Is It Too Late To Buy Bitcoin?
“Is it too late to buy Bitcoin?” This is a question many are asking with more and more stories in the news about it. The price of Bitcoin has skyrocketed this year from $800 to over $7,000.
This price increase has generated new interest in the world’s first cryptocurrency. Banks, hedge funds and average investors are beginning to see Bitcoin and other digital assets as serious investments.
That being said, many of these investors are hesitant to buy into a market that has seen such explosive growth. Is Bitcoin in a bubble? Are we about to see a major market crash? Is it too late to buy Bitcoin?
Is it too late to buy Bitcoin?
Before we can answer that question, we first need to understand why people are asking it in the first place. When Bitcoin was released to the world in 2009, a single Bitcoin was worth pennies. That same Bitcoin today is worth nearly $7,000. Bitcoin has risen over 500% against the dollar this year alone. This insane growth rate is what has people nervous about a bubble in Bitcoin.
Over those eight years, Bitcoin has experienced massive volatility, scandal, price crashes and bad publicity. Bitcoin has been pronounced “dead” by pundits and analysts at least a dozen times. Despite all of this, Bitcoin didn’t “die”. In fact, Bitcoin has operated uninterrupted for eight years, not succumbing to a single hack.
During those formative years there were also conversations about a Bitcoin bubble. It was historic when Bitcoin hit $1,000 and soon overtook the price of gold. Nearly every major price threshold since, stoked fears of a bubble, all while the price continued to rise. On the way up there were investors saying “I wish I had bought Bitcoin at $10, $100, $1000 etc…”. So if we weren’t in a bubble then, are we in one now?
When attempting to analyze Bitcoin there are a few things investors should consider. First, this market is still new, thinly traded and largely unprecedented. As a result, it can be very difficult to perform historical analysis, technical analysis or make accurate price projections.
Second, make no mistake Bitcoin is a direct challenger to national currencies and banks. There is an incentive for financial institutions to down play Bitcoin and steer would be investors away from the decentralized digital currency.
Short answer: Probably not
Bitcoin, more specifically the blockchain technology that it is built upon, is the greatest technological advancement since the internet. Bitcoin’s creation opened the gates for a flood of innovation.
There are thousands of companies working on creative new ways to integrate blockchain into current industry as well as form new industries. In order for investors to become involved with these companies, they need to enter the world of cryptocurrency.
Bitcoin remains the cryptocurrency with the most widespread name recognition. I would argue that a portion of Bitcoin’s price increase is as a result of interest in a much larger tech industry that is taking shape.
Diffusion of innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread. This new industry is just now preparing to move from the innovator stage to early adopter stage. That would mean we haven’t even begun to see “high” prices. In fact, if this hypothesis is correct we could very easily see a tripling of cryptocurrency prices in the not too distant future.
In truth, most people have yet to hear about Bitcoin let alone other cryptocurrency. Imagine when the masses begin to invest in the sector. Bitcoin which has a finite supply of 21 million tokens could potentially experience dramatic price increases and volatility.
This does not mean that Bitcoin is the only way to take advantage of the rise of blockchain technology. There are many other digital tokens such as Ethereum, Litecoin, DASH etc, that will benefit.
Many of the blockchain companies forming right now and issuing tokens will fail, however some will succeed, growing into the next Facebook, Apple or Amazon. Diversifying into reputable, and compelling projects by purchasing alt-coins with your Bitcoin gains may prove to be a successful strategy.
Conclusion: Is It Too Late To Buy Bitcoin
The price of Bitcoin could crash or Bitcoin could fail, but if history is any guide it will survive. No one can say for sure what the future holds for Bitcoin. However,even if Bitcoin did go the way of records and telephone booths, the wider cryptocurrency industry will grow and thrive.
We are still in the early stages of this market and huge opportunity exists as we transition from the innovator to the early adopter stage.
If you were asking is it too late to buy Bitcoin at $1,000,$5,000 or $6,000 what will you say when Bitcoin hits $10,000?
Want to get your first Bitcoin?