As a self-proclaimed opportunist and avid investor – I love risk. As long as the reward is appropriate; it just needs to be managed.
So when I found out that bitcoin was trading at $900 earlier this year, and is now upwards of $10,000, I nearly fell off my chair. Those kinds of returns are unheard of.
Should I invest in Bitcoin?
It’s a yes, for me.
What if I missed the boat?
If I was one of the first to buy Bitcoin in its early days, I’d be driving around in a lambo. I have no shame in admitting that.
But the risks back then were much greater. The reward, obviously higher, and it’s paid off for those that had the appetite for risk and the foresight to see mass adoption of the blockchain.
So am I late?
Considering that a 1000%+ return on Bitcoin was made just in this past year, Bitcoin still has a long way to go. Even if it was to experience a slow-down in growth.
Also consider this: The market cap of the international stock market is in excess of 50 trillion US dollars.
Cryptocurrencies have only just passed $500 Billion US.
As time goes on, and the market cap increases, the price will become a little more stable, and ideally, data would become easier to analyse. Perfect if you’re a trader.
Bitcoin and cryptocurrencies have massive potential as currencies, assets and payment platforms amongst a myriad of other use cases.
AND… it’s only just taking off.
What should we expect of Bitcoin in the future?
Okay, so it’s established that we’re not too late. That doesn’t mean Bitcoin will continue its meteoric rise (or will it?)
We’ve had big names come out with wild predictions.
Let’s take a look at some:
- Wences Casares (CEO of Bitcoin Wallet, XAPO): $1 million per bitcoin in 10 years
- John Mcafee: $500,00 USD in 3 years (2020), now revised to $1 million USD by 2020.
- Tim Draper(in 2014): $10,000 by 2018
- Jamie Dimon: “If you’re stupid enough to buy it, you’ll pay the price for it one day.”
- Peter Schiff: “Bitcoin is Digital Fool’s Gold”
In reality, no one knows.
As an investor, whether it stays or goes, there’s money to be made.
For now, it seems that it’s not going anywhere… it’s just all-time-highs, after all-time highs..
How do I maximise my returns?
Simply buying bitcoin and hodling for the mid to long term seems to be profitable for most.
But how can I maximise my returns.. like NOW?
There’s a number of ways to increase your holdings.
- Mining involves a large investment, and possible reinvestment if your mining rigs become outdated. I’m personally, not interested in mining, although it does sound like a good way to diversify. It’s just a little too technical for me.
- Buy and Hold: Or should we say HODL! This would be the safest way. Buy your bitcoin and just store it safely away. Remember your passwords!
- Trading: Bitcoin, like any stock or commodity, experiences bull runs and bear runs. If you have a keen eye for technical and fundamental analysis, there are ways to take advantage of these runs.
- Buying into an index: With over 1200 cryptocurrencies, there are now indexes, designed to make investing into the cryptocurrency market easier. For newbies, this may be a good way to start.
To maximise your returns, it looks like it would be a good idea to diversify your bitcoin and cryptocurrency exposure through different approaches. Mining can be really profitable but the self-education, setup time and costs are a big barrier for most.
It’s a yes!
So, my resounding answer to, “Should I invest?” is YES. HELL YES.
BUT only as much as you’re willing to lose.
Of course, you can always lose value in your investment in the short term, depending on your entry point. But from the comments of those in the industry, and the rate of adoption, Bitcoin has a long way to go(up). It can also come down to almost nothing if Governments step in to cripple the ecosystem.
Only time will tell. But one thing is for sure, I’m not going to watch from the sidelines in this market. Best to get in before the masses jump on board. With the market cap above 500 billion it is only a matter of time before every Tom, Dick & Harry owns a little bit of the crypto.
It’s already the talk of town, you don’t want to be the one missing out on this big opportunity.
The only questions are how much and how, should I invest?
This article has been published for educational purposes only and does not constitute as financial advice.