Bitcoin: The Evergreen Tree of the Investment World, Four-Year Cycle Influence Weakens but Still Popular
BTC has a unique pattern: every four years, its 'production' rate halves. In 2012, the number of new BTC produced per block decreased from 50 to 25, and by 2024, this number will drop to 3.12. This change has previously caused BTC prices to soar, driving up other cryptocurrencies as well.
But now, the situation has changed. Most of the BTC is already in circulation, so this 'slowdown' has less and less impact on the price. The good old days when buying would lead to price increases may be gone for good.
So what has changed in the world of cryptocurrencies?
Two key factors: the introduction of cryptocurrency ETFs and the proliferation of altcoins. ETFs have opened up a broader market for Bitcoin, but most of the liquidity has flowed toward Bitcoin, leaving altcoins less fortunate. Moreover, there are now countless altcoins that 'borrow' from each other, spreading the market's money even thinner.
As a result, times are tough for altcoins. BTC's market share is growing larger, leaving fewer opportunities for altcoins. If you still want to invest in altcoins, you need to be vigilant and selective.
In contrast, BTC is like a top player in the tennis world, playing a winner's game. Its advantages are evident:
Fiat currencies have been depreciating, while Bitcoin is becoming increasingly scarce, which is where its value lies. The world is printing money, but the number of Bitcoins is fixed. When gold prices rise, Bitcoin won’t lag behind, and it may even outperform. Additionally, more and more countries and institutions are buying Bitcoin; it has become a global investment choice.
So, if you want to stand firm in the world of cryptocurrencies for the long term, Bitcoin is a good choice. As for altcoins, the risks are too high and should be approached with caution.
Overall, while Bitcoin's four-year cycle is still in place, its influence on price has diminished. However, this does not affect Bitcoin's status as a star in the investment world. As for altcoins, they may not be so lucky.
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