The big question on most people’s minds coming in late to Bitcoin, especially after last year when it was as low as 16,000 a coin is, where do we go from here? Is there even an opportunity for a latecomer? The answer to that question really depends on what an investor thinks cryptocurrency is going to do over the next five or 10 years. In fact, it doesn’t even need to be a decade. Five years is more than long enough given the current pattern of what Bitcoin has done.
The Tea Leaves Reading
The general argument would be that it’s going to continue to rise. It will have dips. It will have corrections just like BTC did recently, dropping down to $62K and now starting to ark back up again. This last major correction went from a highpoint of $64K a couple years ago down to, as I mentioned earlier, $16K. And now it’s back up to $68K and cracking $70K. Clearly, the market continues to swing and will continue to keep swinging, but the overall trend is a general march forward.
Even if Bitcoin drops down to $20K or $30K again, the pent-up demand for the digital currency to keep rising is well established. The money that’s going into the market is not from consumers or even well-to-do individual investors. It is institutional, and the addition of exchange traded funds i.e., ETFs has only added more kerosene to the fire.
Warren Buffett is Almost Dead, Why are We Still Listening to Him?
Bitcoin has proven itself regardless of the naysayers, and the argument that there’s nothing there really doesn’t hold any water because one could make the same argument about gold as well and about fiat dollars these days. The value is perceived. So long as the market applies a value, it’s worth money and it’s worth growth for investing.
Does that mean an investor should just revert back to buy and hold and forget about BTC to then come back five years from now expecting to see an increase? Oh hell no! If one thing we’ve learned from crypto markets, it’s the lesson that you better pay attention or someone else will take your wallet. That has happened in more ways than just market losses too (How many defies have been hacked?).
Putting My Money Where My Mouth Is (Sort of)
Personally, I’m in Bitcoin, and I’m still buying even in the $60Ks. Am I expecting somehow to catch the tail end of a big wave? No, not really. I’m actually being fairly smart about the approach; I’m using free money that I earned from other drops or gains etc., rather than using my principal and my value of savings. The strategy here is that I got the money free. It could go away in a moment, but anything that I’m gaining on top of a game is just that more free gain. In the meantime, I still have my reserves. I still have my savings, and I’m not playing Las Vegas on where Bitcoin it is right now. While that strategy doesn’t produce mega millions, it will produce a profit, and it’s a hell of a lot safer.
