Bitcoin’s past is rich enough and tumultuous enough that it would make for a great novel or a compelling motion picture. The ups and downs of the digital coins certainly make for great conversation, but they don’t really matter too much to the people who are considering investing in the technology. For those people, all that really matters is what lies ahead. Perhaps more than any other asset class, the future for Bitcoin looks a bit murky. You can be optimistic and imagine it being the most important financial innovation to ever be enacted. Or you can be pessimistic and think that it will never last another ten years without being squashed by the centralized bodies whose priorities run opposite to it.
In the middle, the future’s truth probably lies, and that’s what investors need to figure out in order to time their investments just right. It may be too daunting a task for you to try and play the Bitcoin market on your own because of its uncertainty, but you can still gain valuable exposure to it by utilizing a trading program, like Bitcoin Code, backed by artificial intelligence. As for the future of Bitcoin, here are some factors to consider before you make your planned investment.
1.A Victim of Its Own Success
Bitcoin was such a game-changer once it came to light that it was inevitable that others would follow in its wake. As a result, the cryptocurrency market is now flooded with coins, all promising investors that it will be able to go even further than Bitcoin in completing the intersection of finance technology. That kind of pitch will likely woo many investors who won’t want to buy into Bitcoin’s already high price. As a result, some long-term correction is possible.
2. The Regulatory Dance
Bitcoin continues to win a few battles in its never-ending battle with institutions afraid of its decentralized nature, but it also loses a few as well. It seems like each piece of news about Bitcoin causes a ripple much larger than a bit of information about some company would have on this stock. That’s because Bitcoin is that most volatile of financial instruments. Until it stops being the lead dog for all things cryptocurrency, those kinds of wild swings seem inevitable.
3. The Stabilization Point
At some point, it is likely that all of the pros and cons of Bitcoin will have played themselves out and it will reach some sort of point from which the deviations will cease to be so dramatic. The key for investors will be deciding where exactly that level will be. If you believe that it is somewhat higher than the level where it currently sits, you should consider it as an excellent long-term investment even though it still might be subject to the occasional rise and fall.
No one has a crystal ball that can quite predict where Bitcoin is headed next week, let alone years in the future. But the investors who can see the distance with some degree of clarity will know whether Bitcoin is worth the trouble.