Bitcoin: Why It Is Still a Great Investment Despite Some Recent Downturn in the Price

By
Peter
Eberle,
President
&
Chief
Investment
Officer
—
Castle FundsCastle Funds”>


Castle
Funds

Digital
finance
is
a
relatively
new
and
ever-evolving
space,
and
within
this
space,
Bitcoin
remains
the
subject
of
many
predictions
and
speculation.
With
some
recently
noted
market
fluctuations,
many
have
wondered
if
Bitcoin
is
maintaining
its
position
as
a
wise
investment. 

While
the
cyclical
nature
of
the
markets
is
nothing
new,
Bitcoin’s
downturn
has
concerned
some
investors.
However,
many
savvy
investors
know
that
the
waxing
and
waning
of
the
markets
can
create
unique
opportunities
as
well,
such
as
an
accumulation
of
assets
and
market
corrections,
and
that
Bitcoin’s
enduring
qualities
allow
it
to
hold
value
in
a
market
that
is
constantly
in
flux. 

Here,
we
delve
into
what
will
happen
with
Bitcoin
in
2024
and
why
it’s
still
a
great
investment
option. 

Bitcoin
in
2024

Bitcoin
has
been
a
solid
player
in
digital
finance
since
its
debut
in
20092009″>

2009

as
the
first
cryptocurrency,
and
it
arguably
remains
the
most
well-known
to
this
day.
Its
15-year
history
has
been
a
study
of
the
digital
market’s
ups
and
downs.
After
leading
cryptocurrency
exchange
FTX
declared
bankruptcy
in
2022,
many
feared
Bitcoin
was
dead. 

Nevertheless,
Bitcoin
has
continued
to
maintain
its
position
as
a
power
player
in
the
cryptocurrency
space
throughout
2024.
For
instance,
in
March
of
this
year,
Bitcoin
set
a
new intraday trading recordnew intraday trading record”>

new
intraday
trading
record

as
it
broke
through
the
$69,000
level,
topping
out
at
$73,000
before
declining. 

However,
what
goes
up
must
often
come
down,
particularly
in
the
financial
sector.
On
August
5,
Bitcoin
was
trading
below
$50,000.

This
wild
fluctuation
in
value
may
have
given
some
investors
pause,
especially
as
the
fluctuations
were
accompanied
by
new
regulatory developmentsregulatory developments”>

regulatory
developments

and
broader
economic
uncertainty.
In
January
of
2024,
the
SEC
approved
eleven
new
spot Bitcoin ETFsspot Bitcoin ETFs”>

spot
Bitcoin
ETFs,
which
came
with
backing
from
financial
giants
such
as
Blackrock
and
increased
legitimacy
for
Bitcoin
as
a
whole.
While
the
excitement
surrounding
the
new
spot
Bitcoin
ETFs
led
to
a
boost
in
pricing,
the
excitement
seemed
to
quickly
wane,
and
prices
dropped. 

Bitcoin’s
performance
in
2024
has
been
primarily
defined
by
a
maturing
digital
market,
increased
regulation
by
global
financial
institutions,
and
the
expected
ups
and
downs
that
accompany
most
markets,
digital
or
traditional. 

Why
Bitcoin
is
still
a
good
bet

Despite
market
fluctuations,
there
are
still
numerous
reasons
to
consider
investing
in
Bitcoin.
One
of
its
most
attractive
features,
decentralization,
remains
intact. 

Unlike
traditional
currencies,
Bitcoin’s
peer-to-peer
network
is
largely
still
resistant
to
government
censorship
and
inflation.
The
structure
of
Bitcoin
transactions
ensures
security
and
transparency,
which
many
investors
consider
the
currency’s
most
positive
attribute. 

Bitcoin’s
finite
supply
is
also
appealing.
It
is
capped
at
21
million
coins,
using
scarcity
to
its
advantage.
Like
precious
metals
such
as
gold
or
silver,
Bitcoin
has
a
store
of
value
due
to
its
scarcity.
Although
demand
will
continue
to
climb,
its
availability
will
remain
static,
allowing
the
value
of
Bitcoin
to
rise.
As
more
institutions
adopt
Bitcoin
and
legitimize
its
use,
the
value
of
the
digital
currency
is
only
set
to
increase. 

Additionally,
Bitcoin
has
seen
increased adoptionincreased adoption”>

increased
adoption

by
several
well-known
companies
and
institutions,
such
as
Square
and
PayPal.
These
adoptions
lend
credibility
to
the
currency,
reinforcing
its
legitimacy
among
investors. 

Bitcoin’s
volatility
is
also
attractive
to
investors
concerned
about
the
risks
of
relying
on
a
very
small
number
of
stocks
(such
as
the
“Magnificent
Seven”
technology
companies)
to
provide
the
bulk
of
their
investment
returns. 

Inflation
has
caused
concern
in
recent
years
as
it
has
reached
record highs.record highs.”>

record
highs.

Despite
price
fluctuations,
Bitcoin
remains
a
hedge against inflationhedge against inflation”>

hedge
against
inflation

—
so
much
so
that
many
have
called
it
“digital
gold.”
Many
have
turned
to
Bitcoin
investment
to
protect
their
wealth
amid
uncertain
economic
times. 

Finally,
the
increased
regulations
associated
with
the
new
spot
Bitcoin
ETFs
have
given
investors
a
perception
of
increased
security
in
the
digital
investment
environment.
As
governments
and
financial
institutions
continue
to
create
better
frameworks
around
cryptocurrency,
the
risk
of
fraud
and
market
manipulation
goes
down. 

Bitcoin
carries
many
unique
characteristics
that
make
it
a
safe
bet.
The
decentralized,
secure
nature
of
the
digital
currency
continues
to
make
it
appealing
for
investors
seeking
non-traditional
investment
options.
Markets,
both
digital
and
traditional,
will
continue
to
fluctuate
—
it
is
the
nature
of
the
investment
landscape. 

As
more
people
turn
to
Bitcoin
as
an
investment
option,
the
fluctuations
in
price
will
simply
be
considered
par
for
the
financial
course.
The
future
of
Bitcoin
investing
remains
bright,
with
continued
opportunities
for
people
who
are
looking
for
investment
options
with
almost
limitless
potential
and
resilience.

–
Peter EberlePeter Eberle”>


Peter
Eberle,
President
and
CIO
of
Castle Funds Castle Funds”>


Castle
Funds.
Castle
Funds
is
an
investment
firm
that
has
been
managing
funds
invested
in
Bitcoin
and
other
digital
currencies
since
2017.
Castle
Funds
offers
secure,
liquid,
and
low-cost
access
to
Bitcoin
and
other
digital
currencies.
They
manage
active
portfolios
across
spot,
futures,
and
options
markets.
Castle
Funds
also
develops
their
own
software
systems
that
handle
all
aspects
of
their
fund
operations.