Now the cryptocurrency market is going through one of the most difficult periods in recent years. The fall in the prices of major cryptocurrencies caused a lot of intrigue among investors of various levels, and various market analysts assured that we had officially entered the winter of the cryptocurrency market, accompanied by other problems.
In the midst of such chaos, and with investors having more questions than answers, El Salvador’s president has sent a message that may seem a little odd. On June 20, the president addressed the topic of bitcoin and its investments and noted that he is watching some people get too worried or worried about the price of bitcoin right now, which is the lowest it has been in over 100 years a year.
Faced with this situation, the President advised all investors to stop looking at charts and enjoy life. In this regard, he claims that if someone has invested in bitcoin, then his investment is completely safe. He further comments that the price of the market-leading cryptocurrency will rise after a bear market.
For the President of El Salvador, patience is key, which is why he said those who have invested in cryptocurrencies in the past have nothing to worry about. The problem is that the losses were quite large and many market analysts do not consider investing in bitcoins as safe as the President of El Salvador claims.
Also, statements like this can be quite damaging, and while it’s a way to reassure investors, it doesn’t give them a real sense of what’s going on in the market. It is a fact that the market is going through hard times and while the opportunity for growth is always present, it is not clear if this will actually happen and when.
Is it really safe to invest in bitcoin?
If you ask the President of El Salvador, he will assure you that investing in bitcoin is completely safe. This is not surprising because he already has some history with cryptocurrencies and especially with bitcoin. Recall that last year he passed a law that made bitcoin legal tender.
Then public opinion did not agree, but despite this, the president did not stop and the law came into force. After the start of law enforcement, the price of bitcoin rose and reached a new high almost at the end of the year. At the time, everything seemed to be going pretty well until 2022 rolled around.
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 harsh and winter has officially entered the market.
Claiming that investing in bitcoin is a “safe bet” can be quite dangerous, especially when you consider that it is an investment where you can lose a large amount of money in very little time. For some, what the president of El Salvador has done is a strategy to try to calm the waters, but in fact he cannot guarantee the safety of investing in bitcoin because it offers stability, profit and protection, and if we see how El Salvador and its investors have lost, we do not understand that there was a lot of instability, losses and lack of protection for the investor.
Will Bitcoin recover?
The possibility of bitcoin recovery is always present. Whether it is the hope of investors or the inevitable fluctuations. The fact is that the president of El Salvador said that bitcoin will rise after the bear market. We don’t know yet how long this bear market will last. Thus, losses can be much greater, which clearly disadvantages investors of all levels, but especially small investors.
Now, guaranteeing that the value of bitcoin will rise is quite risky, because in reality, no one has the ability to predict with certainty what will happen to the value of cryptocurrencies, let alone bitcoin, which is the most important and the one that shows signs of the most volatility. The President is somewhat right that patience is important in the market, but his approach to speech is somewhat distorted.
At the moment, it is unclear what will happen to cryptocurrencies, but there is still hope for a recovery. But while the chances of falling more.
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