Introduction: Bitcoin in 2024

Whether it's 2014 or 2024, Bitcoin remains the foremost cryptocurrency on everyone's mind. Particularly during market surges, many experience FOMO and wonder, "What if I had invested $100 in Bitcoin 1, 5, or 10 years ago?"

In this blog, we'll explore Bitcoin as an asset, discuss various investment strategies, and answer the pressing question, "What if I invest $100 in Bitcoin today?"

What is Bitcoin (BTC)?

Bitcoin, commonly referred to as BTC, is a digital currency that functions like an online version of cash. It was created in 2008 by an anonymous entity known as Satoshi Nakamoto. Bitcoin originated from a whitepaper published online, describing a "peer-to-peer electronic cash system.

Bitcoin's creation introduced the world to cryptocurrency. Essentially, a cryptocurrency is a decentralized digital currency that exists entirely online and uses cryptography—a method of securing information by converting it into an unreadable format, known as encryption—for security.

Unlike traditional currencies such as the dollar or euro, which are regulated by central banks, Bitcoin operates on a decentralized network of computers worldwide. This decentralization ensures that no single institution controls the Bitcoin network. Instead, it is governed collectively by its users, making it a democratic form of currency.

How does Bitcoin (BTC) Work?

Central to Bitcoin is a public ledger called the blockchain. This ledger records every transaction, enabling users' computers to verify the authenticity of each transaction. This transparency ensures the system's integrity.

Miners, individuals using powerful computers, solve complex mathematical problems to validate Bitcoin transactions. When a problem is solved, the transaction is added to the blockchain, and the miner receives a small amount of Bitcoin as a reward. This process is known as Bitcoin mining.

Unlike traditional bank accounts, setting up a Bitcoin wallet requires no paperwork and can be done in minutes from your computer or smartphone. You can receive Bitcoins in your digital wallet from anyone else who has a wallet, with each transaction recorded on the blockchain.

What is the Price of Bitcoin and What gives it value?

According to CoinMarketCap Bitcoin price is around $66,000 (31 July), but in the volatile World of Cryptocurrencies, the prices can change very quickly. They might drastically go up or down.

But what gives Bitcoin its value?

• Scarcity - The total supply of Bitcoin is capped at 21 million. This artificial scarcity is embedded in Bitcoin's algorithm.
  
  
• Decentralization - Bitcoin is not controlled by any central authority, such as a government or financial institution. This means its value cannot be manipulated by these entities.
  
  
• Utility - Bitcoin transactions can occur directly between parties without the need for a middleman like a bank. These transactions are usually faster and incur lower fees than those processed by traditional banking systems or money transfer services.
  
  
• Potential for High Returns - Bitcoin's value has historically been highly volatile, offering the potential for substantial returns but also increasing the risk.
  
  
• Anonymity and Privacy - Although all transactions are traceable through blockchain technology, the identities of the individuals involved remain undisclosed.

Buying $100 Bitcoin in 2024 – is it worth?

In 2024, the crypto market has reached new all-time highs for major players like Bitcoin and Ethereum. This surge has sparked widespread FOMO (fear of missing out), prompting many to ask: Should I invest now? Is it worth it, or should I wait for a price dip? What are the prospects for Bitcoin?

Let’s imagine you decide to invest $100 in Bitcoin right now. What could happen to your investment? Can you still make a significant profit?

If this is your first time investing in Bitcoin, patience might be key—especially if you buy during a rally. To maximize your $100 investment, it might be more profitable to wait for a price dip. However, even investing $100 at the peak can still yield a modest profit.

If you already hold Bitcoin, adding another $100 worth of BTC could be very profitable long-term.

For example:

During its 2021 rally, Bitcoin reached an all-time high of $69K. If you had bought BTC at $65K, $100 would have gotten you approximately 0.0015 BTC. By March 2024, when Bitcoin hit $70K, your investment would have been worth $105—a small profit, excluding inflation. However, if you had also bought Bitcoin for $100 when it was $20K and $30K, your overall profit would have been much higher.

Many blockchain and Web 3 supporters view the technology as revolutionary, with significant potential to increase Bitcoin’s price. In 2024, events like the approval of spot Bitcoin ETFs in the U.S. and Hong Kong have generated significant enthusiasm among financial market participants. Interest in Bitcoin and its underlying technology is growing, especially among institutional investors, driving price increases and capturing public attention.

What Will You Need to Buy Bitcoin?

To start your cryptocurrency investment journey, you will need a few essentials:

• Crypto Wallet: To store your Bitcoin, you'll need either a hardware wallet or a hot wallet.
• Suitable Crypto Exchange: Find a reputable cryptocurrency exchange where you can safely buy and sell Bitcoin.
• Payment Method: Most major exchanges accept various payment methods, including bank transfers, credit card payments, or even other cryptocurrencies.
• Risk Tolerance: Cryptocurrency investments are volatile and carry risk. Make sure you understand your risk tolerance before investing.

Where to Buy Bitcoin?

To purchase cryptocurrency, you'll need to use crypto exchanges. In Georgia, several platforms are available, including Cryptal, Binance, Coinmania, and Mycoins.

For a seamless and low-cost experience, Cryptal is an excellent choice. Whether you're a novice or an experienced trader, Cryptal offers two user-friendly methods to buy cryptocurrencies: Convert and Spot Trade.

• Convert: A Quick and Easy Option for Beginners
  - Visit Cryptal
  - Click on “Buy Crypto”
  - Select Bitcoin and Stablecoin
  - Enter the desired amount
  - Click "Buy"
  
  
  

Within seconds, your Bitcoin will appear in your crypto wallet.

• Spot Exchange is for the Experienced Trader. The feature allows you to buy Bitcoin from another individual on the platform. Here’s how it works:
  - Submit a buy request on the exchange
  - Specify the amount and price range for BTC

If a seller agrees to your terms, the transaction will be completed. This method is ideal for experienced traders looking to purchase crypto at the best possible price.

Strategy for Buying Bitcoin

Investing in Bitcoin can be approached with a specific strategy, each method catering to different investor profiles and carrying unique risks.

1. Buying Bitcoin: Buying and holding Bitcoin through exchanges or crypto wallets is the most straightforward method. This approach is suitable for those comfortable managing digital assets, but it comes with risks related to Bitcoin’s price volatility and the security of digital wallets.
2. Trading Bitcoin: Actively buying and selling Bitcoin on exchanges is ideal for those experienced in trading and understanding market trends. The primary risk here is the high market volatility.
3. Dollar-Cost Averaging (DCA): Investing a fixed amount into Bitcoin at regular intervals. This method is perfect for long-term investors looking to mitigate the impact of volatility by spreading their investment over time.

Benefits of Investing in Bitcoin

• High Potential Returns - Compared to traditional investments like the stock market, Bitcoin and other crypto assets have demonstrated significantly higher potential for returns.
  
  
• Liquidity - Bitcoin trading is available 24/7 on various cryptocurrency exchanges, offering high liquidity and the flexibility to trade at any time.
  
  
• Future of Currency - Many believe digital currencies are the future, and investing in Bitcoin now could yield substantial returns as digital currencies become more widely adopted.
  
  
• Inflation Hedge - With a capped supply of 21 million, Bitcoin could serve as a hedge against the inflation of fiat currencies.

Summary

Creating a foolproof portfolio can be achieved by investing in high-risk, high-reward assets like Bitcoin, alongside stable assets like gold or other precious metals. Whether you should invest $100 in Bitcoin now depends on your views on this cryptocurrency and its future potential.

To buy Bitcoin, you will need a Crypto Wallet, A place to securely store your Bitcoin, and Cryptocurrency Exchange - A reliable platform like Cryptal, suitable for both beginners and professionals.

Please note that this article is not intended as investment advice.