In February 2011, Bitcoin would've cost you $1. Now after 10 years Bitcoin price i.e BTC is $35,811.60. Having spent $100 to buy Bitcoins back then, you would have $35,81,160 today.
This could be considered one of the best investments of the 21st century, unattainable for the stock market and other assets. After such a shocking takeoff, most people consider the lost profit and regret that "the train left". But professional participants in the financial markets may think differently.
For example, Ari Paul, CIO and co-founder of the BlockTower Capital investment company, believes that BTC can potentially generate more than 10 times profit over the next two years. He suggests that the current bull market may last until the end of 2022, and Bitcoin by that time would be able to strengthen in the area between $100K and $400K
However after the pandemic situation struck the market faced slow economical drop which was followed by Elon Musk's tweet in which he mentioned about why tesla wont be accepting bitcoin as a payment now onwards, which resulted in major price drop for bitcoin.
Prior to this tweet, a crypto coin "DOGECOIN" was trending in market which was just a meme coin but touched 200% profit when Elon Musk tweeted about it but right after that when people were expecting Elon's comment on the coin, (which he didn't) on a popular show "Saturday Night Live" brought the coin value to back where it started.
Many people got their profit out of this small bubble before its burst but many people faced loss as they were holding the coin as they believed its just a dip and coin value will rise again.
So should we really invest in bitcoin in 2021? Or what about the coin we are holding on to, should we sell them off and cut the loss?
Well, before we buy or sell any Crypto currency we should see the market cap value of that currency. Market cap basically means that currency cannot be unlimited so there has to be some specific amount in the market. For example Dogecoin didn't had any market capital so investing in such a coin which has unlimited production means at a point of time the coin wont hold much value as it is unlimited unlike other crypto's. So before investing check the current market cap of that crypto currency, check the high's and low's for previous years, check the interest rate of that coin, check the acceptancy of it and when you are sure only then you should invest.
Even after investing don't expect to be a millionaire in a couple of months it takes time to gain value. Best way is to invest a limited amount and then forget about it for a couple of years so that you wont be bothered when there are highs and lows and i can guarantee that in a couple of years that investment wont be loss.
While investing don't risk all it all at once, Investment should be done slowly and patiently. Invest only the amount you can afford to lose because incase if you face a loss you can bear it because you were cautious but if you risk all your assets and you face a loss, such situation would be difficult to cope with.
