Bitcoin had a challenging year in 2022, which caused some potential investors to wonder if continuing to rely on cryptocurrency is a good idea. However, predictions surrounding how Bitcoin is likely to change in 2023 indicate that it still has potential as a store value for the right investors.
The experimental nature of cryptocurrency means that crypto markets are generally highly volatile. Creating a new type of currency that is largely based on speculation from the beginning naturally means that there is a higher level of risk associated with this type of investment than there is with more established currencies, and it is not uncommon for a particular event to have a significant negative impact on the value of Bitcoin and other cryptocurrencies. However, this downturn is often temporary, and many crypto investors have found that they can regain their investments within a relatively short time after these events.
The nature of Bitcoin makes it relatively unpredictable, but it can still have a feasible future. Here is an overview of why it is common for the value of Bitcoin to fluctuate and what these fluctuations may mean in 2023.
Bitcoin and other types of cryptocurrency may be unpredictable by nature, but this does not mean that they cannot be used as viable investment opportunities. This type of currency may be prone to experiencing significant ups and downs at a higher rate than currencies that are more established and better understood by the general public, but the fact that there is significantly less regulation surrounding this type of investment means that Bitcoin and other cryptocurrencies also have a higher level of potential to recover from low points within a shorter amount of time. Bitcoin's most significant investors are often the type of people that are more likely to take risks and are more comfortable with the complicated nature of cryptocurrency, which means that they are likely to continue to stick with this investment option through future ups and downs.
Predictions about ways that Bitcoin is likely to change in the coming months show that a bright future is still possible for cryptocurrency. Here are three reasons why continuing to use Bitcoin is likely a good idea!
Bitcoin and other forms of cryptocurrency have been significantly less heavily regulated than other investment options since their inception. Although this concept has had both benefits and drawbacks for experienced investors, the higher level of regulation that is predicted to come in 2023 has the potential to help stabilize the constant fluctuation of the value of Bitcoin and make choosing this investment method a somewhat less risky option for potential investors that are less comfortable with the quickly changing nature of today's cryptocurrency.
Although Bitcoin has already gained a reputation as an investment option that is available to people around the world, it has not yet reached the maximum level of worldwide use that we could begin to see in the near future. Investing with currencies that are only used in a limited number of countries certainly has drawbacks, but the idea of a virtual currency that can be used by anyone without the hassle of exchanging currency from country to country is quickly gaining traction. Bitcoin is predicted to continue to grow on a global scale in 2023, and this high level of potential use means that this type of investment still has the potential to recover from the challenges it has faced in 2022.
It's no secret that keeping too much power consolidated within one company or other entity can be devastating if something goes wrong, and Bitcoin is predicted to branch out and spread various elements of its exchange, brokerage, custody, and other areas among a larger number of key players in 2023. This means that a higher level of protection is coming from the potential dangers that can be associated with having smaller entities in charge of more than they should be, which means that the entire process has the potential to become safer for a wider range of users in the near future.
At Brown Investors, we are here to help you navigate the challenges and benefits of Bitcoin and other cryptocurrencies to make the best decisions for you. Take the leap into wealth building today by investing in our Cryptocurrency 101 course. Contact us today to start the process of investing with confidence!