Bitcoin has been a popular investment asset since its inception in 2009, and data shows that hodlers have experienced profits on the majority of trading days. According to Blockchain.com, Bitcoin hodlers enjoyed profitable days on 88.50% of the 4,593 days the cryptocurrency has been tradable. This challenges the historical narrative that crypto has depreciating volatility, proving that holding Bitcoin is provably profitable in the long run.
The profitability of Bitcoin can be attributed to its hard limit on total supply and seamless global usability. These factors have contributed to its status as a store of value, and the historical price performance of Bitcoin confirms its potential as a profitable investment. However, investors must understand Bitcoin’s market cycles to maximize their profits and avoid buying at the top and selling at the dip.
Out of the 4,593 trading days, only 531 or 11.56% were unprofitable for long-term hodlers. These unprofitable days occurred between December 28, 2022, and June 12, 2022, during which Bitcoin was priced above the range of $26,246.58 and $28,344.5. This emphasizes the importance of understanding market cycles, and investors should exercise caution to avoid significant losses.
While some investors prefer to hold Bitcoin long-term, others make daily trades on crypto exchanges for consistent profits. Regardless of the investment strategy, understanding the market cycles and trends is crucial for maximizing profits.
However, investing in Bitcoin is not without its risks, as demonstrated by the recent security vulnerability discovered by General Bytes. The manufacturer of Bitcoin ATMs had to shut down its cloud services after discovering a vulnerability that allowed attackers to access users’ hot wallets and gain sensitive information. Karel Kyovsky, the founder of General Bytes, stated that multiple security audits since 2021 did not identify the vulnerability.
In conclusion, Bitcoin’s profitability challenges the historical narrative of depreciating volatility in the crypto market. Hodlers have experienced profits on the majority of trading days, making Bitcoin a potentially lucrative investment asset. However, understanding market cycles and trends is essential for investors to maximize their profits and avoid significant losses. Additionally, investors should be aware of the potential risks associated with investing in Bitcoin, such as security vulnerabilities.