Cryptocurrencies are experiencing a constant back-and-forth in this 2022, with continuous dips and rises in value. You may have heard that Bitcoin has lost almost half of its value in the first six months of the year, but far from provoking negative thoughts, there are those who are optimistic about the situation of cryptocurrencies, understanding that they are a volatile market, but that they also represent a great opportunity.
This is what assures, among others, the risk investor Tim Draper, who assures that Bitcoin will reach a new record in 2023. According to this expert, the most popular cryptocurrency among the digital currencies could reach a valuation of $250,000 by the end of 2023.
Bitcoin is currently hovering between $26,000 and $30,000 in valuation, having fallen from the $47,000 it was at before the end of last year. Despite the drop in valuation, Draper insists, “I’m more convinced than ever that it’s happening and there will be a dizzying rise by the end of next year.”
This implies that, according to the expert, now would be a great opportunity to invest in Bitcoin, as you can revalue what you have invested considerably and thus earn significant income. There is no certainty about it – investing in cryptocurrencies always carries that risk – but if his forecasts or even a not-so-positive scenario occur, investors could make very considerable gains.
Despite the volatile scenario, Bitcoin has not been discontinued and its use continues to expand, with countries such as El Salvador accepting it as an official currency, or with diversified uses. For example, Bitcoin and other cryptocurrencies are increasingly being used as a means of payment for online betting, due to their versatility and ease of use when seeking online entertainment with the possibility of making a profit in, for example, online casinos.
Tim Draper’s stance is supported by other major names in the cryptocurrency industry. The famous twin brothers Cameron and Tyler Winklevoss, popular at the end of the last decade for denouncing Mark Zuckerberg for snatching the idea of Facebook from them, are big investors in Bitcoin.
They recommend keeping a cool head and Sam Bankman-Fried, the richest person in cryptocurrency, has given loans to large companies in the sector to save their situation. Changpeng Zhao is also clear in this regard: “I am more optimistic in bear markets,” he noted in a tweet posted last Thursday.
Be that as it may, despite the fact that in recent weeks Bitcoin has lost some of its value, experts point out that this is nothing more than a common movement in such volatile markets. In fact, it is not the first time that there has been such a sharp decline in the value of some cryptocurrencies and they have finally recovered.
We will have to keep an eye on the markets to know how they evolve and be able to determine whether the recovery finally takes place again, and if, therefore, the current moment is a great opportunity, as some claim. Many experts do not doubt this and advise investing at this time. However it is done, it is important to remember that investing always involves risk, and that certain basic knowledge is necessary to analyze market movements and to be able to anticipate future trends.
