4 Reasons Why you should Invest in Bitcoin in 2020?

When we are talking about cryptocurrencies, the first question that comes into our mind is Bitcoin and its price. The second question is always whether I should invest in Bitcoin or when should I invest in Bitcoin?

My recommendation to you is whenever you have some money to spare you should invest that in Bitcoin.

No one is asking you to invest a lump sum amount into Bitcoin. A small amount of $100 or less every month can help you achieve financial freedom.

In this article, you will find the answers to your questions related to investing in Bitcoin.

Why I should invest in Bitcoin?

Why you should Invest in Bitcoin 2

Bitcoin is not a Ponzi scheme (Scammers have made it) if you are using the right channel to invest in it and not falling for those quick rich schemes that use its name.

As of today, when will Bitcoin again reaches $17k or surpass it is a big question. There have been a lot of predictions and speculations on the price and no one has been able to confirm a date or a year when history will change?

Fact:

In 2017 on 13th December when Bitcoin reached the price of $17500 it’s Market dominance at that time was 62%. Today while writing this article I checked again its dominance in the cryptocurrency market and found it to be 66%.

I dug a little bit further and found that it has been hovering around 55% to 69% this month. Which is a good sign.

Bitcoin History:

 

Bitcoin came into existence in 2009 after the great market crash of 2008. It was created to help everyone achieve financial freedom and remove an individual’s dependence on Fiat currency. Sadly after 10 years, we are still dependent on Fiat for our day to day needs.

If you are not aware of the inventor’s name then you have to research more. For you only, Bitcoin was invented by Satoshi Nakamoto. A pseudo name of course, to date no one knows whether he is a man or a woman or a group.

It is the first digital currency in the world that uses the concept of P2P (peer-to-peer). Which in simple words means.

A single user can have the authority to control and power the currency without the interference of a central authority like a government or financial institution.

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Fact:

In February 2010  the official Bitcoin stock exchange was launched. On December 16th, 2010, the first Bitcoin block was mined. On June the 2nd of 2011, the price of 1 Bitcoin was $10 on MtGox exchange (now closed).

Historical Price analysis:

Why you should Invest in Bitcoin 1

In a span of a decade, the price of Bitcoin is in four figures. Which investment can give you such a good return?

If you had invested in Bitcoin on the 12th of April 2013 with a small amount of $100, you would have gained an ROI of 17434.370% on 13th December 2017 when Bitcoin reached its first all-time high.

The price of Bitcoin has never shown any depreciation even though there have been ups and downs in the price. 

Fact:

As per the Coinmarketcap, the total ROI till today for Bitcoin is 5,160.15%.

Let’s check the price of Bitcoin for the last six years from December the 13th 2013 till 2019. We will check whether the price has been increasing steadily or there has been a depreciation in the price.

Date Price
13-Dec-2013 $892.58
13-Dec-2014 $347.28
13-Dec-2015 $433.76
13-Dec-2016 $780.56
13-Dec-2017 $16408.20
13-Dec-2018 $3313.68
13-Dec-2019 $7269.68

In the above table, it is clearly visible that the price of Bitcoin has been going up steadily giving investors stable and high returns.

Bitcoin Halving:

Why you should Invest in Bitcoin

Bitcoin halving in simple terms means, reducing the miner’s fee into half. Currently for every Block that is mined the miners get paid 16.5 BTC which in the future will get reduced to 8.25 BTC.

This happens for every 210,000 Block or roughly every four years. Satoshi Nakamoto implemented this algorithm to control inflation, wherein the demand for Bitcoin remains high but supply remains low.

Which is the exact opposite of what, a Fiat currency does! The below table will give you a clear understanding of Bitcoin Halving.

Year Block Number Reward per Block
2009 1 50 BTC
2012 210,001 25 BTC
2016 420,001 12.5 BTC
2020 630,001 6.25 BTC
2024 740,001 3.125 BTC

The next halving as per the above table is scheduled to happen in 2020, the approximate date is 14th May. You can keep a track of the date by visiting this website – Bitcoin Block Reward Halving Countdown.

Fact:

The total number of Bitcoin that can be mined is 21 million. Already 18 million Bitcoin have been mined. Out of the already mined Bitcoin more than 1/3 has been lost.

Bitcoin price before Halving:

Why you should Invest in Bitcoin trade

The above chart image is from GandoTrader.

Bitcoin’s first parabolic run happened in 2011 but then the price quickly crashed till the end of the year. Before halving in 2011 the price of Bitcoin was approximately $2.50 and then at the parabolic peak, it went up to $30.

But, before the halving Bitcoin price went down drastically and then started creeping up in 2012 till it reached the price of $12.35. This is exactly what is happening now in 2019. 

At the moment Bitcoin price is following the same pattern. If history repeats itself then the price of Bitcoin should go up next year before the month of May. 

If you want to earn a good profit within a period of six months, then you should start accumulating more Bitcoin. This is the right time to enter the market and take a position.

Recommended Exchanges: 

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Conclusion:

Although I do not believe in short term gain, I always recommend and follow the principle of HOLDING and not exiting the market when the price goes down.

If everything goes as the way it happened in the past, Bitcoin should reach an all-time high in the year 2021. My recommendation to you is to accumulate Bitcoin as much as you can.

Do not invest everything in one go. It is always recommended to take a position at a different price level. I always buy Bitcoin every month with whatever amount I have left that I can spare.

In the end, I would like to Thank you for reading this article about why you should invest in Bitcoin in 2020? We publish fresh content every Tuesday, Stay updated by following us on our Social media handles.

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About The Author: Shounak

A content writer, content creator & community manager by profession. Shounak has been a Blockchain Enthusiast and Bitcoin Investor since 2015. He founded this blog to help newbie understand and realize the power of decentralized currency also known as cryptocurrency.