The crypto giant Bitcoin has been stuck in a bear market since the beginning of 2022, dragging the prices of all altcoins down with it. For some investors, the strong downtrend – true to the slogan “buy the dip” – offers the opportunity to invest cheaply in BTC and potentially make huge profits in the long term as soon as the trend should reverse.
But is this the right approach? Or does buying current Bitcoin involve too high a risk of loss? Today we not only ask questions about BTC, but also present an interesting coin that may have a better chance of rapid price growth than the largest of the cryptocurrencies.
Does it make sense to buy Bitcoins now?
If you are thinking about whether you should buy Bitcoin 2022 or not, it is advisable to consider the pro and counter arguments for or against a current investment. Let’s look at the two views separately.
Pro arguments for buying Bitcoin
On the one hand, it could be a one-time chance to buy bitcoins for less than $25,000 right now. After all, the price has not been this low since the beginning of 2021, which is why it was not possible to invest in BTC so cheaply for a long time.
If you take a look at the year chart of Bitcoin, one thing in particular catches the trained eye. Although the price has been decreasing significantly since October 2021, from July 2022 we can see a small short-term price rally. After all, the value has risen since the beginning of July from USD 19,200 to today’s price of USD 23,850 (as of August 17, 2022), which corresponds to an increase of almost 25% in six weeks.
Even if the trend reversal is not complete, it could be interpreted as a first step in the right direction. Because both experts and speculative price forecasts indicate that the value of Bitcoin could increase enormously in the coming years.
A look at the BTC forecast from PricePrediction.net shows that BTC could crack USD 100,000 as early as 2026 and could average up to USD 130,000 (+445%). The analysts from Kursprognose.com are a little less optimistic, but they also expect the price to rise to USD 52,800 (+120%) by the beginning of 2025.
— Crypto Compass (@CryptoKompass) August 19, 2022
The stars of the crypto scene are similarly convinced of Bitcoin’s lucrative future. For example, Bobby Lee, co-founder of Chinese exchange BTCC, thinks that bitcoin could be worth millions in less than 20 years. John Pfeffer, a partner at Pfeffer Capital, predicts a BTC price of $700,000 by 2030.
The fact that all the experts are bullish about the long-term future of Bitcoin is mainly due to the market presence of the token. As the first, largest and most famous crypto currency, BTC still has a market dominance of 40% despite increased competition.
Counter-arguments against buying Bitcoin
On the other hand, one must state clearly that the current economic situation is anything but good to get Bitcoin back on track. Inflation, war in Eastern Europe, rising interest rates and impending resource shortages don’t seem to be abating in any way, but they are just starting to take off.
This could not end the crypto bear market either, so further price losses of bitcoin are expected. Oleg Giberstein, co-founder of the UK exchange Coinrule, told Forbes that he believes cryptocurrency prices will go down for up to two more years.
Of the #Bitcoin it has no value in itself. However, as it continues to be used on a large scale to pay for criminal transactions, it will continue to be justified and likely to increase. If this is banned, Bitcoin and all other cryptos will be lost with it.
— Emanuel Boeminghaus (@E_Boeminghaus) August 19, 2022
In addition to the difficult global economic situation, some aspects of the Bitcoin infrastructure appear outdated and overhauled. It is not only the energy-intensive proof-of-work consensus mechanism, but also the further development of blockchain technology and the possibilities to create DApps through Smart Contracts that make projects like Ethereum or Avalanche seem much more advanced than Bitcoin.
Finally, one should also keep in mind the significant risk associated with accepting the principle of buying on the basis. The signs of the times right now – at least in the coming months and years – are that the bear market will continue, which could result in significant price losses. Especially long-term investors who want to buy Bitcoin now and hold it for years should imagine hope and opportunities for huge price gains.
Conclusion: Invest in Bitcoin now or not?
After considering the pros and cons arguments, the question of whether to buy Bitcoin now or not can only be answered by the individual risk assessment. Not only the high volatility of the crypto market, but also due to the current economic crisis, the “buy the dip” strategy is a hot topic.
It might be worth waiting a little longer to see how current crises (inflation, the Ukraine war, gas shortages) will develop in the near future. In fact, it seems unlikely that Bitcoin will continue to lose value in the coming months.
If you want to take a little less risk, you can wait until the overall market has recovered significantly. Bitcoin may be worth a little more than it is today, but you avoid the risk of entering a persistent market and having to accept losses right from the start of the investment.
Alternative to Bitcoin: Why experts are squinting right now at TamaDoge
Despite the current bear market, a brand new cryptocurrency could see huge gains in a few weeks: TamaDoge (TAMA). The memecoin is currently still in the presale, which has already raised USD 4.7 million.
The reason for the hype of TamaDoge is the concrete use that only a few dog cryptocurrencies have – after all, the meme tokens are mostly created just for fun background.
TamaDoge is a play-to-earn game where players can breed, care for and breed virtual dogs as NFTs – like Axie Infinity. The native TAMA tokens are required for this, after which you can discover the Tamaverse with your virtual four-legged friend and compete against other dogs in the battle.
If you are particularly good at the tournaments and get on the TamaDoge leaderboard, you will be rewarded in the form of crypto coins. You can also earn money by breeding and trading TamaDoge NFTs.
The entire TamaDoge ecosystem is based on Ethereum, but due to the current presale, TAMA coins cannot be sold yet. Since TamaDoge aims for the first central stock exchange listings as early as the beginning of next year, the attention of the already hyped P2E dog game could increase in the coming weeks and the price go through the roof.