• Bitcoin Breaks The $10,000 Benchmark
• Reiterating its stand as a bankable global store of value
• When Is The Right Time To Invest In Cryptocurrency?
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The global leader in the crypto sphere, Bitcoin has begun to raise the hopes and confidence of its holders in the past few weeks.
Yesterday February 9th, the top cryptocurrency surpassed the $10,000 benchmark for the first time this year and for the past 4 months. The crypto giant began witnessing a progressive rise from 26 January 2020 at $8,355.
According to a post by Coindesk, “With the surge above $10,000, the cryptocurrency’s year-to-date gains have risen to 41 percent and its market capitalization has increased to $183 billion”.
Altcoins too aren’t left out of this surge. A number of top altcoins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and BitcoinCash (BCH) have also recorded gains in tens of dollars.
Unlike in June 2019 when Bitcoin peaked at $13,000, it dominated the entire market during the bull run. And the altcoins didn’t experience as much increase in value as Bitcoin. This time, the altcoin’s gains have brought Bitcoin’s overall dominance to about 64% from its 82% dominance in the last bull rage.
The hashtag Bitcoin began to trend on Twitter NG and the most prevalent tweet was ‘Is This A Good Time To Buy Bitcoin?’
Although I am not a professional financial advisor and I advise everyone to seek professional guidance on digital currency investing, one thing I know about investing generally is that, the percentage change on a whole commodity is always far larger than the percentage gain on a fraction of the same commodity. Simple maths!
So while those who intend to invest in the crypto market now by buying and holding for value gain may not have the funds to purchase a whole Bitcoin.
There are a number of other stable altcoins that you can take advantage of assuming the bull run doesn’t come to a halt.
Here’s a layman’s calculation of the illustration above:
Assume a 10% increase in 1 Ethereum at N82,000. That would reflect an N8,200 gain. Instantly!
Now assume the same 10% increase on N82,000 worth of Bitcoin currently at about N3,600,000 (You’ll get roughly 0.00022777 in Bitcoin. A 10% increase would be 0.000022777. So your new added value would be 0.000250547 – less than an N500 gain. Although also instantly, it’s rather disappointing.
(NB. Referenced currency is Naira).
The first best time to have invested in Cryptocurrency was in 2015 and 2016 before the market hit its all-time high. And the next best time is now! That the financial institutions have a more solid market capitalization.
Disclaimer: Seek professional advice before investing in the Digital market.