What Is the Cost of Doing Nothing With Bitcoin?

What Is the Cost of Doing Nothing With Bitcoin?

By ssaurel | In Bitcoin We Trust | 13 Oct 2021

Bitcoin is a once-in-a-lifetime opportunity. That's my belief and the belief of all Bitcoiners. I have no interest in you buying Bitcoin, except that you can change your life for the better by taking back control of the fruits of your labor.

My only goal here is for you to discover the Bitcoin opportunity so you won't have any regrets in the future.

You know the famous phrase we tend to utter when we see a disruptive technology like Bitcoin being adopted en masse: “If I had known about Bitcoin before ...”.

When you read my articles and those of other Bitcoiners, you won't be able to say that. You will have no regrets as long as you have made the best decision for your future with full knowledge of the facts. To do this, you need to do your research to inform your thinking.

The few technophiles who seized the Bitcoin opportunity in 2010 probably did not keep their BTC

Among the things you need to think about, I'd like to draw your attention to the cost of doing nothing with Bitcoin. To do this, I'd like to take you back to 2010 first. Bitcoin had just been listed in U.S. dollars and its value was light years ahead of today's.

Let's say you decided to buy $1,000 of BTC in October 2010. At the time, Bitcoin was worth $0.11. With $1,000, you could have bought 9090 BTC.

At the time of writing, with a Bitcoin price of $56.6K, that would give you the equivalent of $514,494,000. You would have realized a capital gain of +51,449,300%. A phenomenal performance that speaks for itself.

On the other hand, you could have decided to do nothing and let the Bitcoin opportunity pass you by. After all, who believed in the future of Bitcoin in 2010? Very few people, since it was still a geeky technology in the eyes of those who had heard about it.

Your $1,000 in October 2010 would have been hit hard by the great monetary inflation we've been experiencing since then. Today, it would be worth only $784:

That's a drop in your purchasing power of -21.5% in just eleven years. So the cost of doing nothing with Bitcoin would have been twofold here: a loss of purchasing power of -21.5% and a phenomenal loss of earnings of +51,449,300%.

More people knew about Bitcoin in 2015, but many didn't take the opportunity

Some will object that it was difficult for them to know about Bitcoin in 2010. At that time, only a tiny minority of people on Earth knew about the revolutionary system that Satoshi Nakamoto had just invented. I only really got to know about Bitcoin in 2014. And yet, I'm a developer, so I had a greater chance than the average person to be exposed to this disruptive technology before anyone else.

Once Bitcoin hit $1,000 for the first time in late 2013, the media started to take a closer look at it. So you might say that from 2015 onwards, you were more likely to seize the Bitcoin opportunity.

In October 2015, the price of Bitcoin was $265. You could have bought 3.77 BTC. With a Bitcoin price of around $56.6K at the time of writing, you would have the equivalent of $213,382. A gain of +21.230%. Pretty interesting in only 6 years.

This gain would have been even more interesting for you since, during that time, your purchasing power of $1,000 would have dropped by -13.5%:

Again, the cost of not buying Bitcoin in 2015 would have been twofold. On the one hand, you would have lost -13.5% in purchasing power, and on the other, you would have missed out on realizing a +21.230% gain on the fruits of your labor.

Those who did not buy Bitcoin in 2020 had no excuse

However, it's possible you didn't hear about Bitcoin in 2015. We can fast forward to October 2020. We were amid the COVID-19 pandemic. We were facing great monetary inflation and the eyes of the world were on Bitcoin as it was about to embark on a phenomenal Bull Run.

De facto, you were bound to hear about Bitcoin during the year 2020. You may have decided to turn a blind eye to this monetary revolution, but you had the chance to seize the opportunity.

In October 2020, the price of Bitcoin was around $11K at the beginning of the month. If you bought $1,000 worth of BTC, you would have had 0.09 BTC. One year later, you would have the equivalent of $5,094 if you had kept your Bitcoin. That's still a gain of +409%.

In contrast, your purchasing power would have already fallen by -5.25% in just one year. The cost of not doing anything with Bitcoin when everyone was pointing out that Bitcoin is a great hedge against monetary inflation in 2020 would have been very significant in just twelve months.

The cost of doing nothing with Bitcoin is twofold

Today, everyone has heard about Bitcoin. Period. From this information, you could decide to go deeper into the subject or do nothing. Either way, it is your responsibility. As I have just shown you, the cost of doing nothing about Bitcoin is twofold.

On the one hand, you lose purchasing power because of the endless devaluation of the US dollar. On the other hand, you miss out on making the fruits of your labor grow thanks to the formidable hedge against monetary inflation that Bitcoin represents.

What is even more interesting is to understand that we are only at the beginning of the Bitcoin revolution. The capital gains figure I've given you will continue to rise in the future. Opting for Bitcoin will prove to be an even better strategy in the years to come.

For the U.S. dollar, you can also have a guarantee, but it is negative for you since its devaluation will continue to increase as it has for the past 50 years. It is up to you to see what you want to do with these data to protect your future regarding money as best as possible.

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