2019 Finance: Where is BitCoin Now and Is It Worth Investing In?

I’ve always been fascinated with less conventional ways to spend/make money and bitcoin is one of them. I’ve watched bitcoin for years now, and even wrote an article almost 6 years ago on it. Bitcoin, a digital currency, has been in the headlines a lot in recent times and it is a financial opportunity that has certainly attracted the interest of many potential investors. It got to the point where I had multiple people that I had never talked finance with me started bringing it up asking me about it.

One of the primary reasons why Bitcoin is on the radar of investors around the globe is the fact that the currency reached some stellar valuations (nearly $20,000 for 1 bitcoin) and then dropped substantially after what was considered to be an inevitable correction after the initial euphoria (currently trading at $3,800ish at the time of this post).

Where we are now with Bitcoin is that some believe the price correction had the effect of bringing the digital currency back to what could be considered a realistic valuation. 

If that is the case, is there now an argument for young professional to take another look at Bitcoin?

Bitcoin is settling down

When you are looking to browse Bitcoin opportunities it is important to consider whether cryptocurrencies like Bitcoin are established enough to become a reliable investment opportunity.

It could be argued that Bitcoin is the biggest name when it comes to digital currencies and while some other cryptocurrencies have had some concerning reliability and security issues, Bitcoin has largely avoided the same problems and has gone on to prove over time that it is reliable and that it offers scalability.

It is this ability to scale that justifies its time in the spotlight as a potential play.

Transaction fees are lower now

In the past, one of the biggest complaints with Bitcoin was that the transaction fees were so high. One of the positive aspects of reliability and scalability with Bitcoin is the fact that we are now seeing much lower transaction fees than were previously possible.

Scaling upgrades and transaction batching are two good reasons why fees have been lowered and alongside greater capacity, this means that transaction fees can be lower than before and remain so for the foreseeable future.

A new technology that makes Bitcoin attractive

Digital currencies are evolving as technology changes and improvements are made, which is precisely what has happened to influence the attractiveness of Bitcoin.

The lightning network is well worth mentioning in the overall Bitcoin story and is a technology that has been developed to enable anyone around the globe to be able to send Bitcoins instantaneously for a modest fee.

One of the fundamental positives about the Lightning network technology is that it allows you to create payment channels without any third party taken custody of your coins.

If the use of lightning technology continues to grow this could potentially help Bitcoin to establish itself in the mainstream online commerce arena. In my opinion one of the biggest hinderances to Bitcoin right now is that it’s not easy traded in a commerce setting.

The future of payments

Going mainstream with a digital currency like Bitcoin could potentially be a real game changer and although this headline cryptocurrencyis not an exclusive solution and has competition if this payment technology is going to become a normal way of paying for everything, Bitcoin could be well placed to claim a prime market position.

If you are considering investing in Bitcoins based on this potential alone it is wise to consider how this currency can outperform its rivals.

An obvious advantage is that Bitcoin is the most recognizable of all the cryptocurrencies and it enjoys a much level of visibility in the public eye than others. 

Having that profile edge over other competing digital currencies means that Bitcoin does at least have the potential to become a default payment method if and when cryptocurrencies become mainstream.

Follow the money

A major clue toward the credibility of an investment opportunity is whether institutional money is being put down.

What is happening at the moment is we are entering a period where Bitcoin is gaining general acceptance amongst other established financial products. As a result of increased regulation and the introduction of specific Bitcoin-based securities, this is helping to attract the attention of institutional money.

What tends to happen is that general investors will often follow the lead of institutional money and that means if the big players start to put some of their cash into Bitcoin that could be perceived as confirmation of its status as a suitable investment vehicle.

Tracker funds and investment trusts are now available to be traded on the Nasdaq and this can only help to legitimize Bitcoin as a potential investment opportunity.

Part of your diversification plans

The mindset of investors in the past has always been to seek out gold as a safe haven when the global economy is showing signs of taking a turn for the worse.

Although the theory has yet to be tested, Bitcoin could potentially profit from a collapse in the mainstream economy as it is viewed as a reasonably non-correlative asset.

We all know what happened in 2008 and if and when the next big collapse arrives, it might just pay to have Bitcoin as part of your diversification plans as a way of helping to minimize any downfall in the value of your overall portfolio.

It is also worth considering that weak national currencies have already fueled demand for Bitcoin so it seems reasonable to make an assumption that a wider global downturn could strengthen the profile and price of the digital currency.

Bear or bull territory?

The fascinating thing about Bitcoin is that it is an investment that seems to be able to create strong opinions amongst investors, with some believing that it has a tremendous future and others fearing that it is a bubble waiting to happen.

The question you have to consider is not only whether the arguments put forward have convinced you to invest in Bitcoins, but whether the bears will win the day and suppress the Bitcoin price for a while to come or recent corrections represent a buying opportunity to make some profits in 2019.

Weigh up the pros and cons so that you can make your own mind up and act accordingly, bearing in mind that in the past we have seen wild fluctuations in price from $100 to $1,200, so there does seem to be potential if you get the timing right.

Buying, selling or trading Bitcoin (like other currencies) comes with risk. This article represents an opinion on Bitcoin and ultimately the decision is yours for how to invest!

Disclosure: Some links are affiliate links that may earn me a commission. I am recommending these companies based on my research and/or experience and truly think you would benefit from them, regardless of any commission I may earn.