Can experts predictions benefit Bitcoin investors?

Experts have been a great resource when it comes to investment decisions. For most traditional asset classes like stocks and bonds, you can benefit from following expert predictions as an investor. But can expert predictions help Bitcoin investors? Before I can answer, let me explain why Bitcoin is a unique asset class. For example, the popular Bitcoin trading platform Immediate Edge offers expert opinions and insights into trading Bitcoin.

Bitcoin as a Unique Asset Class

Bitcoin is a recent invention that has hit the world with a storm. With only about 13 years since its launch, Bitcoin is now a global phenomenon with over 109 million users. Bitcoin is a digital currency and asset. It is decentralized and unregulated, making it a unique type of asset.

Bitcoin is unique because the government, the stock exchange, or any single entity controls it. With stock, a company can decide to issue an IPO whenever it wishes. With government bonds, the government is in control. No one has such power over Bitcoin. You can buy, sell, hold, and use Bitcoin as you wish without any restrictions. 

Bitcoin is also a high-risk asset category. With no government regulation or control, investors are basically on their own. The price of Bitcoin is also highly volatile. The risk can also be very high, even with Bitcoin’s freedom as an investment option.

Role of Crypto Experts

Experts are entities that act as information resources because of their training, education, or experience. Crypto experts have a deeper understanding of the crypto market and use this to provide essential tips and insights to investors.

Crypto experts can also help with predictions. Having the correct predictions can be a great advantage in any investment market. In the highly unpredictable Bitcoin market, crypto experts can help investors in this regard. And this is particularly true for less experienced Bitcoin investors or those just starting.

To understand the role of crypto experts, we should look at the uniqueness of the crypto market and the Bitcoin market in particular. Cryptocurrencies like Bitcoin are still new and emerging asset categories. Despite the growing interest and user base over the last decade, we cannot say that many investors understand it like traditional assets.

Crypto Crashes like the recent one that started towards the end of last year often find many Bitcoin investors by surprise. Bitcoin’s price plummeted from a high of over $65,000 in November 2021 to less than $20,000 in just a few months. And this shocked the Bitcoin investors because Bitcoin is still a very unpredictable and less-understood asset.

While most investors lack a good understanding of Bitcoin and the broader crypto market, crypto experts have an advantage because they have been following this emerging asset category and the crypto market for a long time and are keener. Some are investors too, and have real experience dealing with the Bitcoin market.

Can Expert Predictions Benefit Investors?

Yes. Crypto expert predictions can help Bitcoin investors in making better investment decisions. Bitcoin investors can rely on expert predictions to know when to buy or sell their Bitcoin. They can also use expert predictions to lay out their future investment plans, such as whether to invest short-term or long-term.

A recent study to examine whether Bitcoin investors can benefit from the crypto experts’ predictions provides positive findings. Based on the study’s findings, the researchers concluded that crypto experts are useful information intermediaries from which Bitcoin investors can benefit.

But also be cautious as a Bitcoin investor when relying on expert predictions. Not every expert prediction will turn out to be true. Moreover, there is no basis for determining or ascertaining who qualifies as a crypto expert. Therefore, Bitcoin investors should be very cautious when using expert predictions.

Take Away

Bitcoin investors can benefit from expert predictions on market trends and dynamics. However, it is important to remain cautious, even relying on such specialist predictions.