Is it too Late to Invest in Bitcoin?

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Author: Mr. KingsHOK
An accountant who turned cryptopreneur to pursue my interest in crypto and decentralized finance. Let me show you how to invest safely in the space with my experience over the years.

No it’s never late to invest in cryptocurrencies. Now is also the right time to start investing in Bitcoin.

I found out about Bitcoin in late 2016 by chance and, like many people, didn’t fully understand it for a long time.

By then Bitcoin was already at hundreds of dollars and it seemed, surely, that I must have been too late to the party.

I remember sulking about the fact that was having to pay around ten times more than I would have done had I really made the effort to buy it as I’d wanted to back in the day.

But at that time, buying Bitcoin was not easy and I was terrified of being scammed.

To others from the outside, it seems I got it just right, but I know the real truth: I just finally got round to working out how to do it.

And yet that question comes up, in one form or another, constantly. It’s as inevitable as your hairdresser asking if you’re going on holiday this year when you lower yourself into the chair.

Best Bitcoin Wallet

If you’re purely buying Bitcoin as an investment (i.e. you’re not interested in spending it or converting to other currencies), then your timing is still very excellent.

Some NAY-Sayers have speculated in the past that Bitcoin cryptocurrency is just a rapidly growing bubble, waiting to burst open for huge losses, but unfortunately, I don’t think that’s what is going on now.

Bitcoin may be a dinosaur in terms of technology and age (i.e. 11-Year Oldie), but it is also the undisputed ‘reserve currency’ of the crypto world.

It’s your ‘go-to’ universally accepted and recognized coin that anyone dealing in cryptos is happy to take. As far as cryptos go, it’s a ‘safe’ bet. But this is also where it gets interesting.

I am always loathe to include exact figures on how many people use Bitcoin/are aware of Bitcoin/own Bitcoin etc because surveys are not always reliable and blockchain data, although entirely dependable, needs context to be deciphered correctly.

The only area that they all agree on completely is that, although it is steadily and consistently growing, only a tiny percentage of the global population is actually using it as of this moment.

The fact is that any application of the network effect will drive the price disproportionately high and disproportionately quickly, which is where these crazy price predictions you sometimes read about in the press come from.

It’s not an unreasonable assumption in many ways, especially when you consider the simple mathematics of the matter.

There’s not even enough Bitcoin for every millionaire on the planet to have one, so they’ll be dealing in Satoshi too.

Only the extremely wealthy or the very early adopters who are still holding will have more than one.

Once you apply the basic economic theory of supply and demand, the price can only go up.

This is all theory, of course, based on a perfect world with reasonable adoption, say at least 10% of the global population, and a clear regulatory framework, among other factors.

And whilst it’s almost certain now we’ll be using some form of cryptocurrency in the future as the natural next step in our increasingly digital world, we don’t know yet if it will be sovereign (eg Crypto-Dollar), corporate (Libra) or Decentralized (Bitcoin).

Is Bitcoin dead as a currency?

Bitcoin Bubble

Bitcoin has first-mover advantage, should an entire economy stop dragging its feet and get active in developing its own currency, or, by some miracle, Libra manages to obtain global regulatory authority, then Bitcoin will be on the canvas.

And, of course, even in the extremely unlikely event that all countries in the world came together to try and regulate Bitcoin out of existence, you would only need one to disagree and it’ll never be possible.

Is Bitcoin worth it currently?

Short Bitcoin

In one year Bitcoin grew in value over 28 times before dropping 60% in price, this event has sparked a lot of discussion about whether the market is in a bubble or not.

To figure out if his cryptocurrency is a bubble that is waiting to burst someday in future, we need to take a look into the its history a bit…

The 2011 Bitcoin Bubble

Bitcoin started off 2011 with a 30 cent price tag ($0.30), it grew to a dollar around February before soaring to $10 in June, then tripling to $30 in less than a week.

The “bubble” burst a few days later on June 11th bringing the price down to $15 (a 50% drop, sound familiar?), Bitcoin rose again to $20 before dropping down to $5. This is currently Bitcoin’s biggest “bubble”.

Growth: Over 100x, higher than the 2017 “Bubble”

The 2013 Bitcoin Bubble

Bitcoin started the year at around $15 and reached $50 by the middle of March, by April one Bitcoin was worth $100 and in less than two weeks it’s price doubled making one Bitcoin worth about $230.

The very next day the price dropped to $160, then to $70 a week later before rising back to $100 by the end of April.

Growth: Over 17x, 60% the size of the 2017 “bubble”

The Second 2013 Bitcoin Bubble

After stabilizing at $100, Bitcoin rose to $250 in November and within one month the price more than quadrupled reaching $1,100.

That is over 4 times growth in less than a month.

Again the “bubble” burst and Bitcoin dropped to $700.

Growth: 11x, 39% the size of the 2017 “bubble”

The 2017 Bitcoin Bubble

The “bubble” everyone is talking about, Bitcoin started the year at $900 and ended the year at $20,000 before dropping to $15,000 and then $8,000 in 2018.

Growth: 28x or 2,800% growth, Bitcoins second largest “bubble”

Is it too late to invest in Bitcoin?

Cuoc Chien Giua Bitcoin Va Altcoin

The reason why the media is going crazy about Bitcoin “being in a bubble” is mainly due to its high price tag, which a lot of crypto project these days has more value than BTC.

Nobody cared in 2011 when the price of one Bitcoin tripled in less than 7 days, but in 2017 it took Bitcoin four months to double in that value – from $2,000 to $4,000 and this was actually when the Bitcoin mania began.

If Bitcoin was ever in a bubble, it has already been popped numerous times, I think people are confusing media hype combined with a high price for being in a bubble.

I believe people are focusing on the wrong numbers, instead of paying attention to the price, we should be paying attention to the rate of growth.

So is Bitcoin safe?

Less than 0.3% of the worlds population owns Bitcoin, while the Blockchain technology is gaining worldwide interest with universities offering courses on the subject, and big companies researching the technology.

Another thing to note is that, compared to Bitcoin’s massive growth, the price reductions simply pale in comparison, especially if you look at the percentages instead of the price.

For example, in 2017 Bitcoin grew 28 times or 2,800% and dropped only 60% by 2018. If you bought in early you are still in a lot of profit.

I understand that when investing in Bitcoin, the price is the first thing that people will notice, but when it comes to investing, price is not the only metric you should use to judge an assets growth.

You need to look at the percentage gains as well as the time periods during which the highs and lows occur.

Is Bitcoin worth it until now?

Yes of course… Bitcoin is still worthy of being a great investment!

Bitcoin has risen and fallen many times during it’s time, it is even expected by some investors now, last year we saw Bitcoin grow from $900 to $20,000 and now the price hovers at around $6,000.

If you got in before Bitcoin was worth $6,000 then this is not too bad, however I believe we will always hit a price floor and from there the only way is still upwards.

It is not too late to me for investing in Bitcoin, because I am very much confident that we are not in any kind of real investment bubble.