Busting Crypto Myths: “It’s Too Late to Invest in Bitcoin”

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The bitcoin market has evolved considerably since its launch in 2009.

What was once a small group of tech enthusiasts has grown into a global community of investors. Some 40 million crypto wallet addresses now hold bitcoins in varying amounts; a percentage of which is owned by large institutional investors who were once too wary to dip their feet into the industry.

For example, BlackRock, the world’s largest asset manager, is now a bitcoin holder. However, in 2017, company CEO Larry Fink called the leading cryptocurrency a money laundering index.

US investment bank JPMorgan Chase has also changed its tone on bitcoin. Four years after CEO Jamie Dimon called bitcoin a fraud, the company now offers its wealth management clients access to several regulated bitcoin products.

This increase in adoption has certainly contributed to Bitcoin’s price rise over the years and is one of the main reasons why so many people feel like they’ve already missed the mark when it comes to to invest in it.

But don’t be afraid. There are several reasons to suggest that bitcoin is still in its early stages of development.

Bitcoin is still relatively new

While it may seem like everyone but you has invested in bitcoin, there are far fewer investors in the industry than you might think.

In the United States, a 2022 survey by the Pew Research Center found that only 16% of American adults have engaged in buying and trading cryptocurrencies like bitcoin. According to the results, the figure effectively remained the same between 2021 and 2022, showing that adoption was likely at a standstill.

In another study, Triple A, a Singapore-based blockchain company, estimated that, on average, crypto ownership worldwide was only around 4.2%. This includes all cryptocurrencies, not exclusively bitcoin.

Considering these estimated numbers, it shows that the bitcoin market is still in an early stage of growth, as only a relatively small percentage of people around the world actually invest in it.

halves

With bitcoin prices currently in the tens of thousands, it is understandable that some believe the markets have already peaked and there are few opportunities left for building wealth.

While it is impossible to predict future asset market movements, certain pre-programmed events in the bitcoin protocol have historically been correlated with rising prices.

Known as bitcoin halvings or halvenings, these events are automatically triggered approximately every four years, or after 210,000 new blocks have been added to the bitcoin blockchain since the previous halving.

During these events, the amount of newly minted bitcoin given to successful miners, known as the block reward, is halved. Over time, the block reward is halved and halved again, until the number of bitcoins entering circulation eventually reaches the predetermined maximum supply of 21 million protocols.

Once this supply cap is reached, no more new bitcoins will enter circulation. Halvings have the effect of systematically reducing the amount of new bitcoins entering the market.

So far, three halvings have taken place since the launch of the bitcoin protocol: one in 2012, another in 2016 and the last one in 2020. These all had a positive impact on the price of bitcoins, which has usually been recorded one year after the event. spent.

It is estimated that the last remaining bitcoin block reward will be earned in the year 2140. This means that between now and 2140 there will be at least twenty-nine more halving events each with an equal potential of drive up prices. This is definitely something potential bitcoin buyers need to think about.

Regulations and safety

For those new to the industry, there is a far wider range of regulated and secure platforms for buying bitcoin than there was even in recent years.

Buying bitcoins used to be a precarious affair for investors. Many centralized exchanges operated without a license and could not be held responsible for any losses. In some cases, the founders have even disappeared with user funds.

Today, exchanges like Kraken represent the modern era of highly secure, trusted, and regulated crypto platforms. Users benefit from consumer protections, frictionless bitcoin investments, and the ability to purchase crypto using a range of supported payment options.

For institutions, endorsing regulated bitcoin products like exchange-traded funds (ETFs) provides access to the industry without having to hold the bitcoin itself. And for those who do, there are now highly secure third-party custody providers that can protect their crypto funds.

In summary, while it can often feel like it’s too late to invest, there’s never been a better time to invest in the bitcoin market. Overall adoption is still relatively low compared to other well-established assets, the technology itself is still in development, and the market is only maturing.

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