After a Chinese state media outlet claimed that Bitcoin is a ‘safe-haven asset’ as well as the recent bullish run on Bitcoin’s price index charts, could Bitcoin be showing signs of becoming a safe investment opportunity?
There is no denying that Bitcoin has had its fair share of highs as well as lows, and it is easy to see how some have denounced BTC claiming that it is anything but a stable investment opportunity. On the contrary, with recent hikes in value in the face of a bear market, it is hard to ignore the fact that BTC is in actual fact at the beginning of its fight back to prove its critics wrong.
Over recent months there has been no shortage of financial experts claiming the current situation happening in the cryosphere is not too dissimilar from that of the dot-com era. These are experts putting their reputations on the line supporting Bitcoin’s future, and if BTCs latest performance is anything to go by, it does appear that the comparison is not as far fetched as some may have initially thought.
If BTC’s current upward trend continues, recent negative press claiming that Bitcoin is dead buried will slowly but surely be proven wrong, and those that published their demining evidence that BTC is not to be taken seriously may be looking for another line of work. While, on the other hand, those who have strongly stood by the world’s first ever virtual currency will be lauded as industry experts.
The big question is how has Bitcoin swung from being a great investment to a bad investment, and now showing signs of becoming a “safe haven asset” in space of just two years? The answers lay somewhere between Bitcoin’s high and low swings in market value in a very short space of time as well as the inevitable media attention it has captured on its journey up to now.
As usual, we can look towards the media and the way they cover stories in real time. Bitcoin’s ups and downs were rarely if ever, a major media selling point in the past.
In fact, prior to Q4 of 2017 Bitcoin rarely came into the public eye. It was only at the end of 2017 when BTC caught the media’s attention at a time BTC rose dramatically reaching close to US$20,000 per coin. Suddenly, every newspaper and media outlet had a major talking point with multiple topics to cover in which they could produce numerous stories.
It is fair to say the media found their calling card. The ‘good times’ and the ‘bad times’ of BTC have been a godsend for the media who, at times when there were no other stories out there, media outlets could always produce a piece on Bitcoin or cryptocurrencies to fill in space.
With all the media attention focusing on a cryptocurrency that had suddenly risen in value in such a short space of time, it was inevitable a crash in value would also attract an equal amount of publicity.
However, this time around the media portrayed the marvel Bitcoin was turning out to be. and the amazing investment opportunity many had missed out on, as public enemy number one. An abundance of stories were released covering BTC’s walk of shame referring to its dramatic downturn in value in which it eventually dropped from close to US$20,000 to below US$5,000.
On top of this, there was plenty of negative word of mouth from those that had jumped on the bandwagon when BTC was rising in late 2017 and early 2018 and would eventually see the value of their BTC investment wiped out by between 25 and as much as 75 percent. Many outlets wrote cryptocurrencies off altogether claiming they could never work and were very quick to slam BTC and anyone foolish enough to invest in such an unstable market.
On top of this, there were a number of ICOs that had raised funds and turned out to be Ponzi schemes or just pure frauds able to operate in a similar way to IPOs, but in an unregulated marketplace. With Bitcoin operating in the same crypto space, of course, it would also be mistakenly labeled as a fraud.
And so, taking all this into account, Bitcoin was labeled as a ‘bad investment’. Luckily over the last few months, the media has rarely paid much attention to BTC because of the bear market, but the negativity is still there as the last media frenzy on the subject of cryptocurrencies was mostly negative.
Bitcoin and the subject of cryptocurrencies may have seen a reduction in media coverage, but over the last few months, there has been plenty of activity. Governments have been implementing new regulatory boards to keep track of crypto investors and new custodial services have been opening across the globe. All this has contributed towards a safer more reliable crypto investment market.
Of course, it is not regulations and custodial services that have been the main talking point in recent months. It is the fact that BTC’s value has been bouncing back. The popular argument supporting cryptocurrencies has always been that all markets have their ups and downs, and BTC is no exception to the rule.
Take for example the dotcom crash. Internet companies were severely overvalued and eventually, the market fell to its knees. Billions of US$ have wiped off stock exchanges globally. That did not mean that internet companies or the World Wide Web were destined for failure. It was just the natural cycle of a new market trying to find its place and where it fits into the world economy.
Now we have Amazon, eBay, Facebook, Booking.com, Alibaba, and more blue-chip dotcom companies out there. There are also millions of smaller dotcom businesses all successfully making money directly as a result of the invention of the internet and the World Wide Web. Take mBit casino for instance. We are a perfect example of a successful online business running a cryptocurrency casino on the internet where you can play online slots and casino table games.
Bitcoin is very similar to the dotcom period. The ICOs that were weak have folded in the face of a bear market. As with the dot-com arena, only the strong will survive. Therefore, the cryptocurrencies and ICOs that remain and those that are emerging on the cryptocurrency price indexes today can be considered as relatively safe investments.
In short, only the strong survive in the face of a bear market and BTC has done much more than survived. It is showing strong signs of recovery and many are saying that the cryptocurrency market is still a bear market. Right now, the value sits at over US$10,000 and is expected to level out at around US$13,000. This is a stark contrast in valuation compared to December 2018 when BTC was valued at US$3,339.
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