Is Bitcoin Worth a HODL?

HOLD is the term that the cryptocurrency community uses to refer to holding than selling any token. Everyone is familiar that bitcoin entered the vanilla marketplace in 2017 as in the winter session of 2017, bitcoin skyrocketed.

 However, only three months after bitcoin’s bump, in 2018, bitcoin was an ultimate gloom. Stakeholders and investors faced a loss of almost 50% of their investment. Since then, bitcoin has been very popular for its intense price swings, and volatility is one of the critical characters of bitcoin.

Before entering the cryptocurrency marketplace, you should be ready to not worry about these price fluctuations. To get more information about cryptocurrency trading, check Website. Keeping it short, if you want to invest your money in bitcoin, you should always focus on the bigger picture. Frequent fluctuations have always been part of bitcoin, and regardless of these price swings, the virtual coin has given positive returns. Let’s find out whether you should HODL bitcoin or not.

Bear run of Bitcoin!

Numerous factors are assessing and deliberating on the spot market value of bitcoin. Every mainstream economists are addressing the stream of illicit activities associated with bitcoin. Many trustable exchanges have been hacked, and hackers have made a gigantic revenue by accessing the delicate data of these exchanges. Mt. Gox and Coin heck are prominent examples in this case.

 Hackers stole almost 800K bitcoins from the Mt. Gox exchange. Mt. Gox recently again acquired the limelight but still agreed to return 1 50,000 to its customer. The move of Mt. Gox in a single go might decline the value of bitcoin. Governments are also wary of bitcoin, and currently, El Salvador is the mere country that seems to support bitcoin.

Virtual platforms were embracing this virtual currency in the very first place. But now, these companies have joined the bear group of bitcoin as most virtual platforms have refused to promote cryptocurrency exchange. Some of these companies are Google, Facebook and Reddit. The only reason is that some cryptocurrency exchanges offer Ponzi schemes and promise impossible returns.

The bullish case of bitcoin!

The bullish case of bitcoin is that numerous institutions are supporting bitcoin. Bitcoin is now famous as an emerging asset class. Even mainstream investors compare bitcoin with gold and prefer virtual gold over actual gold. One of the prominent reasons behind this is virtual gold or bitcoin is much more mobile than gold.

Moreover, bitcoin offers superior returns than gold. Undeniably both gold and bitcoin have a set of finite supplies, but the finite supply of gold is still not defined. On the other hand, in the case of bitcoin, we all know that there are only 21 million bitcoin units.

One aspect of holding bitcoin for a more extended period is its scarcity. The scarcity of bitcoin means that the supply of bitcoin is continuously decreasing, whereas the demand for bitcoin is increasing by an exceeding extent. Therefore, bitcoin halving, finite supply, and institutional adoption of bitcoin are prominent reasons for bitcoin increasing scarcity.

Bitcoin ETFs that stand for the exchange-traded fund also embrace the liquidity of these virtual tokens. The recent tap root update in the bitcoin network indicates this currency’s bright future. The taproot update will introduce the feature of smart contracts on bitcoin’s blockchain that will make the bitcoin network much more robust. Now bitcoin might be used as a Launchpad and intelligent chain.

 Taproot update will also increase the quality of the multi-sig feature. You might wonder what multi-sig stands for. Multisig is the feature offered by some bitcoin wallets. In the Multisig feature for approving any transaction, we need the authorization of more than one individual. Multisig stands for Multi signatures as the name suggests you need signatures or authorization of all the parties holding that cryptocurrency asset in the bitcoin wallet.

Besides increasing the functionality of Multisig, taproot update will correspondingly increase the security and scalability of the bitcoin network. However, only half of the nodes are currently working on the taproot update, and the rest are still using the old update. Moreover, many bitcoin wallets are not compatible with this update. 

Also See: Is It Possible to Change Cryptocurrency Into Cash? Let’s Have A looks To Transfer Your Cryptocurrency To Your Bank Account.

Noah Murphy

I have a great interest in travel, adventure and politics. I moved to Australia age 25 from England. From a young age I have always viewed the world as an opportunity. My travel and current affairs writing offers me a opportunity, my approach to life is a shared learning journey, were we meet many travelers along their life's journey, what matters to me is capturing the moments. I reflect, grow and share as much as possible on my journey towards self actualization.

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