular currencies. They have their own value, but the only difference is that they are digital. So we can call them digital assets. By using these cryptocurrencies, you can avoid the fees that would normally be deducted from your transfers at banks. So using cryptocurrencies means minimizing the fees charged by banks. At the same time, these cryptocurrencies you know are not physical assets like bitcoin; you can only access them on the internet. The creation of this Bitcoin involves a series of numbers and letters, and through these numbers and letters, a code is generated, and as a result, these cryptocurrencies are created. Bitcoin uses blockchain technology. And they take place in a decentralized system. This means that there is no single center to which they are all connected. People can play games with different cryptocurrencies, such as Bitcoin, at reliable betting sites or casinos they find on betpack.com, or they can benefit from the value of these cryptocurrencies in different places on the internet.

2022 Crash of Cryptocurrencies

If you are closely involved in cryptocurrency investments, you have certainly noticed and seen this collapse. In 2022, other cryptocurrencies, led by Bitcoin, were on the decline throughout your lifetime. Among the reasons for this, we can mention rising inflation and interest rates. In line with rising inflation and interest rates, it is thought that the values of cryptocurrencies may have declined along with stocks, as investors want to minimize the risks they take. If we look at 2022, it may have even been observed that the price of Bitcoin fell below $16,000. But this decline did not last long. At the beginning of 2023, the market started to revive again, and people’s confidence in cryptocurrencies started to come back. In any case, people who want to invest in this area should be aware that this market is very volatile and shaky. They do not remain stable like normal currencies and can be subject to constant variability.

If we look at the current value of Bitcoin, we can say that it has started a huge increase after 2022 and is around $41,000. Although in 2021 it still hasn’t come close to the highest rise it has ever seen, we can say that it is on the rise. There are many reasons for the market’s turbulence, not the least of which is that cryptocurrencies are struggling to find buyers. If this continues, a market collapse will be inevitable. In the absence of buyers, it may be possible to see the effects of this all over the world. The turbulent economy in the U.S. and the U.K. and the change in interest rates have created uncertainty, which is a very risky situation for this market. The cost of living has become more expensive due to this interest rate hike, which can be seen all over the world, and this has led to a further decrease in the amount of money that buyers can spend on cryptocurrencies or bitcoins. This, of course, makes the market more stagnant. On the Asian side, China is planning to ban cryptocurrencies, and the sum of all these reasons is making the Bitcoin market, or the cryptocurrency market in general, more turbulent.

What about 2024?

Everyone who invests knows that this market is turbulent and that sometimes it brings huge gains and sometimes it goes down, so there is actually not much reason not to invest in Bitcoin in 2024. At the same time, one of the reasons why people are approaching this situation more optimistically is that a situation called “halving” will take place in April of the current year. This is a situation that develops every 4 years for the market, and as you can understand from the name, it is a situation that can be described as halving Bitcoin emissions. This halving of Bitcoin emissions is done in line with payments to people who mine Bitcoin on the network. If we look at the past, after the previous “halving,”  the Bitcoin price increased significantly, which showed that investors made the right decision. There is absolutely no guarantee that this will happen again, because there are many factors that have changed since then, but based on past statistics, there is no reason why it shouldn’t. One of the things that shows that investing in Bitcoin is not unreasonable and can even be lucrative are the Bitcoin mutual funds that have been approved by the SEC.

This means that the investment giants in the market will be able to offer Bitcoin investments to their millions of customers. But how exactly will this work? Firms will have to buy a lot of Bitcoin to support these funds, and these purchases will stimulate the market and increase the value of this cryptocurrency as the demand for Bitcoin increases. But one of the first things to keep in mind before investing in Bitcoin is that this market has been and will continue to be very turbulent. We can clearly see this turbulence in the past, and it’s not unreasonable to think that it will be the same in the future. But thanks to changing factors, Bitcoin can always be used as a potential investment.

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