Will It Ever Be Too Late To Invest In Cryptocurrencies?

Bitcoin is the most popular cryptocurrency in the world, as well as one of the most sought-after assets for investors from all over the world looking to grow their portfolios.

As the blueprint for all other digital coins, it has earned a reputation for reliability and relatively stable prices in a marketplace that is well-known for its volatility. Investors have continued to look for where to buy Bitcoin despite the changes and challenges in price points.

The economic situation hasn’t been the best, and all investment ventures deal with uncertainty. On August 17th, crypto prices experienced a sudden drop, reversing all the gains that had been piling up over the past couple of months. This showed that the bear market managed to overpower bullish tendencies.

Too late to buy?

Bitcoin is an asset with a limited supply. Only 21 million coins will ever be mined, a limit which will be reached around 2140. After that time, no new Bitcoin will be mined, and only the tokens that are already in the system will be used. This characteristic gives Bitcoin its scarcity, which in turn contributes to its higher value among investors compared to the altcoins. It’s still difficult to tell exactly how the marketplace will develop going forward since BTC is famously changeable.

But while it’s unclear how Bitcoin will be over the next decade, many investors ask themselves a crucial question: Will it ever be too late to invest in cryptocurrencies? This concern is attributed to Bitcoin in particular since a limited number of coins will ever be released. At the moment, the consensus is that it will never be too late to buy Bitcoin.

Therefore, if you’ve been worried that it might be too late now to add your name to the group of investors putting capital towards BTC, you’ll be glad to hear that is not the case. If you’re set on an investment strategy that needs to unfold over a more extended period, you still have plenty of time to let it move forward. However, there might be a time when it will be too late to exit fiat and bonds.

Overvaluation

Many investors currently believe that everything on the market is overvalued, meaning that it’s difficult to know where you should focus your investments. This isn’t just a problem for Bitcoin but for the traditional financial and investment sectors as well. While in the beginning, cryptocurrencies were mainly on a separate path from classical markets, and their reverberations only reached them when there was something genuinely concerning with the potential to affect the global financial scene, it seems now that Bitcoin is more vulnerable to these changes.

Part of that is to blame on the fact that digital assets have been entering mainstream markets at an increasing pace, which is good for their visibility among investors but also has downsides manifesting as increasing vulnerability for the marketplace. However, digital finance is still a safe haven for those looking to escape inflation and steep costs. Many crypto holders have entered the market after they began losing their faith in the purchasing power of fiat currencies and started to look for alternatives.

August hacks

Dips in value aren’t the only thing the crypto environment had to deal with in August. Crypto hacks saw investors record a whopping $16 million during the month. Combined with the fraud incidents, investors lost $23.4 million worth of crypto. While it is still a considerable decrease from the $320.5 million that was lost in July, it is still a sizable sum. In total, the losses recorded so far in 2023 amount to $1,245,020,621 across 211 different incidents.

Rug pulls are also a popular attack method, and all exploits have occurred against DeFi protocols. Back in March, a decentralized finance protocol lost approximately $195 million in a flash loan attack. However, after developers threatened to take legal action, over 90% of the assets were returned over the course of one month.

Crypto card

A decentralized lending platform with its headquarters in Bulgaria has launched a debit and credit card that is powered by cryptocurrencies. It is exclusively for citizens located in the European Economic Area and is set to allow users to spend US dollar, British pound or euro-based stablecoins through debit transactions. Over 100 million merchants worldwide support this type of payment, and roughly 9% in annual interest is expected to be paid to stored balances.

Bitcoin will be used as collateral as part of the transactions, which will automatically convert crypto to fiat money at terminals. There will be no inactivity or monthly fees, as well as no foreign exchange fees, as long as the amount doesn’t exceed 20,000 euros per month. There’s also a 10,000 euro limit per monthly ATM withdrawals. Both virtual and physical cards will be issued, and there’s also the perk of both ensuring connectivity to Google and Apple Pay.

The company operates using Know Your Customer standards, as well as measures aimed at eliminating money laundering. It also works alongside US-based blockchain analysis companies such as Chainalysis, which has worked with security services and law enforcement agencies in the United States, such as the Drug Enforcement Administration and the Federal Bureau of Investigation.

Bear market

The struggle between the bearish and bullish market tendencies has been underway for quite some time now, and while the bulls appeared to be gaining ground, it seems now that the bears are set to remain victorious for at least a while from now on. Some have even discussed that the current market might be the longest in Bitcoin history since its launch in 2009.

However, other investors disagree, pointing out that BTC went through more difficult times in the past. Its price stayed below previous highs for no less than thirty-seven months between November 2013 and January 2017. That’s roughly 1,125 days. It took over three years for the price to recover. Therefore, the current bear market, of approximately 500 days so far, appears slight by comparison. Yet, many wonder when they can expect the situation to change.

Since the ecosystem continues to change, investors must remain alert to protect their holdings and see their portfolios thrive.

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