Bitcoin is a cryptocurrency that has been around for a few years now, having been launched in 2009. For years, it struggled to take off, and even when it eventually did many people struggled to take it seriously and simply dismissed it as a passing fad.
However, Bitcoin and other cryptocurrencies soared in value, and despite a few wobbles have largely remained stubbornly buoyant for years beyond what many expected. So, you might be considering an investment in bitcoin.
After all, more and more people, including plenty of serious investors, have been moving into Bitcoin in recent years. But you might be wondering: have I missed the boat?
The answer, to put it simply, is no. It’s not too late to invest in Bitcoin. In this article, we’ll tell you why. But first- why Bitcoin in the first place?
The obvious reason to invest in bitcoin is its huge, almost unparalleled potential for value growth. Bitcoin, like other cryptocurrencies, is subject to wild swings in value, including absolutely jaw-dropping increases in value that you simply don’t get from other investments.
For example, it’s not at all uncommon for the value of a bitcoin to increase by hundreds or even thousands of dollars in incredibly short spaces of time- months, weeks, even days.
Between September 29th and October 20th, 2021, for example, the price of bitcoin shot up from roughly $41,000 to nearly $66,000. That’s an increase of over $25,000 in just three weeks!
Many experts predict that Bitcoin will someday hit $100,000 as it becomes more and more integrated into the mainstream economy.
Of course, like other cryptocurrencies, Bitcoin is also subject to some pretty wild depreciation in value, too. If that concerns you and you’re still looking to get into crypto, Bitcoin is your best bet.
Bitcoin, being the original and therefore most established cryptocurrency, is the most stable out there. As it becomes more integrated into the mainstream, Bitcoin should only become more and more stable.
Although volatile, Bitcoin is in fact an extremely secure investment. Stored in a digital ‘wallet’, the blockchain technology it uses makes it virtually impossible for a hacker to steal your coins.
Is Crypto Right For You?
Although investing in cryptocurrency can be extremely profitable, it’s certainly not for everyone. One simple fact remains, and that is that cryptocurrencies are some of the riskiest investments that you can make.
It’s completely speculative (see also ‘What Are Speculative Stocks?‘)- though many proponents of cryptocurrency proclaim it to be the future, that’s not known for certain.
Although the most established, most valuable coins like Bitcoin and Ethereum are increasingly becoming integrated and gaining more and more real-world value, cryptocurrencies may never fully integrate.
Bitcoin and Ethereum still have a long way to go in that regard. There’s also the distinct possibility that something newer may come along and displace cryptocurrency before it ever gains real-world momentum.
As a result, if you’re a risk-averse kind of investor, you might want to steer clear of cryptocurrencies. To make an investment in cryptocurrency you have to accept that you might lose your entire investment in the event cryptocurrency fails.
You’ll also have to consider just how much volatility you can put up with from an investment. Cryptocurrencies are subject to wild swings in value, including extremely brutal crashes.
Even if you invest in the most stable of cryptocurrencies like Bitcoin, you’ll have to decide whether your heart can take the highs and lows of investing in cryptocurrency.
Investing in Cryptocurrency may also need you to show some patience. Whilst you might be able to cash in and cash out with a tidy profit within weeks if you time your investment right, you could just as easily time your investment wrong.
If you’re sitting on some cryptocurrency at the time of a crash, it may take months or even years to get back to the value it was when you bought- and even then subject to wild short-term volatility in the meantime.
Is It Too Late To Invest In Bitcoin?
As a general rule, it’s never too late to invest in anything. There are good times and bad times to invest, sure, but never a time where it’s flat out too late.
Obviously, we don’t know what the Bitcoin market looks like when you’re reading this article, but let’s look at a couple of scenarios.
In scenario one, Bitcoin has recently suffered a major crash. You’re worried that the bubble has finally burst- is it too late to invest? No, in fact, it could be the perfect time to invest in Bitcoin.
Although Bitcoin might be having a short-term crash, the long-term trends for Bitcoin remain very favorable. Crypto assets (see also ‘Crypto Analysis Tool‘) are now beginning to integrate, and are increasingly being adopted by big financial institutions.
There’s even a soccer team in England that hopes to make it to the Premier League entirely with Bitcoin funding.
The crash may simply be a result of broader economic uncertainty. For example, higher interest rates may lead investors to move away from ‘risky’ investments like Bitcoin, but those conditions will not remain forever.
When conditions change, Bitcoin should increase in value as the long-term trends remain good. So, just because Bitcoin might have taken a dip recently, it doesn’t mean you’re too late.
In scenario two, where Bitcoin is at a relatively high value and stable, it’s still worth investing. The long-term prospects remain good, as experts say people increasingly begin to perceive Bitcoin as a reliable store of value.
Even though you may experience some crashes, if you’re prepared to be in it for the long haul, you should eventually see a return on your investment.
In essence, no it is not too late to invest in Bitcoin. Bitcoin is notoriously volatile but the long-term trends are favorable, even if there may be some short-term crashes along the way.
After all, crypto is still subject to the effects of economic uncertainty, too. Even if you think you’ve missed your opportunity to see great returns, there’s still plenty of potential in Bitcoin as the much vaunted $100,000 value per token looms large.