"It's impossible, BTC won't be that weak. Or…?”
It is well known that the mother of all cryptocurrencies Bitcoin has existed since 2009, but recently there has been discussion about the decline in the value of the digital asset and its potential and some claim that the asset is actually 'dead'.
Therefore, here is a little explanation to answer the question that arose.
Is BTC actually dead?
Although BTC plunged drastically in November 2021, the digital asset is still not dead as it has always recovered after several price drops.
There is no denying that BTC's performance over the past few years has been beaten by Ethereum (ETH), but investors should not declare BTC dead as it is still defined as a valuable asset.
Should invest in BTC?
The decision to invest in BTC should be based on individual risks, such as the companies Tesla and Square who spent billions of dollars to buy the digital asset despite knowing that its price movement is highly volatile.
However, investing in BTC or other cryptocurrencies has the potential to generate huge profits as interest rates on traditional investments such as savings accounts and bonds are currently very low.
Even so, an individual should do more detailed research and research or consult with a financial advisor before making any investment decision.
Reasons for BTC price drop
In addition to concerns about the need for a large amount of computing power and energy to mine BTC, the collapse of the FTX firm was one of the reasons that caused the entire crypto market including BTC to experience a significant drop.
Among other factors that resulted in the price of BTC plunging is due to the aggressive actions imposed by regulators against digital assets.
Will BTC ever fully recover?
It is very difficult to predict its future, but many experts believe that the price of BTC will rise slowly as institutional investors including giant companies are increasingly showing interest in the digital asset.
Additionally, the improving performance of the stock market over the past few years may lead many people to invest in BTC as a way to diversify their portfolios.
The future of BTC and the crypto industry
The future of the crypto industry as a whole has the potential to grow further in the future despite short-term volatility and uncertainty, so investors should always keep an eye on the market for the latest developments.
