After 2022 Price Collapse, Should You Invest in Bitcoin?
Since then, the price plummeted almost 50%.
Amid meme-stock mania and a tech-startup-induced frenzy, Bitcoin hit new highs in late 2021, topping out at just over $68,000 per coin.
However, if you zoom out on the historical timeline, many think we are still in the early innings of a technology poised to change the world.
Here are three things to consider if you are thinking about buying Bitcoin in 2022.
Keep an Eye On Institutional Adoption
Over the past few years, Bitcoin has become more entrenched in the economy, a sign of optimism for its future prospects.
Bitcoin has even gained adoption as a legal currency. Last year, El Salvador decided to make Bitcoin legal tender.
Perhaps the most significant nod toward accepting Bitcoin as a legitimate asset class is the approval of the first Bitcoin futures ETF.
Focus on the Long Term
In the short term, volatility reigns. The future of Bitcoin is still murky, and any new information can cause large price swings.
Investors who bought Bitcoin at the top of the previous spike in December 2017 would have seen its value decline by almost 84%.
However, those who held on saw prices more than triple over the next five years.
Understand the Potential Risks
While the potential future of Bitcoin looks bright, there are risks that investors should be aware of before making a purchase.
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