How To Tell The Bitcoin Hype From The Bitcoin Reality

In the past two decades, the world has witnessed innovative changes and one such is the advent of cryptocurrency, which has now turned out to be a global phenomenon.

However, even though the world is quickly adapting to the new trend and investment scope of cryptocurrency which began its legacy with Bitcoin, the to-date most popular crypto token, people are still intimidated by cryptocurrency investment. 

Since Bitcoin (BTCUSD) is a digital currency as opposed to a fiat currency, it has no physical reality. While the government and banks manage and regulate fiat currency, the Bitcoin network is decentralised and runs on blockchain technology.

However, over the years, cryptocurrency has gained value not only in the global economic framework but has potentially exhibited the scope of becoming the future of the currency system.

Bitcoin – Hype or Future 

In a recent World Economic Forum survey, the opinions of cryptocurrency experts to blockchain analysts were revealed and the study found experts believing that blockchain technology, which supports Bitcoin will be mainstream future by 2025.

This has triggered the question of whether Bitcoin is just hype or could be the future of the currency system. 

How To Tell The Bitcoin Hype From The Bitcoin Reality

The blockchain director and co-founder fintech company in London, 11:FS, Simon Taylor, finds Bitcoin to have extreme potential and hold to an essential economic position and business market within the next two decades.

In 2022 approximately there are 1 billion cryptocurrency investors across the globe. While globally almost 45% to 50% of these investors own Bitcoin, only in the US 46 million An estimated portion of Bitcoin is owned by Americans.

Cryptocurrency and financial specialists predict that by 2025, the worldwide blockchain network would have a market value of $39.17 billion US dollars.

The head of blockchain and crypto research at Uphold, Martin Hiesboeck analyses the market still to exhibit growth even after the sudden dip in the cryptocurrency market after Bitcoin price dropped from its last year all-time high.

Investment in Bitcoin from high-profile wallets, mostly institutional investors are still investing in Bitcoin, even though most investments are being held off. 

Multiple macroeconomic factors have influenced the volatility of the crypto market as well as Bitcoin like— governmental regulations, enhanced interest rates, surging inflation, etc.

However, to justify that Bitcoin is not just hype, the role of retailers and small and mid-cap businesses in accepting digital payments has played a vital role. 

The era is marking the pathway for a new economic system of the future with Starbucks to Lamborghinis, Microsoft to Etsy accepting cryptocurrency payments. 

Within the next two decades, approximately 75% of retailers plan to upgrade their service payment systems to accept cryptocurrency, Bitcoins as well as stable coins as revealed by a survey conducted by Deloitte titled “Merchants getting ready for crypto.”

Besides, after November 2021, when Bitcoin stroke ATH $69,000 even though Bitcoin price dropped, the market showed growth.

Bitcoin has not experienced a significant decline in the recent months and has remained at approximately $20,000. Additionally, economists expect Bitcoin’s price to increase by 2025 and reach new heights. 

Hype into the Bitcoin Reality 

Experts do admit that the cryptocurrency market including the Bitcoin market value is subject to extreme volatility.

Well, despite the volatile nature, which is also common for stock markets, it is indeed a new avenue of investment offering lucrative scopes.

But at the same time, there are ways how smart investors to avoid the fat of hype and heck on to the reality of cryptocurrency investment. 

  • Plan for long-term investment.
  • If you are planning for a day trade, hedging, etc. make sure you have done substantial market research. 
  • Don’t get swayed away by the volatility of the cryptocurrency market, make sure to stand by your investment plan. 
  • Experts also recommend investing not more than 5% of your total portfolio. 

With the advent of any new avenue or system, there is always hype around it.

But Bitcoin has stood the test of time and with a limited supply, secure blockchain technology of operation, and constant market demand, even Bitcoin Loophole finds interested investors taking a sneak peek into cryptocurrency investment scopes. 

Know more about Bitcoin trading and how you can start your trading journey here.

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