DOWN BUT NOT OUT - Why BTC And DeFiChain Are Still On Track for New Record Highs
With the crypto market’s recent decline and with many predicting a long crypto winter, it's really tempting to panic. Here’s a quick piece of advice, though: don’t. Although the crypto market is going through a rough patch now, cryptocurrencies such as bitcoin (BTC) and DeFiChain (DFI) are - based on their price history - still on track for new highs.
Don’t believe us? Let's zoom out and take a look at what happened with these investments in previous years.
KEY TAKEAWAYS:
From Zero to Hero
When Bitcoin was introduced in 2009, its price was zero, and it took a year for its price to jump to around $.09. However, on 13 April 2011, its price rose from $1 to a peak of around US$29.60 by 07 June 2011 - a gain of 2,960% within three months.
In mid-November, bitcoin's price bottomed at about US$2.05 amid a sharp decline in the crypto market. The following year, however, its price rose from US$4.85 on 9 May to US$13.50 by 15 August.
Over the course of 2016, prices slowly climbed to over US$900 by year's end. During 2017, BTC's price hovered around US$1,000 until mid-May when it broke US$2,000, then skyrocketed to US$19k on 15 December.
By this time, BTC had caught the attention of mainstream investors, governments and economists - prompting various entities to develop other cryptocurrencies to compete with it.
However, by mid-December, BTC's price had fallen again to approximately $6,000.
In 2020, with the global economy shutting down due to the COVID-19 pandemic, BTC’s price rose to kickstart the year at above US$6k. During the last two months of 2020, it traded at just under US$29k, down from US$19k on 23 November.
BTC surpassed US$40,000 on 07 January 2021. By mid-April, BTC prices reached new all-time highs of over US$60,000 and reached a peak of around US$63k on 12 April 2021.
At the time of writing, BTC is trading at around $20k.
Not Bad for a Rookie
The cryptocurrency known as DFI is an integral unit of account in the DeFiChain blockchain. Among its many utilities are:
The DeFiChain Foundation issued roughly 600 million DFI on 11 May 2020. Initially valued zero dollars, it went up to approximately 4.86 dollars the following year in the same month. In December of that same year, its price shot up to US$5.47 from US$1.82 on 19 July 2021.
In May 2022, DFI’s price was around US$4.62. At the time of writing, it is currently trading at around US$0.91.
What History Has Taught Us
If history has taught us anything, it is that long-term investments pay off. This is echoed by world-famous investors Warren Buffett and Shelby M.C. Davis, who respectively said “Always invest for the long term” once “Invest for the long haul. Don't get too greedy and don't get too scared”.
Why invest for the long term? As you can see from the charts that we shared earlier, instant gratification is almost non-existent with investing. It takes years for returns to be realized. Also, downtrends are normal - especially in a relatively new market such as the crypto market.
Despite the current dip in the crypto market, history shows - particularly in BTC and DFI's case - that this is a temporary state. It is common for the market to go through periods of volatility, then return to its normal growth trajectory.
Moreover, the above charts show that both BTC and DFI keep breaking records year after year.
So, what’s the best approach to investing during a downturn?
While we do not provide financial advice, we find that dollar cost averaging and diversification are highly effective ways to maintain a healthy portfolio.
Also, as our Co-Founder and CEO Julian Hosp stated before, “At Cake, we see this crypto winter as the time to consolidate, recalibrate and build.” So, take this opportunity to review your portfolio and to learn more about the market or investing.
In any case, If you want to generate cash flow despite the crypto market’s current condition, you may click?here?to sign up and use our highly transparent and secure DeFi services.
You will get US$30 worth of DFI when you register successfully and make a deposit of US$50 or more, and allocate the amount for at least 28 days into either our?Lending,?Staking Freezer?or?Liquidity Mining Freezer?service.
So, sign-up now and start generating cash flow with us now!