Amid Bitcoin’s ongoing rally, skeptics have characterized its rise as ‘just another bubble’. However, analysts are pointing to certain signs that may signal the biggest boom yet for the world’s original cryptocurrency: Bitcoin’s long-awaited entrance into the mainstream.
With the supply of Bitcoin increasing at about 2% annually and demand skyrocketing, experts have good reason to believe that this is not a mere spike before a trough.
Public Support of Bitcoin is Setting Up a Multi-Year Rally
The last Bitcoin rally lasted about two years, nearing its end with a soar in prices in December 2017 and a sharp decline in the months that followed. In early 2018, the digital currency lost about 80% of its value, the so-called bubble seemingly ‘popping’.
Experts have commented that the present rally will have some crucial differences from the previous two-year rally, with additional signs that may indicate the beginning of a new multi-year rally. The adoption of Bitcoin by popular payment company Venmo, which now offers in-app purchases of cryptocurrency, has further driven the attention of the general public toward the digital currency. With advances like these making Bitcoin significantly more accessible to everyday consumers, cryptocurrency comes several steps closer to being the world’s default currency.
Bringing New Value to the World of Finance
Bitcoin is not only entering the mainstream with consumers, but also with corporations’ financial activities. Large publicly traded companies like Tesla and Square have invested billions to put Bitcoin onto their balance sheets, alongside public support from the Federal Reserve acknowledging the undeniable value of Bitcoin.
“I think bitcoin is really on the verge of getting broad acceptance by conventional finance people.” said Tesla CEO Elon Musk earlier this year. Ignoring this impending tipping point in the mainstream usage of Bitcoin could cost investors dearly in terms of opportunity.
If Bitcoin repeats the level of increase that brought its price from $3,000 in 2020 to $50,000 in early 2021, it could run all the way up to $1 million per coin. These huge jumps in value have been proven possible time and time again, and appear only more likely to increase with backing from these large corporations.
Bitcoin Mining as the Next Smart Investment
Purchasing Bitcoin miners provides you with the opportunity to obtain Bitcoin at a significantly lower cost, as opposed to direct purchase from an exchange. At a starting price point of approximately $6,000, these mining rigs are capable of unearthing Bitcoin which, at the time of this writing, is valued at $56,000, making mining rigs a lucrative investment. Further, this investment is fully depreciable on tax returns, allowing you to buy Bitcoin at the price of a rig and saving you money at the end of the year.
As Bitcoin’s rise to dominance drives up coin prices, the value of investing in proper mining equipment, hosting, and management services is paramount. Whether investing in cryptocurrency for the first time or planning to expand your mining farm, it is crucial to select proven and reputable partners to minimize risk and maximize potential gains.
Wattum Management provides a suite of services to manage the mining rigs of customers worldwide. Offering both new and used mining equipment, hosting, management, firmware, and a mining pool, Wattum’s comprehensive expertise results in sound decision making on our customers’ behalf.