The cryptocurrency market is currently experiencing one of the most difficult times in recent years. Falling prices for major cryptocurrencies have caused a lot of intrigue among investors at various levels, and various market analysts say that we have officially entered the winter of the cryptocurrency market with other problems.
In the midst of such chaos, and when investors have more questions than answers, the president of El Salvador sent a message that may seem a little strange. On June 20, the president touched on the issue of bitcoin and its investment, and commented that he was watching how some people are now too worried or concerned about the price of bitcoin, which is the lowest in 100 years.
Faced with this situation, the President advised all investors to stop looking at charts and enjoy life. In this regard, he argues that if someone has invested in bitcoin, his investment is completely safe. He further comments that the price of the market-leading cryptocurrency will rise after the bear market.
For President El Salvador, patience is key, so he said those who have invested in cryptocurrencies in the past should not worry. The problem is that the losses have been quite large, and many market analysts do not consider investing in bitcoins as safe as the President of El Salvador claims.
In addition, such statements can be quite harmful, and although it is a way to reassure investors, they do not give them a real idea of what is happening in the market. The fact is that the market is going through hard times, and although there is always the possibility of growth, it is unclear whether and when this will actually happen.
Is it safe to invest in bitcoin?
If you ask the President of El Salvador, he will assure you that investing in bitcoins is completely safe. This is not surprising, because it already has a history with cryptocurrencies and especially with bitcoins. It will be recalled that last year he passed a law that made bitcoin a legal tender.
Public opinion did not agree then, but despite this, the president did not stop and the law came into force. After law enforcement began, the price of bitcoin rose and reached a new high almost at the end of the year. At that time, it seemed that everything was going well until 2022.
From the first minutes of 2022, the price of bitcoin and other cryptocurrencies began to fall, which was a clear sign of what was to come. Today, in the middle of 2022, we can realize that autumn has been quite severe and winter has officially come to market.
Arguing that investing in bitcoin is a “safe bet” can be quite dangerous, especially considering that it is an investment in which you can lose a lot of money, but very little time. For some, what El Salvador’s president has done is a strategy to calm the waters, but in reality he cannot guarantee that investing in bitcoin is safe, as it provides stability, profits and protection, and if we see how much El Salvador and its investors have lost, we do not realize that there has been a lot of instability, loss and lack of protection for the investor.
Will bitcoin recover?
There is always the possibility of bitcoin recovery. Whether it is the hope of investors or the inevitable fluctuations. The fact is that the president of El Salvador has said that bitcoin will grow after the bear market. We do not yet know how long this bear market will last. Thus, the losses can be much greater, which undoubtedly harms investors at all levels, but especially small investors.
It is now risky to guarantee that the value of bitcoin will rise, because in fact no one can predict with certainty what will happen to the value of cryptocurrencies, let alone bitcoin, which is the most important and the one that shows the most fluctuations. The president is right that patience is important in the market, but his approach to speech is somewhat distorted.
It is unclear what will happen to cryptocurrencies, but there is still hope for recovery. But for now, the chances of falling are higher.
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