Has the bitcoin craze come to an end or is it just really getting started? There are over 6,000 cryptocurrencies (blockchain) currently available, which is dividing those that trade in Bitcoin. Do the 6,000 options mean that productivity in the blockchain is up or does it mean that the market is oversaturated with mining, thereby making sure the market is headed for a dive?
A Rough End to 2021
There is speculation that about 90% of bitcoin has already been mined, which would mean productivity in this sector is not likely to flourish. 2021 has been a tough year for bitcoin with tons of up and down fluctuations (mostly downward), a lot of negative press, and people losing interest in bitcoin.
However, those that are deep within the bitcoin trade are predicting that something different is going to happen. Those that are deeply embedded in the trade are predicting that there will be a rebound in productivity. As a matter of fact, some experts are saying that there has been a large exaggeration when it comes to productivity and bitcoin. Some experts predict that up to 20% of the blockchain has not been mined at all.
There was some speculation during the third quarter of 2021 that bitcoin would completely tank in the fourth quarter, but it did not. Other markets are enjoying robust growth along with online retail sales with growth at about 7.7% (2018 alone). Other markets are feeling the pinch of a struggling economy, including the bitcoin market.
In the Future
Whether you are talking to someone that believes the bitcoin productivity has come to a standstill because 90% of the potential has already been mined or you have a conversation with someone that thinks there is more left to mine, the results will be the same. Everyone agrees that there is more to mine and that the totality of the mining productivity will not end until 2041.
What does that mean to the average person considering investing in bitcoin? It means that you do still have time. If you are thinking about making the millions that early investors were able to secure, you should shift your expectations.
Like every investment coming late to the game means not seeing the same type of return. If you have the ability to park some money for a while and make a big ROI, consider bitcoin and a mix of other investments like data security. Every modern enterprise needs data transmission and storage security, any company that provides it is set to make a fortune.
Should You Or Should You Not Put Some Money In Bitcoin?
When crypto first made the scene there were wild predictions about it replacing the global currency. There was a lot of hope that crypto would be widely accepted. Today, the reality is a handful of luxury brands, tech brands, and a very few major retailers will accept crypto as cash.
If you can park the money in crypto and not have to have access to it then you can trade it like you would any stock. Wait for the value to rise, and then sell. The old “buy low, sell high” very much applies to all types of crypto.
Most major trading experts think it is fine to diversify your portfolio with the hopes that your money will see tons of productivity and multiply, but they all also have a warning. Bitcoin and crypto, in general, is a risky endeavor not for the weak of heart. If you want something safe, this may not be the right place for you to put all of your eggs, but if you do not mind a little risk, then adding some shares would be okay. Just like any investment, no your risks and only risk what you can truly afford to lose.
Is the bitcoin business over? No, it is not. It will continue the up and down ride and self-correct as it goes.