The whole year 2020 was really uncertain and haphazard for those investors who are fond of Bitcoin. The coronavirus has impacted the market of Bitcoin in a massive way. But those who had faith in the potential of bitcoin or Cryptocurrency had gotten more than enough returns as a reward for their trust. Those who have lost their faith during that time or want to start a new venture with Bitcoin have one question in their minds. “Can I invest in Bitcoin now?”
Can I invest in Bitcoin now?
During the time of the Coronavirus pandemic, Bitcoin was struggling for its existence along with other Cryptocurrencies. With the massive decreasing rate in the value price of Bitcoin, there were some talks circulating in the Crypto market that this is the time when Bitcoin will lose its existence.
But Bitcoin had made a comeback with a boom. From the month of September, the price value of bitcoin had started to increase. You can check the detailed chart by visiting just click here.
- By the middle of December 2020, the price value of Bitcoin crosses the range of $20,000.
- After that, by 25th December, the price value crossed the $25,000 range. The first day of 2021 had brought surprises for Bitcoin lovers.
- Apart from being the first day of a new 2021, the first day of January has given the Crypto lovers another reason to celebrate, as bitcoin crossed $30,000.
- It takes only four and two days respectively to overcome the price value of $35,000 and $40,000.
The Rise Of Bitcoin
| Bitcoin Price Value (USD) | Date |
| More than 20,000 (21352.13) | December 15, 2020 |
| More than 25,000 (26445.70) | December 25, 2020 |
| More than 30,000 (32203.64) | January 01, 2021 |
| More than 35,000 (36849.86) | January 05, 2021 |
| More than 40,000 (40636.24) | January 07, 2021 |
It is true that Bitcoin is performing really well in the Crypto market. But we can not forget about its volatile nature. We never know when the increasing rate will convert into decreasing rate. So, the rising value price can not be the only reason for you to put your money in Bitcoin. If we take aside the increasing price value of Bitcoin, there are other reasons that will surely convince you to invest in Bitcoin.
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The Uninvited Risk Factors That You Need To Consider
Multiple methods are there depending on which you can determine the risk factors in your investment decisions.
1. Credit Risk
These types of risks affect the projects in Cryptocurrencies—the probability of the parties who have failed to fulfill their obligations in the best possible manner. Theft and fraud are the two main credit risks that you must consider while you are dealing in Cryptocurrencies.
2. Legal Risk
Legal risks refer to the negative event that occurs due to the failure of the compliance for maintaining with respect to the regulatory rules. In certain countries, it may lead to the ban of Cryptocurrencies.
3. Liquidity Risk
The conversion of Cryptocurrency to fiat currency is affected due to specific changes in the market scenario. You cannot use it in everyday spending due to the changes in particular rules.
4. Market Risk
The prices of the coin may move up and down due to certain market volatility rate is the main concept behind the market risk of the Cryptocurrency.
5. Operational Risk
During the time of Bitcoin or Cryptocurrency operation, if any fraudulent activity occurs, it is considered as operational risk. In some cases, the person also gets some difficulty in sending and receiving bitcoin, even in their wallets.
Final Verdict
The risk factor in Bitcoin is always high; you cannot bypass it. You need to develop the perfect investment plan that can help you to get more returns from your investments. Before you make your investments in Bitcoins, ensure that you have made the correct market research.