Why the best time to invest in crypto is now | CSQ

Bitcoin has lost three-quarters of its all-time-high value. Some other cryptocurrencies fared even worse, giving millions of crypto-skeptics an opportunity to gleefully post “I told you so!” messages on their social channels.

Their satisfaction stems from the frustration of missing out on the crypto gold rush where the early adopters made truckloads of money. For example, last year, the 10,000 Bitcoins that paid for two pizzas in 2010 reached a value of $680 million and the net worth of the founder of Binance crypto exchange exceeded $96B. Still, neither “invest in crypto!”, nor “never invest in crypto!” mantras are wise; smart investors know that the best approach is “invest in crypto when the time is right.” And the right time is now, while the crisis is still going on.

Extreme volatility has always been the inevitable characteristic of Bitcoin and cryptocurrencies backed by no assets, so the current meltdown in their value is nothing new. In 2018, Bitcoin hit $19,783/coin price, then plunged to less than $3,300/coin, an even sharper drop than has occurred in the past six months. Those who bought Bitcoins at the top, then sold them at the bottom, lost a lot. Those who bought Bitcoins at around $3300 enjoyed the wild ride to over $64800, a return of around 2000%.

Now that the Bitcoin price is once again a tiny fraction of its former highs, “it has nowhere to go but up!” I am confident that it will recover its recent losses and exceed $100K per coin pricing, but there are some important clarifications I need to add to my forecast.

First after all, I have no financial reason to promote Bitcoin. In fact, earlier this year, I introduced ours Unicoin as the superior cryptocurrency: equity backed and dividend paying.

Second, before eventually going up, Bitcoin can still go lower. Bitcoin has stabilized at just over $20K per coin now, but no one can be sure what will be Bitcoin’s new bottom before the next rally.

ThirdBitcoin’s recovery is likely to take about three years – investors do not easily forgive a 75% drop in value.

Fourth, the “nowhere to go but up” logic cannot be applied to many other worthless cryptocurrencies that will burn out. “Doggy coins” like Dogecoin (down 92% from an all-time high value) or Shiba Inu (down 86%), made as jokes, are likely to be replaced by dividend-paying cryptocurrencies backed by valuable assets.

Bitcoin’s growth is expected because it is the only household name in the cryptocurrency market likely to grow over 3000%, for its current valuation of just under $1T, to $30T, or a third of the $90T combined valuation of fiat currencies. Crypto is a superior technology for digital money, which is the dominant form of money today. Humans have evolved from using shells, gold and banknotes, to scanning their phones in shops or transferring money with a few keystrokes. Nevertheless, while the rapid growth of the cryptocurrency market seems almost guaranteed, the leaders of this market will change in the same way that Facebook replaced MySpace or Google replaced Lycos and AltaVista.

Finally, despite my expectations for Bitcoin’s recovery, I don’t think it’s the best investment opportunity in crypto. Created by an anonymous person to provide anonymity to financial transactions to those who had something to hide, Bitcoin is bound to lose market share to cryptocurrencies that offer more sensible business models, including anti-volatility features and dividend payouts.

Just as the Dot-Com implosion of 2000 did not stop the dizzying growth rate of the Internet, the current adjustment of the crypto market will only serve to replace the ineffective and outdated concepts with the new generation of cryptocurrencies.

Alex Konanykhin is the CEO of Unicoin, the first equity-backed, dividend-paying cryptocurrency. He is also an executive producer of Unicorn Hunters, “the most iconic business series of recent times,” according to Forbes magazine.