On the negative side, that means the downswings can be more dramatic. However, the counter to that is that prices can soar unexpectedly. Therefore, even if the cost of mining coins currently outweighs the value, things could quickly change. For evidence of how fast the landscape can shift, we only have to look back to 2017. From a fairly modest starting point of $1,000 at the start of the year, BTC price charts ended 2017 just short of the $20,000. Should another catalyst cause a boom, any FUD (fear uncertainty doubt) regarding mining would be forgotten.
Another point to note is that sensationalist headlines don’t apply to people wanting to buy Bitcoin. The average investor doesn’t really care how or where their coins from. All they really want to know is the price they paid and what the current value is. Of course, problems with mining will cause transaction times to increase and, as we’ve seen with Ethereum (ETH), that can cause price fluctuations. However, these changes aren’t likely to be as significant as certain news stories could suggest. What’s more, miners dropping off due to increasing costs will actually make the process more profitable for those that are left. In essence, the process is almost self-regulating.
Finally, it’s worth taking a look at the price of BTC in USD since the start of 2019. Despite being a fairly limited sample, the token’s value has been fairly stable. Although there have been losses, the price hasn’t moved much more than 10%. If we compare Bitcoin’s fairly linear path through 2019 to Ethereum’s, we can see the latter has been much more volatile. An 80% surge in January has caused analysts to predict a $500 valuation by the close of the year. However, while the value is still comparatively strong to what it’s been in recent months, the latest spike appears to have been a mini-pump. For short-term investors, such movements are great. However, Bitcoin appears to be taking a steadier course, irrespective of the cost vs. value debate. For long-term investors looking for a stable crypto in 2019, the evidence would suggest BTC is one of the better options.
*Information in this article should not be taken as investment advice.
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