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The COVD-19 pandemic has really disrupted many things around the world in 2020. Countless businesses have been destabilized, people have lost jobs, more bankruptcies have been filed, and many things are in disarray.
Now, there is quite an uncertainty in almost everything. That has caused many people to take a break from putting money into anything for the time being. Even though that might not necessarily be a good idea, the concern might be healthy.
But what about cryptocurrency? Is it smart to invest in cryptocurrency amidst the coronavirus? The answer is not quite simple, but the situation here is more or less the same as it was before COVID-19.
Before getting into investing in bitcoin, it may be useful to know what it is.
What Is Bitcoin?
It is a digital currency or cryptocurrency that was created after the market crash of ’09. Created by an anonymous individual or group, the currency offers lower transaction fees than regular money. It is not operated by any centralized authorities like the government-issued currencies around the world.
This currency is not available as physical cash. It just exists as balances kept on a public ledger that everyone can see.
How Has Bitcoin Been Over The Years?
To say that Bitcoin prices have been volatile over the years would be an understatement. The cryptocurrency has seen many massive ups and downs, like nothing else in the world.
In March of 2020, the value was around $4,900. But if you look a month after that, you can see that the value was somewhere north of $8,500 in April. Then, the price was around $9,700 two months later. These are huge variations, and you can clearly see that anyone who invested in March nearly doubled their money in just three months.
However, where there are ups, there are definitely downs as well. A common example would be the difference in Bitcoin’s price between the end of 2016 and 2017. In late 2016, the value was just under a grand, but it was somewhere around $20,000 at the start of December 2017. It then dropped $7,500 by the end of the month, bringing the value to $12,500.
Is It Risky To Invest In Bitcoin Nowadays?
Investing in Bitcoins is risky, and there is a chance for profit and loss, just like with other investments.
Even with a few ups and downs, Bitcoin rates have been higher than $9,000 since June. Not to mention, the value of one Bitcoin went higher than $12,000 at the end of October. The last time the rates went up this much was in late 2017.
In mid-November of 2020, the rates are higher than $16,000. Has COVID-19 affected Bitcoin? Only positively from the looks of it. If you want to purchase Bitcoin, you can find out how to buy Bitcoin with PayPal and get on the train immediately.
The cryptocurrency could become mainstream, remain niche, completely disappear, or anything in between. Just like with other investments, due diligence is necessary on Bitcoin as well.
Any good investor will also tell you not to put all your eggs in one basket and hope for the best. Diversifying your portfolio is the best thing you can do as an investor.
