"Soaring" Bitcoin: Is It Still a Viable Investment?

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Blockchain technology has already been piloted in cross-border payments, settlements, and other financial sectors, while finding applications in non-financial areas like medical records and digital copyrights — signaling a promising future.

In less than two months, Bitcoin's price surged by 111%, reaching nearly $9,000 per coin. This dramatic performance has once again captured global attention. Will cryptocurrencies stage a comeback? What investment value does the underlying blockchain technology hold? These questions are now top of mind for investors.

Halfway to Recovery or a Precarious Peak?

"Although we’re only halfway back to its peak of $20,000, this year’s Bitcoin rally has been remarkable. Even someone like me, accustomed to the volatile 'crypto world,' feels the excitement," said Wang Yingjun, a small electronics store owner in Jinan, during an interview.

Huobi Global data shows Bitcoin surged past $9,000 on May 31 before retreating to around $8,200. This $8,700 mark represents a 111% increase from April’s $4,098 and a 132% jump from January’s $3,754.

Such momentum hasn’t been seen since 2017, when Bitcoin skyrocketed to $20,000 before plummeting by 76% in 2018. While Bitcoin has now rallied for four consecutive months in 2019, skepticism remains.

Why the Skepticism?

  1. Lack of Intrinsic Value: Bitcoin’s global liquidity and limited supply are strengths, but it lacks government backing or tangible value.
  2. Market Volatility: Rapid price surges often precede dramatic collapses.
  3. Regulatory Uncertainty: Most countries still don’t recognize cryptocurrencies as legal tender.

Risks of Off-Exchange Trading

With China banning crypto trading platforms, peer-to-peer transactions thrive via WeChat/QQ groups. However:

👉 How to safely invest in Bitcoin today

Blockchain: The Real Opportunity?

Analysts suggest focusing on blockchain technology rather than speculative crypto trading:

FAQs

Q: Is Bitcoin a good investment in 2024?
A: While short-term gains are possible, Bitcoin remains highly volatile. Diversify with blockchain-focused stocks for stability.

Q: How can I buy Bitcoin securely?
A: Use regulated international exchanges and avoid unverified peer-to-peer deals.

Q: What’s the future of blockchain?
A: Expect broader adoption in finance, healthcare, and IP management due to its tamper-proof nature.

👉 Explore blockchain investment strategies

Key Takeaways

Keywords: Bitcoin investment, blockchain technology, cryptocurrency risks, off-exchange trading, financial applications, digital copyright, A股 blockchain stocks.


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