Bitcoin Value Hovers Near $100K | Should I Buy Bitcoin Now?

The word on the street is that Bitcoin (BTC) is flirting with the $100,000 value mark. In 2024, Bitcoin has been having a standout year, nearly doubling in value since January. November, in particular, has been an incredible period of growth, beginning at $72,000.

Bitcoin's surge—up approximately 130% this year—is largely attributed to the ultimate "Trump Card," and various market moves that have been set into motion since Donald Trump's victory in the 2024 presidential election, as the Trump administration looks to adopt a more crypto-friendly regulatory environment.

Is now the golden opportunity to add Bitcoin to your investment portfolio? Let's explore whether now is a good time to invest in Bitcoin and the potential risks involved.

Disclaimer: This article is intended for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct their own current market analysis, consult with a qualified financial advisor, and check a comparison service before making serious financial decisions.

What is Bitcoin?

If you've been living under a rock and don't know what Bitcoin is, let's talk Bitcoin basics. Bitcoin is the OG cryptocurrency/digital asset, launched in 2009 by an anonymous person or group known as Satoshi Nakamoto.

Designed to enable decentralized, peer-to-peer transactions using the Bitcoin blockchain, Bitcoin operates without the intervention of third-partis, uch as a central bank or financial instituional.

Over the years, Bitcoin has become known as "digital gold," due to its scarcity; there's a limited Bitcoin cap of 21 million tokens, making it a popular hedge against inflation and a reliable long-term store of value. Bitcoin is created through Bitcoin mining, which uses specialized hardware called ASICs (Application-Specific Integrated Circuits) to validate Bitcoin transactions on the decentralized blockchain network. As crypto miners carry out this process, they earn Bitcoin in the process.

So far, around 19 million Bitcoin tokens have been released into circulation. As the cap of 21 million draws closer, demand for Bitcoin is increasing, resulting in its value skyrocketing. As of November 28, 2024, one BTC is worth around $94,992.86 (USD), reaching record highs largely thanks to Trump's public interest in the crypto market.

Bitcoin in 2024

The above graph was sourced from Coinbase on November 28, 2024, showing Bitcoin's overall growth in a year.

While it's called a currency and can be used like real money, Bitcoin is not currently considered legal tender in the United States or most other countries. However, that could all be changing with Trump's pro-crypto stance.

One of Trump's initial post-election announcements was plans to establish the "Department of Government Efficiency," or D.O.G.E, playfully referencing Elon Musk's favorite digital currency, Dogecoin. Musk, along with Vivek Ramaswamy, will lead D.O.G.E. with the goal of streamlining the US federal government and improving efficiency.

Trump has even dabbled in cryptocurrency, having released the digital "Trump Trading Cards" non-fungible tokens (NFTs), tapping into today's meme culture. These NFTs include images range from him wearing an Iron Man-esque suit titled "Super Trump" to one of him titled the "crypto president."

Bitcoin investors have wagered that Trump's support for Bitcoin and other assets will lead to fewer restrictions in the industry. During the presidential campaign, Trump said he would make America the "world's capital for crypto." Trump has even suggested the US may pay off its national debt using cryptocurrency.

Republican senator Cynthia Lummis also introduced the Bitcoin Act of 2024, officially titled the "Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide" (BITCOIN) Act of 2024, in July. This proposes a US Strategic Bitcoin Reserve to hedge against inflation, fortify the dollar, and bolster financial leadership. The US currently holds approximately 203,000 Bitcoin, valued at $21 billion (USD).

What are Bitcoin ETFs?

Bitcoin ETFs, or exchange-traded funds, are investment vehicles that allow individuals to sink money into Bitcoin without directly buying or managing the cryptocurrency themselves. These funds track the price of Bitcoin, offering investors exposure to its price movements without wallets, private keys, or exchanges. This makes ETFs a convenient and regulated way to invest in Bitcoin, especially for those new to the crypto space.

Bitcoin ETFs come in two main types:

• Spot ETFs: These are backed by actual Bitcoin holdings, meaning the fund directly owns Bitcoin and tracks its real-time market prices. A Spot Bitcoin ETF is considered more transparent and aligned with the actual value of Bitcoin, making it attractive for long-term investors.
• Futures ETFs: These are based on Bitcoin futures contracts rather than the cryptocurrency itself. Futures ETFs allow investors to speculate on Bitcoin's future price rather than its current market value. These carry higher risks related to market speculation and potential deviations from actual Bitcoin prices.

Earlier in 2024, the US Securities and Exchange Commission voted to allow the sale of Bitcoin-based ETFs, for public use. This groundbreaking decision signaled the mainstream adoption of Bitcoin, bridging the gap between traditional finance and the cryptocurrency market. With ETFs, more Bitcoin investors could get involved through brokerage accounts and bypass crypto exchanges.

This caused a chain reaction, expanding access across Wall Street, institutional investors, and retail investors. Additional capital also flooded into the market. For example, BlackRock's iShares Bitcoin ETF options reached record highs of $1.9 billion in notional exposure on its first day of trading, demonstrating the intense demand for regulated Bitcoin investment options.

Should You Invest In Bitcoin?

Bitcoin and other cryptocurrencies are largely unregulated and are subject to volatility and price fluctuations, particularly during times of economic uncertainty that often accompany shifts in political leadership. This means there's a possibility of making gains, but you could also suffer crippling losses.

It all comes down to your individual risk tolerance and overall investment objectives: Are you hoping for short-term gains, or are you in it for the long haul?

For short-term investors, the potential gains are attractive. If Bitcoin mirrors its 2020 peak, future Bitcoin prices could climb to heights of $300,000. However, past performance is not necessarily indicative of future results. Ultimately, as Bitcoin's price increases, so do the starting funds required to obtain a decent ROI.

While Bitcoin may still have an upside in the near term, its historical four-year cycle suggests the current bull market is closer to its peak than its beginning, so you should prepare for increased volatility and lower profit margins.

If you're hoping for a get-rich-quick scheme, you'll need either significant disposable capital or a determined attitude to embrace the risks of buying Bitcoin at this stage in the game.

For those willing to try a long-term investment strategy, you're in luck as Bitcoin has consistently rewarded patience to produce monster returns. If your investment and financial goals extend into 2028 (when the next Bitcoin halving will likely occur), you can capitalize on another reduction in Bitcoin's inflation rate, greater worldwide adoption, and Bitcoin's ongoing evolution as the world's "digital gold" and a premium store of value.

How to Buy Bitcoin

After considering all the above factors, you may still be interested in adding Bitcoin to your assets. The most common method is buying Bitcoin via crypto exchanges, such as Coinbase, Kraken, and Binance, where you can also see the latest stats and other crypto stocks.

Here's a quick rundown of how to purchase Bitcoin.

1. Create an account. Sign up for a crypto exchange if you haven't already.
2. Verify your identity. Once your identity has been verified, you can add a payment method and link your bank account, credit card, or transfer funds.
3. Select your digital asset. Choose the cryptocurrency you're interested in buying, then click "Buy."
4. Review transaction fees. Pay attention to the relevant transaction fees, then confirm the transaction once you're happy.

Once you've purchased your Bitcoin, you should store it somewhere safe, like in a crypto wallet. Whether you opt for hardware or web wallets, your Bitcoin assets will be kept safe, accessible, and protected against cybersecurity threats while allowing you to make transactions easily.

Final Thoughts: Is Bitcoin a Good Investment?

Ultimately, investing in Bitcoin and other cryptocurrencies is a personal decision. If you decide to buy crypto assets like Bitcoin, you should already have a diversified portfolio. Aim to have a range of assets, rather than relying solely on speculative investments.

Think about investing in Bitcoin as similar to online gambling: only invest what you can afford to lose. Given the inherent risks, it's recommended to have a small allocation of "risky" assets like Bitcoin in your overall portfolio, around 5–10% or less.

Remember that Bitcoin and other digital currencies are still speculative investments (assets you put money into without gaining interest, hoping their value will increase over time). While short-term gains may be tempting, embracing a long-term perspective can help you navigate market ups and downs, ultimately unlocking Bitcoin's true potential. Don't invest in Bitcoin motivated by FOMO (fear of missing out)—only purchase it if you believe Bitcoin genuinely has long-term investment value.

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• How Can I Make Money Playing Blackjack?
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• What is RTP in Slots?
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• Blackjack Odds and Probability, Explained

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Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Investing involves risk, including potential losses. Bitcoin is still a relatively volatile asset and a potentially risky investment with ever-changing market dynamics. Readers should conduct independent research, seek advisory or brokerage services, or consult an official financial/stock advisor service before engaging in crypto transactions.