Bitcoin has an amazing year in 2017. The investors at the time saw a 1,350 percent return. The coin reached its all-time high in December that same year. The year after that was completely different from the expectations of investors. BTC saw a 70 percent loss of value the next month and remained low all through the year. Its value has increased since that time but may potential investors wonder if Bitcoin is still profitable in 2019.
Bitcoin is still a profitable venture in 2019. As a matter of fact, research conducted earlier in the year revealed that BTC has been profitable for 3,817 days despite being only 3,869 days old. This implies that it has been profitable for 98.66% of its history.
Will bitcoin remain profitable for the rest of the year?
There are so many reasons to believe that BTC will remain profitable for the rest of the year. Some include:
A rise in Bitcoin adoption globally
Bitcoin value has not been steady for some time now, but global adoption continues to increase. Trading volumes have increased at exchanges. Also, some countries such as Columbia, Chile, Peru, Argentina and Venezuela saw an increase in BTC trading volumes. On the other hand, the Lightning Network, BTC merchant network adoption will increase since it offers faster payment solutions with low fees.
More regulations in place
There have been discussions on a regulatory framework for cryptos in the past. This is a positive sign because it means that financial regulators now equate crypto assets to forex and equity trading. Some crypto adopters do not quite agree that regulation is a good thing. But regulation will bring in more investors and the ecosystem will be much safer.
Crypto is attracting institutions
More institutional investors like Wall street, Fidelity, Nasdaq, along with Intercontinental Exchange are venturing into crypto.
The number of crypto hedge funds have increased meaning that institutional money is entering bitcoin and this will continue into the coming year.
The Bitcoin developer community is growing
Bitcoin developers work tirelessly to improve the network. These efforts boost the scalability of the network and add some privacy-enhancing features as well as functionalities like smart contracts.
The Liquid Network and Lightning Network which was released last year prove that the developers are working hard to keep the boat afloat.
Bitcoin always bounces back
Also, looking at the historical data, it is clear that BTC always bounces back. The coin has seen peaks all through its existence and has also been tagged “dead” by the media. Each time, it bounces back stronger and draws more institutional investors.
When BTC was a few years old in 2011, it was valued at $30 on Mt.Gox which was the most popular exchange then. After the exchange was hacked, BTC price fell to $2 in November 2011. It recovered in the following year and kept going higher and hit $260 by April 2013. Despite all the attacks on the coin, it hit $1,000 before the end of 2013.
In 2017, it reached its all-time high and even if it lost a large chunk of its value, it recovered. It also bounces back even though it may take a while. There have been so many positive developments surrounding Bitcoin in 2019 and all of these points to profitability.