Bitcoin emerged as a means of payment developed for the people by the people. However, history shows that any attempt at subverting or bypassing the established order inevitably results into the evolution of the innovation into the entity it was intended to replace or disrupt. The same process can be traced in social phenomena, such as the evolution of children into their parents despite any attempts at rebellion. Another fascinating example of such devolution can be found in the phenomenon of a revolution, for instance the French Revolution, which eventually saw the morphing of the new order into an amalgamation of the old under a new name.
An attempt at changing the established financial system was made with the development of Bitcoin, which was supposed to alter the way people interact in the financial plane. The ability to transact on a peer-to-peer basis was truly a revolutionary development, especially considering the underlying technical and philosophical characteristics of the blockchain, which entailed complete transparency, immutability of records and instant transaction processing. With such characteristics at their disposal, users had the opportunity to transact without the involvement of any intermediaries or the oversight of government or centralized authorities.
However, as history has shown, Bitcoin devolved into the very thing it was initially designed to replace. At present, Bitcoin is considered as one of the most coveted financial instruments, with its value having outstripped gold by several hundred percent, and even oil as a commodity. Such intrinsic value can be attributed to the speculative nature of Bitcoin as an asset, rather than its actual value and application in the real world. One has to admit that fiat funds find far more acceptance and application in the real world than Bitcoin or any other cryptocurrency, largely thanks to their established nature as accepted means of payments.
With such a development, and, importantly, its extreme volatility and high price that makes it restrictive for the vast majority of average users, Bitcoin has devolved from a means of payment for average people into an instrument of investing exclusively for the rich. The thought that one can buy Bitcoin cheap is more of a fantasy than reality, as users with a limited amount of capital will not be able to afford the asset at all, regardless of whether it is experiencing price highs or lows in a bull or bear market.
Such a deviation from the original philosophy inlaid into Bitcoin at inception by the enigmatic Satoshi Nakamoto has indeed dissuaded many crypto enthusiasts from using the asset, but it did little to shake the confidence of investors in the attractiveness of Bitcoin. The fact of the matter is that most people do not care about the philosophy of the blockchain and are attracted solely by its speculative nature that allows for profiteering on the projects released on its basis. This fact is what makes Bitcoin the king of cryptocurrencies and the most debated and controversial asset in financial history.
Users willing to buy some cryptocurrency to make entry into the Web3 space have to think well before doing so. The reasons for such caution reside in the following factors that are inherent to the cryptocurrency space as a whole:
- High risk of losses;
- Extremely high volatility;
- Impossibility to forecast exchange rates with high certainty;
- High entry threshold;
- High preliminary knowledge requirements;
- High requirements for technical knowledge.
With these factors in mind, users have to decide whether the opportunities they expect to find in cryptocurrency space will meet their expectations. In fact, the very first step to making entry into the space is finding a reliable and secure cryptocurrency exchange best suitable for the user’s personal purposes. In order to invest in Bitcoin, having a non-custodial wallet, and an exchange that accepts the integration and connection of such a wallet is vital, as that is an essential security measure that has become evident after the collapse of the FTX exchange.
In fact, there are many crypto exchanges on the market that can provide a very high degree of versatility and functionality, but none of them will provide prices lower than the market. All these exchanges operate on the basis of aggregated market data and provide exchange rates that are averaged for their respective region. To buy their first Bitcoins, users will therefore have to either come to terms with the averaged prices, or start looking for ways of registering on exchanges outside their geographic regions that can provide slightly lower prices for Bitcoin. Such an opportunity is available, but the fact is that the price difference will be minimal in the end. Considering the restrictive price of Bitcoin, the profit obtained for the hassle of registering on a foreign exchange for making the purchase will be negligible.
Another extremely important aspect to take into account to buy Bitcoin cheap is the decentralized exchange. Such exchanges do not have a centralized authority and therefore are largely free from regulation and the oversight of overseers. This, and the fact that decentralized exchanges allow users to purchase assets on an anonymous basis, make them idea for users who still adhere to the principles of decentralization. Most importantly, decentralized exchanges give users the opportunity to interact on a peer-to-peer basis, which opens up a very interesting opportunity.
Though it is unlikely that anyone will sell Bitcoin for cheap, there is always the chance that a P2P exchange order book will contain an order for the sale of Bitcoin at a price lower than the market, since the seller is in a hurry to obtain liquidity. Such opportunities are rare, but they are virtually the only way to buy Bitcoin cheap.
Bitcoin lost the status of a currency for the people the moment it was traded on an exchange and started gaining value as an investment. This factor makes it restrictive for users seeking to make investments in a large number of such assets, and essentially transfers it to the rank of instruments for corporations and institutional investors. However, those with cash to spend can make a small profit by monitoring the order books of decentralized exchanges for rare occasions of the sale of Bitcoin at prices slightly lower than the market. Users must be vigilant and swift, since such orders never remain open for long.