Should you buy bitcoin now, in 2018, or wait?
Good day, ladies and gentlemen! Today I want to share with you thoughts on buying bitcoin today, in 2018 when all people on Earth, maybe not all people, but almost every single internet user already knows what it is.
So, what’s the main reason why people buy bitcoin? The main and the only reason is that it was the easiest way to make money - easier than investing in the stock market, easier than buying real estate property, and of course easier than starting a small business and working your butt off.
Had you invested 100$ five years ago, today you would be self-made, this is really important, a self-made millionaire, not because of luck, but because of your curiosity! And there are a lot of people who did that. I was one of them, I purchased bitcoins at $100, sold them a year ago at $200, I thought it was great to make 100% per year. But now I understand how stupid I was.
So, five years ago, three years ago, a year ago it did make sense to buy bitcoins in order to sell them at a more expensive price.
But what about today, what about 2018? In my humble opinion, the most important service for an investor, or for a person who wants to speculate a little bit is not Investopedia, blogs or youtube channels of successful investors, but Google Trends.
Google Trends reflects what keywords people are searching for on a daily basis. And if you go to Google Trends and search for “bitcoin”, “buy bitcoin” or something like that, you’ll see this picture.
You see? It’s not about price, it’s about popularity. It makes sense to buy bitcoin, or other cryptocurrencies, or another asset before the crowd, the general public gets interested in buying it.
The price is always driven by demand. You can do your homework, and check if this popularity tracks and reflects, maybe not tracks and reflects but correlates the price? And you will see that it does. Do you see how popular bitcoin was? Can you predict the next peak?
So, from this, sociological point of view, I don’t believe that the price will increase tenfold, twenty times or one hundred times this year, or in the next year, or in five years. There is always a limit, a sky for a certain asset, for a stock, for real estate.
But there is another, more optimistic opinion for those of you who own bitcoin. There is an opinion that bitcoin will eventually be the single global currency. Twitter CEO Jack Dorsey said that. And other people agree with him. One of them is Bill Gates who’s often called the strongest believer in bitcoin.
If this becomes real, one bitcoin might be worth $10,000, $20,000, $100,000, $500,000, $1,000,000, even more, the sky is the limit. Because, as you know, only 21 million of Bitcoins can be mined. If every single person in the world starts using bitcoin, it will skyrocket. Will it happen? I don’t know, nobody knows. But the probability exists.
Skeptics say bitcoin has no value. But the US dollar, which is the global reserve currency, has no value as well. It has some value because people believe in it, people believe that it has value, in reality, it’s just a piece of paper. The same applies to bitcoin. What’s the difference between a digital dollar and a digital bitcoin? The only difference is that the US dollar is issued, printed and fully controlled by a small private company located somewhere in the United States. And bitcoin is not controlled by anyone.
They, the powers that be, might prohibit using of bitcoin in future like some countries already did, they might take it under full control, and they might issue, create their own cryptocurrency. For some reason, I think they will do that.
So, should you buy bitcoin now, should you invest in bitcoin in 2018 after that peak? Well, if John is a student, or a kid, or an adult who doesn’t have any savings, I wouldn’t say that it makes sense for him. But if he an investor, if he has some money invested in the stock market, in his retirement account, I believe that even today, in 2018, it does make sense to invest a small portion of his investment portfolio, 1% or 2% in bitcoin.
That’s my opinion. Give this video a like if you like it, give it a dislike if you don’t, share it with your friend, post a comment below, and let me know what you think about cryptocurrencies, do you still believe in this bitcoin?