The amazing Bitcoin's Bull Run continues in 2021. El Salvador has also become the first country to make Bitcoin a legal tender. That means Salvadorans can use Bitcoin alongside traditional currencies like the US dollar as their official payment method. What's more, the number of people using Bitcoin to complete international or cross-border payments increases by the day. Such developments have prompted many people to wonder whether this is the time to invest in this virtual currency.

Bitcoin Ups and Downs

Many fans hailed Bitcoin as a liberation that would disrupt the global market. However, some financial experts demonized it as a risky creation. But the fact is that Bitcoin is a volatile digital asset. Since the end of the year 2020, this virtual currency has gone through several ups and downs.

For instance, its price hit the $20,000 mark in December 2020. By January 2021, the value of this virtual currency was above $34,000. After Tesla bought bitcoins worth $1.5 billion, its value rose to $48,000 on 9th February. By the 21st of the same month, Bitcoin price hit the $58,354 mark before falling to $44,845.72 on 23rd February. As of 13th March, Bitcoin price had increased to a record high of $61,701. By 13th April, Bitcoin price rose further to $63,375 before dropping to $55,000 on 18th April. As of 7th June, Bitcoin priced had fallen to almost $37,000.

Will Bitcoin Price Increase Again?

Bitcoin is undoubtedly a volatile digital asset. And this is something everybody should have in mind when investing in this virtual currency. But the extreme volatility of this cryptocurrency is, perhaps, the defining factor of its market.

While other virtual currencies experience the same swings, their falls are not as sharp as Bitcoin's. However, that's because Bitcoin is the pioneer cryptocurrency. Today, Bitcoin is the main asset that most people trade on platforms like Bitcoin Evolution. Perhaps, that's because most people see the potential of this digital asset becoming a legal tender in more countries.

Why This Might Be the Time to Invest in Bitcoin

Although Bitcoin has experienced a bumpy ride, its trajectory has remained up since late 2020. Essentially, this virtual currency has made significant and steady gains over the recent months. And this explains why now could be the time to invest in Bitcoin. If uncertain whether you should acquire this digital asset, here are reasons to convince you.

• More investors are purchasing Bitcoin and holding onto it.
• US customers can buy and sell Bitcoin using the PayPal app.
• Morgan Stanley is among the financial institutions allowing wealthier clients limited access to its Bitcoin funds
• Tesla has pledged to start taking Bitcoin payments from customers that purchase its vehicles
• El Salvador has made Bitcoin a legal tender, meaning more Salvadorians can now use this virtual currency to pay for services and goods.

These developments mean that the adoption and acceptance of this virtual currency will keep increasing. And this should convince you to invest in Bitcoin, especially if you believe in the technology behind it.

Can Investing in Bitcoin Make You a Rich Person?

Many people have made good money from their Bitcoin investments. However, investing in Bitcoin is not a venture for the faint-hearted. Price fluctuations make Bitcoin a high-risk investment. So, before rushing to invest in Bitcoin to become a rich person, here's what you need to know.

• You can lose your entire Bitcoin investment
• Bitcoin is a highly volatile digital asset
• There many unknowns about Bitcoin
• Some platforms are scams purporting to be Bitcoin investments

Summary

The continued increase in Bitcoin price, adoption as a legal tender by El Salvador, and acceptance by more merchants mean now could be the time to invest in this digital asset. However, proceed cautiously due to the volatility of this virtual currency and scams that could lead to significant losses.