Over the past six months, Bitcoin has greatly increased its position in the global financial market. Of course, there will always be skeptics with their predictions regarding the complete depreciation of the leading cryptocurrency. However, the vast majority believe that Bitcoin will reach $100,000 in the long term. It is such optimists that encourage ordinary investors to purchase assets.
In this article, we will look at the pros and cons of investing in Bitcoin in 2022.
Reasons for Bitcoin's rise to $42,000
Below we highlight the five main reasons why Bitcoin not only updated its all-time high of $20,000, but also headed towards $42,000:
- Technical analysis. Many traders have repeatedly argued that $12,500 is a significant level, consolidation around which will trigger a bullish price rally.
- Spread of coronavirus COVID-19. This epidemic has become a real shock to the economies of all countries of the world. The authorities of the United States and other developed countries began to print billions, which certainly led to inflation. It was inflation that became the main incentive for ordinary users to start purchasing Bitcoin.
- May halving. In simple words, this is a reduction in the reward to miners for mining blocks.
- Capital influx from institutional investors. Over the past six months, many large hedge funds have announced their investments in Bitcoin. MicroStrategy alone invested over $1 billion in Bitcoin, which certainly became a driver for the growth of the price of the cryptocurrency.
Mining - does it make sense to choose cryptocurrencies?
It is best to focus on the top 20 coins in the overall ranking. They can be viewed on coinmarcetcap. If you go to the whattomine service, you will find many altcoins that seem more profitable, but, alas, there is no confidence in them and after a month their price may drop significantly. Every day new names appear in the leaders on whattomine, and then also disappear imperceptibly. Constantly switching to mine new tokens and convert them into more stable coins will take a significant amount of time.
Ethereum remains one of the leaders in mining. This coin has already shown stable growth, a large community has formed around it, and capitalization also inspires confidence in its prospects. The Constantinople fork has already been implemented and has been postponed several times.
There are automated services that, within their pool, automatically select the most profitable coins for the current time. If there is a strong decline in price, the place of these tokens is taken by other most profitable ones.
Using such services is useful for beginners due to the ease of connection and ease of configuration. But taking into account the commissions that such a pool takes, many come to the conclusion that it is better to mine on their own.
If the focus is on mining the main stable coins, it is better not to sell at least part of it immediately, but to hold it until a convenient moment when the token resumes its growth.
In mining, exchange trading strategies should be taken into account.
Today, single miners who raised the Bitcoin mining industry cannot withstand the competition and are leaving for niche projects related to other digital currencies. Accordingly, the choice of crypto for mining matters.
If a miner wants to mine several coins at the same time, he will have to buy a gadget for each of them.
Where to buy bitcoin?
If you believe in the future prospects of the world's main cryptocurrency, then it makes sense to invest in it. This can be done using different methods. For those who have never done this before, the easiest way is to use the Matbi .
You must register by phone number or email. An application is available for Android and iOS, through which it is also possible to register. To purchase Bitcoin, you will most likely also need identity verification. This is normal practice for serious services, which includes Matbi, which has been successfully operating on the market since 2014.
You can replenish your account on “Matbi” in rubles, dollars and euros. To deposit funds, the user can choose from payment systems VISA, Mastercard, Qiwi, Yandex.Money, and Zolotaya Korona. The same methods are available for withdrawing funds that can be received after selling Bitcoin on Matbi. Buying and selling is carried out at the current rate minus the exchanger's commission. The exchange operations themselves are not accompanied by additional fees.
Purchased bitcoins can be stored directly on “Matbi”. It is also an online wallet with a three-level security system: pin, code from SMS and email. Of course, if the coins were purchased for a very large amount of money, then a hardware wallet would be a more reliable storage.
If the user has any questions, the Matbi team has prepared detailed video instructions .
Advantages and disadvantages
Mining on ASIC chips;
Siberian data centers with low electricity tariffs;
hashrate 150.5 Ph/s;
equipment availability: 99.97%, i.e. operation with almost no downtime;
zero payment commission;
2-factor authentication;
technical support 24 hours a day, seven days a week;
accruals are received every day, immediately after payment;
ease of investing: just register and top up your account in the investor’s account;
promotions with discounts, promotional codes on holidays;
own network of data centers in Siberia.
Only Bitcoins and Ethereum are mined
Where will Bitcoin go?
As of January 14, Bitcoin is at the phase where negative news cannot have an impact on crypto market participants. For example, expert Raoul Pal claims that the current demand for Bitcoin is the largest he has ever seen in his life.
Alpari brokerage firm analyst Vladislav Antonov is confident that there is a high probability that the price of Bitcoin will fall by at least 30% in the near future and recommends starting to take profits now.
The head of Xena Financial, Anton Kravchenko, warned on social networks that it is too late to buy Bitcoin and it is better to do it during the correction. In his opinion, Bitcoin will inevitably drop to $15,000.
CEX.IO exchange analyst Yuri Mazur believes that the price of the leading cryptocurrency can once again test $20,000, and after that $13,000.
Analyst Michael van de Popp writes that Bitcoin will only fall to $14,000 for a while, after which it will strengthen the bullish rally above $42,000.
At the moment, the most active investors in the Bitcoin market are institutional investors, not retail investors. The thing is that due to political and economic problems, people began to be more careful in investments. The main problem on a global scale is the spread of the COVID-19 coronavirus, which has simply forced billions of people to live in difficult circumstances. The economy is falling, the price of oil is falling, the US dollar is falling, and all this is becoming a kind of driver for the growth of Bitcoin, which, by the way, has begun to correlate less and less with stock markets.
When the whole world is vaccinated against COVID-19, there is a high probability that the Bitcoin rally will continue.
What world experts say about Bitcoin
Analysts have differing opinions. Some expect strong growth, while others strongly disagree with this. Thus, an Internet expert with the nickname PlanB, the author of the popular Stock-to-Flow concept, admits that the price of Bitcoin will drop to $30,000 by the end of the year.
This will happen if the chart moves according to a pattern based on the historical values of the main cryptocurrency.
But the vast majority of analysts are still focused on long-term and confident growth. Victor Pershikov cites a number of factors provoking an increase in cost:
- increasing the number of investors in Bitcoin and other crypto assets;
- restoration of the network hashrate after miners from China were disconnected;
- accumulation and retention of currency in wallets with large balances without significant sales;
- inflation risks in classical markets;
- flight of traditional investors into defensive assets to maintain portfolio profitability.
Most market participants accumulate currency on their balance sheets, expecting growth to $70–100 thousand. When this indicator is reached, a massive exit from the asset and profit-taking may begin. Thus, this will inevitably lead to a course correction.
Why should you buy Bitcoin?
Almost every day, large financial organizations enter the Bitcoin market and already claim that in the long term, Bitcoin will take the place of gold. If multi-billion dollar organizations are investing in Bitcoin, it means they have confidence in it. Remember this!
Probably the main news of 2022 is the support of cryptocurrencies in the largest electronic payment system PayPal, which has a user base of over 200 million people. Moreover, during 2022, merchants will be able to accept payments via PayPal in cryptocurrencies. For millions of people, this is the easiest way to invest in Bitcoin directly from your PayPal wallet.
Should you trust it?
On the official website you can see the registration certificate with signatures and seals. Looks pretty plausible. The offshore Cypriot registration is a little confusing, which investors often mention in reviews, but the company’s activities are legal.
The domain was registered in 2022 not to a private individual (as is often the case with “fake” HYIP companies), but to the company Newstack Industries Ltd.
We did not find any reviews about non-payments, which means the project is working. The domain is old, and the company has been on the market for more than 3 years - a good sign.
How much does power cost on cloud mining platforms?
Let's try to calculate whether the benefits from leased capacity are comparable to the benefits from real ones. Let's use a simple calculation method. Let’s take the cost of renting capacity for a year from specific services, then convert this amount into video cards or ASICs, which in total will give approximately the same hashrate, and compare how much more profitable one or another option will be.
Genesis Mining is one of the TOP reliable sites for renting equipment to SHA-256 (Bitcoin) miners. When registering, they offer to sign a contract for $986 for one and a half years for 28.5 TH/s. So, while maintaining the current rate, you will be able to mine about $1025, that is, you will barely be in profit (and if the rate drops slightly, you will be in minus). The site leaves such prices open and does not hide. Moreover, the company has no free capacity left either for this plan, or for the more budget plan, or for the Diamond Plan - under all of them it says out of stock. There is also a 30-month lease option, but this is also not available today. The situation is similar on another top service, HashFlare.
Bitcoin (BTC) mining at its capacity is also not at its peak now, but with top-end equipment like the Bitmain Antminer S19 you can still make a profit within a year. And by the end of the year, you will not only make a profit, but you will also have a working ASIC with its cost in your hands.
Conclusion
You can make money from mining, and it’s quite easy. This attracts many investors, from professionals to dummies who are looking for an easy way to make money. It is precisely this target audience that cloud mining services attract.
Nothing in life just happens like that. To make money from cryptocurrency mining, you really need to invest in equipment and build a farm yourself. Instead of choosing the lesser evil of cloud miners, we suggest you instead look at the ranking of the best mining pools . Or connect to our Hashalot mining pool to mine Ethereum.
Good luck!
How does Cloud Mining work?
Since mining Bitcoin at home on ASICs is incredibly expensive, many are looking for cheaper solutions that do not involve buying equipment that consumes electricity and quickly becomes obsolete.
In light of this, cloud mining seems like an ideal solution: you “rent” hashing power from miners who are located in a remote, cool location.
The cloud mining company takes care of servicing the miners, and you share the income from this operation.
If you Google the term “cloud mining” you will find endless offers of such services. Most of these websites will show you a lot of confusing numbers (especially if you are new) and promise that cloud mining is...
“the easiest and most effective way to earn bitcoin.”
It turns out that everything looks good, except that you can't always count on these companies to deliver on their promise.
