Is It Too Late To Invest In Bitcoin?

Imagine you would have decided to invest in Bitcoin for $1,000 a piece in early 2017. By the end of that year, you would have made approximately $20,000 profit by selling 1 BTC. However, if you had waited a year more, your ROI would have been only around $2,500.

The 2017 Bitcoin bubble saw many one-time investors exit the crypto market. They were those who started selling when the BTC price began to plummet. On the other hand, those who “hodled” licked their wounds and learned some valuable lessons.

Fast forward to the present day, and Bitcoin is topping the charts at $60,000 apiece. Furthermore, in October 2021, it reached as high as $67,000. Now, for those who didn’t buy BTC for $1,000 four years ago, entering the market today may seem overwhelming. But is it too late to invest in Bitcoin?

Why Should You Invest in Bitcoin?

Bitcoin is the first and most popular cryptocurrency, which refers to virtual currencies featuring a digital representation of value. These virtual currencies are cryptographic assets operating on peer-to-peer networks, which you may know as blockchains.

Bitcoin is the oldest and most reputable cryptocurrency. It surfaced back in 2008 from the anonymous Satoshi Nakamoto. Other cryptos operating on similar networks, such as Tether and Ethereum, shortly followed it into existence. However, to this day, they fail to match Bitcoin’s popularity and, therefore, value.

Due to its highly volatile nature, many crypto enthusiasts use Bitcoin as a store of value. They also prefer using it as a means of payment since its transactions are faster and more secure.

So Is It Too Late to Invest in Bitcoin Now?

If might think that the Bitcoin ship has already sailed. Also, you may regret not investing in it when its price was accessible. Nevertheless, you should know that in the crypto market, late it’s better than never. Here’s why!

Timing

Everyone wishes they could go back to 2010 to buy millions of BTC for only a few dollars. When looking back, Bitcoin’s price evolution seems incredible. After all, its value has gone from a mere few cents to over $60,000 in just a few years.

Bitcoin has a market cap of $1 trillion, making it the 10th most valuable asset globally. It is worth mentioning that gold is worth $10T, Apple $1.2T, and Google $1.2T. But, Bitcoin has risen up the ranks a lot faster than most of these entries.

So, have you missed the Bitcoin boat?

Well, it depends on several factors. For instance, we cannot predict its future. So, it is difficult to tell if it has reached its all-time highest value yet. Also, more investors are entering the Bitcoin market every day. So, as more money is pouring in, its value can only increase. Conversely, we don’t know if these investors are in it for a quick ROI or for the long-term. After all, they could all jump ship if the BTC price plummets again.

Supply and demand

The maximum supply of Bitcoin is 21 million units. This means there will be no more BTC once they reach this amount. Currently, 18 million BTC are in circulation, leaving only 3 million left to surface through mining. So, what does this mean for investors?

Soon, the price will shoot further through the roof then it already has.

Now, only a few institutional investors, including Tesla, and PayPal, have invested in Bitcoin. However, many more are monitoring this space closely and ready to jump in at any time. When Amazon, Apple, Google, and many others jump on the Bitcoin bandwagon, the number of available BTC may be scarce. As a result, governments, hedge funds, national estates, and international conglomerates will fight over the remaining assets.

The limited supply of these crypto-assets results in their high demand. Today, Bitcoin is hard to find, mine, store, transport, and impossible to counterfeit. Also, it is a deflationary currency as it has no external regulatory bodies. To this end, Bitcoin will maintain its value for a long time to come, unlike the US currency.

Blockchain

Thanks to its blockchain protocol, Bitcoin has an immutable nature. This means that the data available on the Bitcoin blockchain can never change. Nor governments or hackers can destroy its structure or alter its evolution.

Bitcoin is the most secure way of recording transactions ever in existence. Not only is it in use for finance, but decentralized apps and smart contracts are also using it. That’s how they revolutionize various industries like supply chain, property, notary, and health. When this occurs, Bitcoin and other cryptos will increase in value due to network effects.

FIAT Money

Fiat money refers to currencies governments control and manage, such as the Euro, Yen, or the US Dollar. This type of currency is susceptible to inflation. Also, as the central government keeps printing out money, its value continues to diminish.

Some believe that the inflation rate of such currencies in the next ten years will be approximately 10% a year. Instead of dealing with such inflation, why not choose a deflationary currency like gold, silver, or even invest in Bitcoin? Making such investments prevents your money from wasting away with time.

Crackdown by governments

It is no secret that many governments worldwide do not embrace crypto. For instance, the Chinese government cracked down on the trading and mining of bitcoin in late May. This event caused the BTC prices to plummet.

However, Boris Schlossberg, managing director at BK Asset Management, claims that the crackdown was to help their upcoming digital currency. If other governments follow the same direction, then the future of Bitcoin and other cryptos could be uncertain.

Conclusion – Is It too Late to Invest in Bitcoin?

Gold is a long-term investment that has been in use for years. However, many investors question its ROI due to its limited utility. Since its launch, Bitcoin has grown in utility and value. Furthermore, it is a virtual currency that should soon value more than anything.

Likewise, the adoption of Bitcoin and other crypto is inevitable. For instance, investors will soon earn significant profits, thanks to its volatility, deflationary nature, and liquidity. So, if you still want to squeeze some money out of the Bitcoin hype, you should consider creating an investment plan and sticking to it.