3 Reasons Why Now Is the Best Time to Buy Bitcoin
Why is now the best time to buy Bitcoin? Given the current global pandemic, you may be on the fence about whether now is a good opportunity to look into the world of Bitcoin and cryptocurrency, in general. Can Bitcoin truly be a hedge asset in 2020 as traditional financial institutions struggle to remain steady through this crisis? We’ll be reviewing the three main reasons why now is the best time to buy Bitcoin, so you can make the best decisions with your assets through these uncertain times.
1. Rise Of Bitcoin’s Accessibility
Critics of Bitcoin have frequently stated that Bitcoin and cryptocurrencies, in general, are simply too complex and too non-traditional to be seen (and used) as truly universal forms of currency in the ways that cryptocurrency advocates have previously predicted. However, the popularity of cryptocurrencies has risen sharply over the past decade, with Bitcoin leading discussions of the viability of digital currencies for the future of global finance.
Currently, there are many moves being taken that are meant to increase Bitcoin’s daily usage for a much wider audience of people. March’s reversal of India’s two-year ban on Bitcoin resulted in an 800% increase in trading volume within just two days, and slowing adoption numbers within the United States are projected to rise with credit card company Visa accepting the Bitcoin rewards app Fold into Visa’s Fintech Fast Track Program. With this program, Fold and Visa will be launching a collaborative debit card that can give rewards on cash purchases with Bitcoin, as opposed to traditional credit card rewards points.
The increase in numbers of cryptocurrency access points, such as cryptocurrency ATMs, has also proven that Bitcoin and other digital currencies are designed with the future of finance in mind — the lack of a centralized banking location does not stop your ability to access your assets no matter where in the world you find yourself. Increases in Bitcoin’s general accessibility in key global markets are reviving interests in Bitcoin as a truly global currency, rather than an asset solely meant for cryptocurrency and financial experts.
2. Bitcoin Performs Through Market Instabilities
The coronavirus situation has greatly impacted the state of the global economy, and for the first time since its public release, Bitcoin’s value has fluctuated more or less in direct correlation with the stock market. For some people, this has put a dent in Bitcoin’s narrative of being a “safe haven” asset during tough financial times. However, criticisms of such fluctuations in Bitcoin’s price tend to ignore Bitcoin’s more long-term growth metrics — Bitcoin’s supposedly volatile nature has not prevented it from being reliable in rebounding from dips in its value over the past decade.
The relative correlation between the stock market and Bitcoin over the past few weeks shouldn’t be too large of a concern — as a decentralized currency, Bitcoin does not necessarily travel on its own path without regard for changes and trends in traditional markets. However, the fluxes and flows associated with the stock market and the financial measures being taken by central governments to thwart unwanted consequences of the Covid-19 pandemic should be considered as a major potential threat to the stability of traditional financial assets.
As a deflationary asset, Bitcoin has a unique advantage in hedging against inflationary market trends, such as the Federal Reserve’s recent injections of cash into the US economy. Bitcoin was created out of a necessity for alternative investment options after the financial crisis of the late aughts. Built-in scarcity and stability measures, such as Bitcoin halving, are meant to protect the value of Bitcoin in the long-term. As people navigate their financial futures through another major global moment, Bitcoin presents a unique opportunity for your assets to be protected.
Ultimately, Bitcoin’s ability to regain high dollar value even after extreme drops makes now the best time to buy Bitcoin — as with traditional stocks, buying in while the dollar value is relatively low can greatly increase your financial gains over time.
3. Current Surges In Bitcoin Adoption
Rising rates of Bitcoin adoption demonstrate positive trends towards the cryptocurrency for 2020. After Bitcoin’s most recent halving event, its trading volumes rose to their highest levels since last July, with well-known former hedge fund manager Mike Novogratz expressing great interest and hope in Bitcoin’s 2020 performance.
Bitcoin’s most recent halving event also greatly contributed to the most recent spikes in Bitcoin adoption numbers. Halvings reduce the number of available blocks by 50%; in other words, the amount of the increase in supply of each block is halved. This incentivizes speculators to adopt long positions in the weeks, months or years before the halving event. While halving is meant primarily to retain Bitcoin’s scarcity as it approaches its 21 million cap, the two previous halvings have also demonstrated that this event encourages Bitcoin buying from first-time buyers, who see the halving as a fresh opportunity to enter into the world of Bitcoin. This third halving event had reportedly more mild impacts on Bitcoin’s initial price than the previous two, but adoption numbers surged and led to a crash of Coinbase, one of the world’s largest crypto exchange platforms.
With the current global crisis continuing to negatively impact the state of the US economy and job market, these positive surges in Bitcoin’s trading volume may initially come as a surprise. However, Bitcoin has presented a fresh opportunity for entry through its most recent halving event, and growing trust in Bitcoin coming from hedge fund managers and other financial experts demonstrates the staying power that Bitcoin can have through moments of crisis.
Now Is The Best Time to Buy Bitcoin Through Pelicoin’s ATM Services
Pelicoin offers the Gulf South’s largest and safest cryptocurrency ATM network for you to easily manage your Bitcoin, Litecoin, and Ethereum assets . Visit our blog for more helpful cryptocurrency news and guidance, or talk to us today by emailing support@pelicoin.com or calling 855-PELICOIN. We look forward to helping you gain control of your cryptocurrency assets!