Is this a Good Time to Buy Bitcoin?

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November 22, 2019 by
Is this a Good Time to Buy Bitcoin?

The Bitcoin marketplace is a classic example of what volatility represents. One moment the Bitcoin price is headed upwards, the next moment it comes crashing. This kind of behaviour leaves so much uncertainty among participants as they keep wondering, “Is this a good time to buy bitcoin?”

Few months to one of the major events in the life of Bitcoin, and investors are keeping close attention on the pioneer cryptocurrency. Judging from a long term perspective, there is almost a unison of opinions that Bitcoin is bound to increase in value. For speculators and those who desire to make the most of the short term market movements, things might seem a little bit different. 

How Does Bitcoin Halving Affect Price?

The Bitcoin price surge that led to its all time high price towards the end of 2017 was preceded by the Bitcoin halving event. It is a network behaviour in the Bitcoin protocol that reduces the amount of Bitcoin earned by miners by 50%. This event occurs after every four years, and the next Bitcoin halving is expected to happen around May 2020.

Apart from the Bitcoin halving of 2016 which heralded the eventual price surge, the halving before that one had a similar effect on the value of Bitcoin. That was in the year 2012, and this behavioral pattern has informed what the Bitcoin community is expecting ahead of the next Bitcoin halving.

Among other factors, the fundamental economic implication of supply and demand is the most natural factor considered by many. Bitcoin halving reduces the amount of new Bitcoins that is being introduced into the network per time. On the flip side, there is an increasing awareness and adoption of the cryptocurrency. This combination implies that there is bound to be increased scarcity as a result of increasing demand when supply is diminishing. The final equation of this whole situation is that the price of Bitcoin is expected to rise.

Why Is Bitcoin Price Falling?

With this in mind, a lot of users may still be wondering why the price of Bitcoin keeps dropping, with the charts looking like prices are expected to drop even lower. This behaviour is not new to those who have been in the system long enough. There is a school of thought that  “whales” push prices low enough so that they can mop up at a cheaper rate ahead of the expected Bitcoin price surge.

There is also the group that believes that the current market trend is motivated by “Fear Uncertainty and Doubt” (FUD). This happens when users are affected by the noise all over the marketplace, making them sell-off their cryptocurrencies in panic. Whatever the actual reason for the depleting price, this kind of situation has happened before, as mentioned above.

It is these kinds of scenario that we have described above that leads to Bitcoin users, and those who are interested in joining the Bitcoin network to ask the question, “Is this a good time to buy Bitcoin?” The answer to this question is found from what you deduce from the facts already detailed in this post.

Can the Government Kill Bitcoin?

Take for instance, one of the reasons why there is FUD towards Bitcoin is the fear of governments clamping down on the cryptocurrency either outrightly or technically. The most recent insinuation is that some major government could introduce a rival digital currency that will distract the community and kill the network effect of Bitcoin. 

In a recent video, one of the most respected names in the Bitcoin industry, Andreas Antonopulous responded to this insinuation by debunking this possibility. Antonopulous summarized his opinion by stating clearly that Bitcoin has grown beyond the level of strangulation by the government or any other institution. 

Bitcoin has achieved a level of computing that no single nation state can overthrow it through computation alone. The effort to do so would require a massive covert operation of chip fabrication. Then the coordinated assault that will give them dominance over the next block for ten minutes. Until we kick those b*****ds off the network, rework the protocol around them, they would be revealed. They would have lost a billion dollars doing this, and all they’ve got to do is one double-spend.

To Buy or Not to Buy Bitcoin?

Perhaps, the question of buying Bitcoin and the situation that has lead to the rhetorical question, “Is this a good time to buy Bitcoin?” can eventually be resolved. From the angle of the proponents of the cryptocurrency, there is not a better time to buy Bitcoin than when the price has dipped. This is the situation that the market finds itself for now. 

Better still, rather than the old cumbersome methods of buying Bitcoin that involves long processes of signing up and repeated KYC procedures, instant Bitcoin purchases are now available. In four simple steps, you can buy Bitcoin and other cryptocurrencies and have them deposited in your wallet in a matter of seconds. You can achieve this by following this link.

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