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One of the most commonly asked questions from people that are looking into investing in Bitcoin is:
“Is it too late to buy Bitcoin?”
People are constantly asking if they are too late to the party. Maybe they are thinking Bitcoin is just a fad.
Others are thinking because Bitcoin has risen so much in value. From just a few cents to hovering around $9000 – $10,000!
Since Bitcoin’s release back in 2009, we have seen it go from next to nothing to over $20,000 in 2017/2018.
During the beginning when Bitcoin was released it wasn’t really traded as it is today. It was something new and unique.
And not many people actually believed it could one day be worth the sums that we are seeing today.
It wasn’t until July 2010 as new speculators came on board and drove the price of 1 BTC up from around $0.0008 to $0.08 for a single coin (Investopedia).
Today the price of Bitcoin is hovering $9-10k. This is around half of what it was worth around two years ago in 2018. During the height of the last bull run.
If you weren’t aware of the fact that Bitcoin has experienced several bull runs in the past.
A look into Bitcoin’s price history
Big rises in price, and also heavy losses in price is natural for any investment instrument. But for Bitcoin and cryptocurrencies, it can be more extreme and more volatile.
But it is important for new investors and speculators to acknowledge and understand these price cycles.
Let us have a closer look at the previous price cycles for Bitcoin to get a better understanding of where it came from, and what BTC has gone through.
Have Bitcoin entered its fourth price cycle?
It is widely accepted that Bitcoin and cryptocurrencies are going through two clear types of defining price cycles.
- The positive bull cycle – when the price over a period of time is experienced positive growth. Which might also be amplified by market sentiment and price bubbles
- The negative bear cycle – now the price of Bitcoin is entering a pro-longed time of downfall coupled with strong negative sentiment and outlook
As demonstrated in the above image you can see the upwards and downwards price cycles of Bitcoin. Marked with the green and red dots.
Visualising where the cycle starts (start of the bull cycle) and where the cycle ends (end of the bear cycle).
What many people, from investors and speculators to institutional experts is that we have entered the fourth price cycle.
There are further historical data that is of significance. Which are the Bitcoin halving events (learn more about BTC halving).
These events have strongly been associated with the previous price cycles and bull markets. More on this shortly.
What is also looking clearer is that with each new price cycle for Bitcoin the cycles themselves are getting way less aggressive in terms of speed and volatility.
Each new price cycle is affected by the current number of traders, investors and daily users. Just the sheer number of active users on the Bitcoin network today is so much higher than during previous cycles.
So the effect of each cycle is getting more drawn out and less extreme you could say. As is obvious per the below image.
The halving’s effect on Bitcoin’s price
Another very important aspect to consider is the coming halving event.
The Bitcoin halving event is when the mining reward for Bitcoin is halved. Around every fourth year, the block rewards for Bitcoin miners are reduced by half.
This has happened twice before.
During 2012 and 2016.
And now in 2020, it will happen again. Reducing each new block reward from 12.5 BTC to 6.25 BTC. This is pre-programmed in Bitcoin’s code, that after every 210,000 blocks the rewards will be halved.
And why is this of interest? Namely, because each previous event has correlated with the previous price cycles of Bitcoin.
As is obvious each halving event in the past has correlated with a post-price increase of BTC.
After the first halving event Bitcoin’s price rose from $12.31 (during the time of halving) to $994,21 (369 days after halving), which is a growth of 7,976%.
And for the second halving event the price of Bitcoin rose from $650,63 (during the time of halving) to about $19,535.70 (369 days after halving, counting the price height of 2017 according to Fitzned Blockchain consulting), which is a growth of 2,902%.
- However, the price increase started before the second halving event, approximately 9 months before. But it was a pro-longed rise before and after the event.
Using similar analysis have we already entered the price growth during the the fourth cycle accompanied with any potential growth from the block reward halving?
This is of course highly speculative but still considered by many experienced traders, investors, and analysts as a strong possibility.
With that in mind, then now it is not too late to buy Bitcoin. If we were firm believers of Bitcoin and cryptocurrencies then right now would represent a golden time to invest in Bitcoin.
So I guess it really depends on what side of the fence you are at?
- Are you standing next to Warren Buffet, Dr. Doom and the likes that think Bitcoin is just a fad?
- Or are you standing next to the Winklewoss brothers and a new group of techies and investors?
5 reasons why it is not too late to buy Bitcoin
So if you are looking positively to the future of Bitcoin, and you believe that it has more room for growth.
Both in terms of usage and price increase then read on and we will explain our reasoning as to why we think the future is looking positive for Bitcoin.
And why it is not too late to invest in Bitcoin!
1 ) Cryptocurrencies and Bitcoin are just finding their feet
For a long time, the dark web and criminals were the most associated markets with Bitcoin. That is just a thing of the past.
Reports are stating from esteemed Bitcoin transaction analyst company Chainanalysis that 99.9% of all Bitcoin transactions are not going to the dark web (read more).
And since the bubble of ICOs burst and we are not left with the few strong that survived, and even fewer will through the natural selection I believe that in the coming year’s value will win over speculative nonsense.
The best of cryptocurrencies and blockchain platforms will rise. And this will help Bitcoin and the crypto market as a whole.
And so will Bitcoin rise again, proving Warren Buffet that they yet again he’s wrong. And Bitcoin won’t fall to zero.
2 ) Bitcoin is extremely resilient
We have heard it all before. The prophecies, the slandering, and misbelief. But I am genuinely asking where has it taken Bitcoin?
Has it all shown to be true?
Has Bitcoin fallen to zero yet? Has it shown it can’t be trusted a long-term store of value? Has it not proven it can’t work in sending large sums of value across the world for next to nothing?
Yes, there have been downs. We are witnessing not only a new investment market and vehicle. But a new age of decentralised economy and governance. So with the past experience of Bitcoin and Bitcoin Cash.
And the problems with governance in a new decentralised economy we are still finding our feet.
But no matter what Bitcoin’s gone through it has risen. It has shown the world that it is still fighting back. It has come back from the price dip to about $3000 to today’s prices around $9-10k.
So for me that shows resilience, belief and promises. But then yet again I’m on the other side of the fence and believe in the technology. But also in the people.
3 ) The crypto market is still in its infancy
This has been said many times before but it still remains true.
The amount of usage of this new decentralised economy is nothing compared to other markets and economies. And the value of the entire crypto market capitalisation is nothing compared to other investment markets.
The entire market cap of all cryptocurrencies is around $250 billion worth. That is nothing compared to the global stock market’s value of around $90 trillion. And the forex market’s value of around $6-7 trillion.
4 ) The technology is a given
The technology behind Bitcoin and other cryptocurrencies, the blockchains and decentralised ledgers are nothing short of unique. And the potential impact it is having and will have on our world will undoubtedly be vast.
Imagine a world where we can transfer value across the world for no fees in seconds?
Imagine a world where the drivers that take us to school, work, hospitals and wherever we want to go get 100% of the money we are paying and not the likes of Uber who pockets a majority!
Imagine a world where decentralised governance means that we can yet again truly shape and participate in the decision-making process.
In a future where technology and automation will make our lives prosper blockchain fits perfectly into it and will only empower these other technologies. Such as AI, IoT, Machine economy, etc.
It just makes sense. And for me, if it makes sense I see more potentials and opportunities. For both Bitcoin and the rest than I see hindrances and blockers.
5 ) Bitcoin and crypto are global and belongs to everyone
One thing that really attracted me and probably many others to this space is that Bitcoin is a symbol of our time and age.
Bitcoin and cryptocurrencies and blockchain technology represent a new era, where no matter where you are in the world, your faith or your skills you are part of this new world.
Decentralisation is an effect of the rise of power and wealth controlled by the few.
The crypto market is, not a closed market where only the few can enter. It is readily accessible and open for anyone with a computer or smart phone.
Here we have the best opportunity in a long time for a shift of power, wealth and accessibility to the people again. And that is unique and that will have extremely positive effects on the entire crypto and Bitcoin market.
So when it comes to the future of Bitcoin and cryptocurrencies I, of course, am a firm believer. Otherwise, I wouldn’t be writing, making videos, and talking about it all.
I am also as strong of a believer in blockchain and the decentralised technology, and the effect it will have on almost every industry. So as a designer and business developer I find that side of this so inspiring.
I hope that you enjoyed this article. And all-though I have tried to make a case for why I believe in Bitcoin it is of course up to you to make your own decisions.
But I myself definitely think this is an interesting time for Bitcoin and crypto. And I hope it gave you some additional insights into this commonly asked question – is it too late to buy Bitcoin?
I have my reasons for belief in Bitcoin. But you should make your own decision. And the advice here given is not a financial advice.
You should never listen to anyone else and blindly follow their advice without thinking it over and making your own decisions.
Find other guides:
- Kraken vs Binance vs Coinbase
- Best ways to earn passive income from crypto
- Buy VET (VeChain) guide
- Complete guide to crypto taxes
- Guide to Bitcoin and crypto wallets
Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier