What should you know before investing in BITCOIN in 2024

Is BTC worth the hype now?

Bitcoin's bullish run, the history and the progress, halving, how-to

What Is Bitcoin in simple terms?

Bitcoin, the first decentralized* cryptocurrency (digital currency), was introduced by an individual or group of individuals under the pseudonym Satoshi Nakamoto in a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," published in October 2008. Unlike regular money that can be printed endlessly, there's a limited supply of Bitcoin. There will only ever be 21 million bitcoins in existence, which makes it similar to precious metals like gold. This scarcity is one reason why some people see Bitcoin as a store of value, similar to gold or other commodities.

Can i buy and use bitcoin?

Yes, once you have bought bitcoin through the exchanges like crypto.com, you can make online purchases (if the merchant accept digital currency) or even send to your friends/family. So simply, you can treat it like your USD or EUR.

Significant BTC timestamp

1. 2020 Bitcoin Halving and Price Surge:

• Bitcoin's third halving occurred in May 2020, reducing the block reward to 6.25 bitcoins per block. Historically, halving events have been associated with significant price rallies, and 2020 was no exception, with Bitcoin's price surging to new all-time highs in late 2020 and early 2021.'

1. 2021 Tesla's Bitcoin Investment and Environmental Concerns:

• In February 2021, Tesla announced that it had purchased $1.5 billion worth of Bitcoin and would accept Bitcoin as payment for its products. This move further validated Bitcoin as a legitimate asset class.

• However, concerns over Bitcoin's environmental impact, particularly its energy consumption due to mining activities, gained prominence, leading to debates about the sustainability of Bitcoin's growth.

1. 2023 & 2024 Bitcoin ETF and upcoming halving in April 2024

• The approval of Bitcoin ETFs represents a major milestone in the mainstream adoption of digital assets. This approval not only legitimizes Bitcoin as a viable asset class but also opens the floodgates for billions of dollars in institutional capital to enter the market. With the introduction of Bitcoin ETFs, Institutional investors and hedge fund can now allocate funds to Bitcoin within the confines of their existing frameworks, driving substantial inflows into the market.

• The Bitcoin halving is a pre-programmed event built into the protocol that occurs approximately every four years, reducing the rate at which new Bitcoin is created by half. Previous halving events in 2012, 2016, and 2020 have seen Bitcoin's price surge in the months following the event, with gains ranging from hundreds to thousands of percent.

Some Bitcoin ETFs that you can invest in now (as of Feb 2024)

1. Ishares bitcoin trust (IBIT)

2. VanEck bitcoin trust (HODL)

3. Fidelity wise origin bitcoin fund (FBTC)

4. Invesco Galaxy Bitcoin ETF (BTCO) 

Eberle, the chief investment officer of California-based crypto investment firm Castle Funds, also cautioned that bullish sentiment could be overblown, because the ETF approvals do not necessarily guarantee billions of dollars of inflows on the first day of trading.

While short-term volatility may persist, the long-term trajectory for Bitcoin appears decidedly bullish as it continues to solidify its position as a foundational asset in the global financial landscape. 

This is not a financial advice but this is based on my reseach and opinions on BTC.

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*Decentralised - there's no single authority, like a bank or a government, controlling it. Instead, it's managed by a network of computers all around the world, which work together to keep track of transactions and ensure the system runs smoothly.

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