Bitcoin Is Still King
The grandfather of all cryptocurrencies has proven naysayers wrong over the course of the last several years despite some slips here and there. Can Bitcoin dominance last? Can any other digital currency overtake the monolith?
Bitcoin has proven time-and-time again that is has staying power; 1 Bitcoin is currently worth $18,870.83.
There’s some speculation that the US market is overvalued, and due to the number of COVID-19 cases and deaths swelling with vaccines still limited — a stock market correction could affect Bitcoin in the short term due to new restrictions and other factors.
Market analysts expect a resistance area, a phenomenon where selling at a certain price level prevents a stock from exceeding that price, of $19,000 or $19,500. If that breaks down e.g. the price moves downward indicated by a horizontally line moving the share value down before returning to a higher price — Bitcoin traders could see a support range from $14,000 to $18,000.
But fret not: Bitcoin is still resilient as ever even after plummeting to $4,000 in 2018 after being at $19,000 just the year prior. (It gained 300% after market corrections.)
And even though Bitcoin has a fixed number of coins that will ever be produced — 21 million Bitcoins to be exact with only a couple of million left due to the stipulations in its source code (limitations that make it a finite resource)— it all boils down to the basic principle of supply and demand.
The last Bitcoin isn’t expected to be mined until 2140; the jury is still out on what will happen after that occurs. But the prevailing and most likely scenario is changes will be made to Bitcoin’s network to account for this. Miners may have to adjust and make their money from transaction fees.
Whatever the case is: the “digital gold” still remains king.
Can Any Other Digital Fiat Come Close To The Bitcoin Behemoth?
It’s much too late to invest in Bitcoin and turn a substantial profit.
Everyone who missed the Bitcoin train have tried rallying behind other coins and tokens such as Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Bitcoin Cash (BCH).
ETH is currently leading the pack, but cryptocurrencies, alt-coins especially, still remain the most volatile asset one can purchase.
Don’t Buy Into The ETH Hype
ETH reached its peak price in 2018 and never quite recovered to those levels and now currently sits at around $575.107.
There’s nothing in the chart indicating it can make a rally towards its former glory despite digital currencies moving higher and lower as Bitcoin does due to the fact that alt-coins are priced against it.
Don’t Look At Any Coin Or Token As Investment
While it’s tempting to buy into alt-coins, Bitcoin’s success might never be replicated; your chances of picking the right coins to invest in are extremely low — unless you spread your investment thin.
The volatility in the digital coin market can sink your investment as quickly as it rises.
Bitcoin took the necessary steps to become digital gold and it’s not a project like other cryptocurrencies.
Bitcoin still reigns supreme.
**Disclaimer: This article is not intended to be financial advice and it should not be misinterpreted as such. Always speak with a professional regarding your personal financial decisions.**