Has Bitcoin Become Too Expensive For Retail Investors?

Bitcoin or Cryptocurrencies are giving an impressive performance in the Crypto market. By the second week of 2021, the price value of Bitcoin has crossed $40,000. Experts are also predicting that 2021 will be the year for Bitcoin.

While many big institutions are investing in Bitcoins, retail investors are finding it tough to invest in the Bitcoin market. A question circulation in the market. Has Bitcoin become too expensive for retail investors?

Who Are Retail Investors?

Well, maybe the term ‘retail investor’ is new to most of you. But have you heard of individual investors who do not have any organizational or institutional backup for investments? Yes, they are called retail investors. They are the non-professional investors who buy and sell funds or securities, such as exchange-traded funds or ETFs, and mutual funds.

Has Bitcoin Become Too Expensive For Retail investors?

If you need a direct single word answer for this very question, then the answer is “YES.” with the increasing value price of Bitcoins, individual or retail investors are finding it hard to invest in Bitcoin. With the rising price value of Bitcoin, the trading value has also increased to a massive.

The “average Joe” is not running the show anymore.

In 2017, the primary market of Bitcoin bull run was primarily run by these retail investors. They used to place speculative bets on the developing Bitcoin market along with other smaller capital Cryptocurrencies.

During that time, millions of retail or individual investors from China, Japan, and South Korea became the backbone of this Bitcoin market.

Why Are Retail Investors Finding It Difficult To Invest In Bitcoins?

With the increasing price of Bitcoin, more institutional investors are getting attracted to it. And the trading value is also automatically increasing. To know more details, you can visit to Read here.

The sudden rise has taken the Bitcoin trading value from $1,000 to $7,200 in just 3 years. In the year 2017, when bitcoin experienced the first surge, the trading value of Bitcoin was around $1,000, which was pretty much affordable by the retail or individual investors.

But the Bitcoin price value rising also increased the trade value and ended up making it $7,200. So, the retail investors are backing their steps.

Many retail investors also do not have any idea that they do not need to buy an entire Bitcoin. So, a lack of proper knowledge is also playing a huge role here.

In addition to the two earlier mentioned reasons, there is another vital one. The coronavirus has broken down our economic system. Unemployment is one of the crucial things that we are dealing with. In these economically tight conditions, retail investors may be unable to put aside their budget for investment.

The overall Bitcoin market is now more mature than it was in 2017. As they say, time changes. It has been noticed that those institutional investors who have a lot of doubt or were against the Bitcoin or Cryptocurrency concept are now investing in Bitcoin.

Let’s take an example. We have all heard of PayPal. The former CEO of PayPal, Bill Harris, stated in 2018 that bitcoin did not have any value, and it was heading to zero. He had also labeled Bitcoin as a scam.

Last October, Paypal announced that it would support Cryptocurrency transactions. Now buying, selling, sending, and even holding Bitcoins are possible with PayPal. Some other examples are Hathaway’s Warren Buffett, Paul Tudor Jones, Stanley Druckenmiller, Wall Street firms. They all had negative thoughts about bitcoins previously. But now, they all are welcoming the investment in Cryptocurrency or Bitcoins.

Final Verdict

Though the price value of Bitcoin is rising, it is becoming challenging for retail investors to invest in Bitcoins. Due to the high trading value, lack of proper knowledge, institutional approaches, retail investors are backing off from investing in Bitcoins.