The cryptocurrency world is in turmoil and Bitcoin has reached a milestone that many expected: $100,000 per unit. This raises a crucial question for investors and curious people: is it time to buy or is it too late?
Bitcoin and Market Cycles
Bitcoin has proven to be a unique asset class, riding out market cycles with impressive consistency. These cycles, which typically span a four-year period (marked by halvings), have historically led to massive price increases followed by corrections. However, the long-term trend is clear: Bitcoin’s price continues to rise.
Why? Because Bitcoin is based on programmed scarcity. Only 21 million BTC will ever exist, and every four years the reward for mining it is reduced, decreasing the emission of new coins. This creates a deflationary effect that, combined with increasing adoption and demand, drives up its value.
Store of Value in a World of Devaluation
Bitcoin is establishing itself as digital gold: a store of value in times of economic uncertainty. While the dollar and other fiat currencies lose purchasing power due to inflation and excessive money printing, Bitcoin offers a safe haven.
The US Federal Reserve (FED) has made it clear that it will continue to print dollars to stabilise the economy in times of crisis. This, while necessary in the short term, devalues the currency in the long term. Every dollar that is printed decreases the value of dollars in circulation, eroding the purchasing power of savings.
In contrast, Bitcoin cannot be arbitrarily manipulated or devalued. Its decentralized and limited nature makes it a hedge against inflation and a tool for preserving wealth in a world where government monetary policies tend to weaken traditional currencies.
Long-Term Outlook
The current price of $100,000 may seem high, but if we look at Bitcoin’s historical trajectory, this figure could just be the beginning. With institutional adoption on the rise, advancements in blockchain technology, and global interest in an alternative financial system, Bitcoin has everything to continue rising in the long term.
Large companies and investment funds are already accumulating BTC as part of their strategy to diversify their assets and protect themselves against inflation. Even governments are beginning to explore the adoption of Bitcoin as legal tender or as part of their reserves.
Is It Time to Buy?
If we look at history, those who bought Bitcoin at its previous all-time highs and held it for the long term have always come out ahead. The current price reflects a point in the adoption curve that still has plenty of growth potential.
It's not just about speculation; it's about participating in an alternative, resilient and transparent financial system. Buying now is not just a bet on price, but on the idea of a future where your money doesn't lose value over time.
Conclusion
Bitcoin at $100,000 is a reminder of its ability to redefine the global financial landscape. While every investment has risks, Bitcoin’s fundamentals, from its scarcity to its growing adoption, point to a promising future.
Will you stand by and watch or be part of this financial revolution?
