Is 2022 a Perfect Year to Invest in Bitcoin?

2021 was undoubtedly a good year for Bitcoin. This virtual currency went up almost 70% since the beginning of the year. And this increased the entire cryptocurrency market’s value to $2 trillion. At the same time, the first crypto company went public with Wall Street banks increasing their participation in the crypto industry. Also, the U.S approved the first exchange-traded fund (ETF) with a Bitcoin link.

However, lately, price fluctuations and regulatory scrutiny have affected this cryptocurrency’s prospects. Some experts have even warned that the Bitcoin market might head downwards. Nevertheless, some argue that 2022 is the best year to invest in this virtual currency. Many choose to invest in Bitcoin with ARQU and similar trading platforms already, so here’s why investors should consider adding Bitcoin to their investment portfolios.

Bitcoin Still Leads in the Crypto Space

Most people want to invest in assets with the highest potential to bring better returns. While the world has many cryptocurrencies, some are better investments than others. Bitcoin has consistently outperformed other major market cap digital currencies. Although there’s no guarantee that this virtual currency will succeed, its performance has been better since its inception. And its unique strengths make it more robust than other digital assets out there.

Bitcoin is Getting Stronger & More Efficient

Developers are introducing new digital currencies almost daily. However, Bitcoin is also getting stronger, despite being a major player for over a decade. Today, people use Bitcoin to solve some of the problems with conventional money.

Some people have criticised Bitcoin for being harmful to the environment for consuming a lot of energy through the mining process. Also, some people argue that Bitcoin’s transaction speed is slower than that of traditional payment methods. Thus, its scaling is complicated.

However, the Bitcoin network is working on improving transaction speed. Also, miners are exploring more energy-efficient ways to mine Bitcoin. And this could endear Bitcoin to more investors, increasing potential returns on Bitcoin investments.

Bitcoin is Gaining More Real-World Utility

Initially, speculation was the Bitcoin’s values basis. Essentially, Bitcoin didn’t have real-world uses, and people bought it on platforms like because they believed in its potential. Such crypto exchanges allow people to learn about, purchase and sell Bitcoin with fiat money.

However, things are changing with Bitcoin gaining more real-world utility. For instance, Bitcoin is becoming a widely accepted payment method. Recently, this cryptocurrency hit the deadlines when El Salvador made it a legal tender and some governments invested their surplus into it.

What’s more, this cryptocurrency is gaining traction in non-fungible tokens (NFTs) and decentralized finance (DeFi). Decentralized finance is exploding with almost $94 billion in De-Fi projects.

Potential Regulations

Some people don’t invest in or use Bitcoin because of its under-regulation. However, regulators have already flexed muscles on virtual currencies. For instance, China banned crypto-related activities. The U.S authorities also cracked down on some aspects of the crypto market. In 2022, analysts expect that crypto regulation will be a crucial issue for this sector.

More people will want to understand and probably invest in Bitcoin with the increasing regulation. This will likely increase its value or appeal because it will make Bitcoin more of a mainstream asset.

Final Thoughts

Bitcoin and other virtual assets are becoming increasingly popular. However, this doesn’t make them a perfect investment for everybody. Bitcoin remains a risky virtual asset due to its volatility. While its adoption and uses are increasing, most people don’t see the real-world usefulness of this virtual currency. Bitcoin and other virtual currencies remain highly speculative.

What’s more, it’s uncertain how government regulations will affect Bitcoin. Thus, some sceptics see Bitcoin as a bubble that could burst any time and fall into a heavily bearish downtrend. Generally, nobody knows how the crypto market will turn out. Nevertheless, some experts believe that Bitcoin, its underlying technology, and other digital currencies could change the world making investing in Bitcoin in 2022 very appealing.

Disclosure: This article is for entertainment and educational purposes only. I am not a financial advisor and you should always do your own research and consult a qualified financial advisor before making big decisions with your money as capital may be at risk.


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