Why may it be impossible to buy Bitcoin in 2021?
More and more people get interested in cryptocurrencies and begin to consider them as an option for long-term investments watching the annual rise in the price of Bitcoin. The demand for this main cryptocurrency continues to increase, in many countries of the world digital assets get legalized and it becomes allowed to use them for payments of goods and services and launch many new projects on the blockchain. Currently, we tend to predict a further increase in the central cryptocurrency because of the great potential of Bitcoin and the unstable economic situation in the world that makes people look for an alternative to fiat currencies.
At the same time, we should understand that the number of Bitcoins is limited, the emission rate is constantly decreasing. That means a coming currency deficit and a constant annual price increase. Of course, those who have already managed to get Bitcoin and those who have been holding it for a long time are completely satisfied with the current situation. But for new investors the time won’t become an advantage, and the possibility of buying cryptocurrencies at a good price is slipping away. In addition to this, it forms a psychological barrier that influences the beginners‘ expectations for another price drop. But the history of cryptocurrency (which is already 11 years old, by the way) shows that every price correction comes to an end. And those who are still hoping to buy Bitcoin for $ 2000 have already lost their chance for good.
Another factor that can negatively affect the possibility to buy BTC is its independence from state authorities. On the one hand, it makes the asset attractive to the ordinary investor. On the other hand, the state of any country can find a way to anonymously buy all Bitcoins that are traded on exchanges in order to take it under control. Influential commercial organizations can do the same as they have all the necessary resources for this. In any case, if it happens, then you will have to play by someone’s rules and possibly even deanonymize your identity when buying BTC in the future.
You should also remember that despite the legalization of cryptocurrencies in some countries, there are still many countries that are looking towards a complete ban on digital currencies. For example, in Russia, they have been working on a bill on the regulation of digital assets that prohibits mining of cryptocurrencies and their circulation in the country already for many years. We don’t know how the adapted law will look in the end. Maybe it will not be published at all. In any case, buying Bitcoin “here and now” would be the right decision.
Let’s analyse all the reasons that may do it impossible for you to purchase Bitcoin.
Systematic price increase
Of course, many people may feel that they have already missed the moment with the $ 10,000 price for Bitcoin. But exactly the same feeling had those investors who did not decide to buy BTC earlier. For example, BTC was at a price of $ 74 in 2013 and it cost half as much only a couple of years ago before that (in 2011). Such thoughts have nothing to do with reality. In fact, only growth prospects really affect the price and the one who overcomes his fears won’t miss a good chance. Simba.Storage customers don’t have such fears since they store their Bitcoins with the expectation of a long-term perspective in complete safety.
If you still have doubts you can always turn to exact facts and forecasts of professionals whose business reputation has been proved over the years. According to forecasts of the Pantera Capital venture Bitcoin fund in August 2021, the price of Bitcoin will reach $ 100,000 and Global Macro Investor cites think of $ 1,000,000 for 1 BTC in subsequent years. Simba.Storage analytics are also confident in the significant growth of this main cryptocurrency. The list of companies and experts is much longer but let us turn to the facts if their opinions don’t convince you .
Since Bitcoin is a digital currency its emission depends on the computing power provided by mining individuals and organizations. This process is called mining, and those who mine BTC are called miners. Miners receive a fixed fee for solving one problem — generating new blocks in a chain of blocks (blockchain). As a certain number of blocks are mined, the reward for their mining becomes halved. This phenomenon is called halving and it takes place every four years on average. In its term, halving leads to mining reduction and lower emissions. As it is with any currency, a decrease in emissions leads to a deficit and a subsequent increase in value. The last halving of Bitcoin took place on the 11th of May in 2020, so it will be possible to observe an increase in its price in the nearest future regardless of whether you believe in it or not.
State is getting control over Bitcoin
The idea of Bitcoin is that it allows people to make transactions and gain access to various services without intermediaries freely, privately and safely. Bitcoin is not controlled by the government or the bank and does not require users to comply with any rules or disclose their personal data. Despite this, the government of any country can try to take over Bitcoin in the near future, noting the departure of the inhabitants of their country from fiat currencies to cryptocurrencies.
Governments of some states have enough resources for acting independently and without taking into account the opinion of citizens for the purchase of any number of Bitcoins available on the market. China is a good example for that. Gaining control of Bitcoin can definitely lead to difficulties in acquiring it for ordinary users. In the context of the global crisis (which is getting worse now) the probability of such actions from the government side is increasing.
Legislative bans
Many civilized countries see the use of cryptocurrencies as an advantage for the technology development and for the well-being of their citizens. They support projects on the blockchain for new opportunities in both financial and social sectors.
But there are also such states that see cryptocurrencies as a threat to the control of their influence. As a rule, such countries are not interested in the financial independence of the population. They are doing everything to prohibit the use of cryptocurrencies, criminalize their use or tax them. At the same time they usually have no relation to digital assets and to the cryptocurrency infrastructure improvement for the convenience of their citizens.
You shouldn’t expect any good legislative news if you live in Russia where the actions on digital assets or cryptocurrency mining are seen as illegal activities with criminal liability. Another example is the United States where you need to disclose your identity to acquire Bitcoins then declare them and pay taxes. It means that you need to buy Bitcoins as soon as possible before the government limits this opportunity. You can leave them for long-term storage and either wait for the laws to soften or freely use them in one of the technologically advanced countries in the future where the use of cryptocurrencies is always welcome.
That is why the management of Simba.Storage, sets one of its main tasks to take on all kinds of regulations for the implementation of its activities, as soon as possible and will already use the services of a self-formed team of lawyers who are engaged in the study of such issues and that is why the storage base is chosen Switzerland, which has always maintained political and military neutrality and remains an oasis of relative peace and tranquility even during world wars.
The Best Bitcoin Buying Strategy
Taking into account all the mentioned above circumstances, investing the most appropriate strategy when interacting with Bitcoin. Moreover, if there is a degree of uncertainty then you can buy the currency step by step and divide your funds into parts. In this case, you will be able to reduce risks and psychological stress from the fear having your investments at the side. During this time, your confidence in Bitcoin will grow as your investment will.
When you invest in Bitcoin you should plan it as a long-term investment. The cryptocurrency market is very volatile, therefore, the Simba.Storage team recommends that you buy it gradually and at different prices and keep it for a long time even if the price goes down. In order not to panic and not succumb to emotions with strong movements, you need to invest free funds and with the necessary margin of patience. It is also recommended to do this regularly, systematically both on the rise and on the fall. This systematic approach will allow you to get BTC in your portfolio which on average will always be purchased at a bargain price because ultimately its growth is inevitable.
After buying Bitcoins, you need to take care of their safe and secure storage because it won’t make you happy if your money which is growing in value will be stolen from the wallets of the cryptocurrency exchange on which you decide to store it. Your Bitcoins should be placed in specialized storages which aim to have the maximum protection degree for your cryptocurrency assets and not to increase profits due to commissions from your transactions. Moreover, experts at Simba.Storage also recommend diversifying your Bitcoins, entrusting the storage of several parts of your investments to different storages. You can evaluate the reliability of a particular storage by studying the storage method, the places in which it is carried out, the guarantees and additional functions.
For example, the Simba.Storage has client funds in cold wallets (the safest type of cryptocurrency wallets) in Switzerland and Liechtenstein — the countries known for their reliability and extremely positive attitude towards digital assets. The storage users are given SIMBA stablecoins as a guarantee that Bitcoins will always be possible to return. They are backed by BTC (1 SIMBA = 1 satoshi) and can be used for everyday payments and for exchange back to Bitcoins deposited. Simba.Storage customers have the ability to restore access to their funds if they lose their passwords, logins and other account information which is achieved through the KYC procedure (personal identification process). These storage services are of high standards and can be used to identify the reliability of storage facilities.
