Bitcoin has been traded for over 4,500 days, and data from Blockchain.com shows that hodlers of the cryptocurrency have experienced profitable days for more than 88% of that time. This contradicts the common belief that crypto is highly volatile and unpredictable. It proves that holding Bitcoin for the long term can be profitable, provided certain conditions are met.
One of the critical factors that make Bitcoin a viable store of value is its hard limit on total supply. This means that there is a finite amount of Bitcoin that can be mined, which gives it scarcity and value. Additionally, its seamless global usability makes it accessible to anyone with an internet connection, regardless of their location.
However, it is essential to understand Bitcoin's market cycles to avoid buying high and selling low. Daily traders on crypto exchanges can make consistent profits, but they must be aware of the risks associated with short-term trading.
There are four main types of crypto investors: maximalists, hodlers, fomoers, and traders. Maximalists believe in Bitcoin's long-term potential and hold on to their investments regardless of short-term price fluctuations. Hodlers also hold on to their investments but may sell them during market rallies. Fomoers are susceptible to buying high in fear of missing out on potential gains, while traders make daily trades for small but consistent profits.
In a recent development, General Bytes, a manufacturer of Bitcoin ATMs, closed down its cloud services due to a security vulnerability that allowed attackers to access users' hot wallets and sensitive information. The company had conducted multiple security audits, but the vulnerability went undetected until recently.
In conclusion, Bitcoin's historical price performance proves that it can be a profitable store of value if certain conditions are met. It is crucial to understand the market cycles and investment mindsets of crypto investors to make informed investment decisions. Additionally, security remains a significant concern in the crypto ecosystem, and users must take precautions to protect their assets.
Also read - Traders are Getting Greedy Again: Are Good Times Coming for Crypto Market?
