After 2022 Price Collapse, Should You Invest in Bitcoin?
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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.
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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.
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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.
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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.
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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.
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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.
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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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