The Highs And Lows Of Bitcoin And What Does It Mean For New Investors?
Investors in cryptocurrencies and Bitcoin, in particular, have had one heck of a ride this past year. From the price going literally through the roof just a few months ago to its recent fall. Ouch. The cryptocurrency niche is yet another reminder that a lot can happen in just a few hours.
Bitcoin’s Recent Fall
A lot has certainly changed for Bitcoin and other cryptocurrency options, and it all began when Elon Musk, CEO of SpaceX and Tesla, took a sudden U-turn on his previous thoughts on Bitcoin. While Elon seemed to be positive about crypto’s outlook, all that seems to have changed due to growing concerns of energy usage.
The electric car manufacturer made the shocking announcement recently that it would no longer be accepting Bitcoin or any cryptocurrency for that matter as a payment option. This sent many crypto investors into panic mode, which is understandable since Elon had previously invested a lot of money into the cryptocurrency ($1.5 billion, to be precise). So, what gives? And why the sudden change?
Crypto and the Climate
For many, the impact that cryptocurrency has had on the environment is no secret. There have been studies that suggest that the large consumption of electricity that goes into mining cryptocurrencies is taking its toll on the environment, and apparently, the green credentials of the electric car manufacturer. After considering the real cost of crypto mining, the founder of Tesla released a tweet stating that Tesla would be suspending Bitcoin sales due to the same concerns. But, what does that mean for new investors?
What about the Investors?
The short answer is; not very much. Sure the value of Bitcoin has dropped a few thousand since Musk tweeted about not accepting Bitcoin anymore, but cryptocurrency still remains to be a great idea on many levels and has a promising future. So, what’s the problem? Cryptocurrencies are mined using the concept known as proof of work. This basically involves having to solve computationally difficult puzzles, which requires a lot of computing power and ends up consuming large amounts of electricity. In fact, according to some estimates, the annual electricity consumption of Bitcoin mining is close to that of Poland.
The Best Time to Invest in Bitcoin is Now
The good news, however, is that while Tesla will no longer use Bitcoin for transactions, the company hasn’t sold off its large cache of Bitcoin at the moment and plans to use it once the mining processes turn to more sustainable sources of energy. So, for new Bitcoin investors, the good news is that its value is not going to plummet due to many of the large investors abandoning their Bitcoin loot, because frankly, nobody has. According to the experts, for now, Bitcoin is just going through one of its stages of extreme volatility which should subside soon, bringing back Bitcoin’s value up again to its previous position around the 40k mark.
Find the Right Crypto Trading Platform for You
For many forward-thinking investors, the recent dip in Bitcoin’s value is seen as a golden opportunity to strike when the iron’s hot and invest in Bitcoin before the prices begin their upward trajectory. If you are a new investor in Bitcoin or other cryptocurrencies, then now’s the time to take action. By using reliable and reputable crypto trading platforms such as bitiq, you can find all the information you need. Take advantage of in-depth data and many other resources that the platform has to offer to help you grow your crypto investments.
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