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Is it too late to Invest in Bitcoin



 



Summary 

There is a popular quote which states that “There is still time to change the road you are on “.  Here, in this article, we will give you 5 reasons ( Timing, Demand and Supply, Scarcity, Immutability and Fear of Missing out)and explain why there is still a lot of time left and it is still not too late to invest in Bitcoin

 

Introduction

 

 

If you don’t find a way to make money while you sleep, you will work until you die. - Warren Buffet.

 

In May 2011, Bitcoin cost $8. 10 years have passed and BTC is now worth $42,000. So is it too late to invest? Imagine, that you thought it was “too late” when Bitcoin was at $20,000 and then again at $30,000 and then again at $40,000 and then again at $50,000 and well, I think you would have understood and learnt a lesson by now. I. Nobody knows what the future holds, but institutional investors are flooding in, individual investors are waking up, and with an ever-dwindling supply, the price may easily rise significantly. We'll explain why in this article why it is still not too late to invest in Bitcoin

 

Timing

 

Let's take a trip down memory lane when it comes to the history of Bitcoin prices in recent years for reference. Bitcoin reached a high of $12,920 in 2019. Doesn't it seem like a lot? If Bitcoin had even crossed my thoughts at the time, I'm sure I would have remarked, "It's so costly, I wish I had gotten in sooner." However, individuals who said "shut it" to that attitude and bought at that price are now up by a whopping 250%( Bitcoin’s Price as of 24-08-2021 is around $42000). now. We all wish we could go back to 2009 and spend a few dollars on a million Bitcoins. In retrospect, it seems incredible that it went from nothing to $60,000 in just a few years.t feels like We've missed the boat...right? Well, it is not. Bitcoin is sweeping the globe like nothing else, having surpassed the $1 trillion valuation mark earlier this year making it the 10th most valuable asset in the world. If you look at some of the charts available on the internet that have at least some historical data, you'll see that it's not too late to invest in Bitcoin. Based on all of the information available, we can confidently predict that the price of Bitcoin will skyrocket. Just for reference, Google is worth 1.2T, Apple 2.2 T, and Gold is 10T but it took those a lot longer to get there compared to BTC. 

So, the message here is clear:  Investing in Bitcoin takes a certain amount of patience. You are still early if you have a longer investing horizon, say more than 6-12 months, and you are not frightened of market volatility. 

 

 

Supply and Demand

As of 17-08-2021, 18.78 million Bitcoins have been mined, which means that 83 percent of all Bitcoins that will ever be created have already been distributed. There are little over 2 million Bitcoins left to mine. According to a rule of thumb, every four years, the number of confirmed transactions each mining problem solved is cut in half, thus the 21st million will be mined in the year 2140. Only a few institutional investors have made a move so far — Tesla, PayPal, Square, and MicroStrategy — but many more are keeping an eye on the situation and preparing to step in. There won't be enough coins for everyone when Google, Apple, Amazon, and a slew of other companies join the party. And that's only the start. Governments, multinational corporations, hedge funds, pension funds, and national estates are all interested in participating. The crush will be unlike anything we've ever seen before. So, as the saying goes “ Make hay while the sun shines “

 

Scarcity

Have you ever thought about why Van Gogh paintings are so expensive? Two reasons.

  • It’s a masterpiece 
  • It’s scarce.

What would the price of a single diamond be if there was only one? Quite a bit. The restricted quantity of bitcoin is one of its advantages over other assets. Scarcity is the fundamental reason why gold has remained so precious and risen for millennia. It's extremely difficult to locate, mine, melt, transport, and store. This issue restricts supply as demand rises over time. Bitcoin is the same thing, except it's better. Rare, costly to mine, slow to manufacture, and impossible to imitate. Scarcity can be quantified by SF.

SF = stock / flow,

where Stock is the size of the existing stockpiles or reserves. Flow is the yearly production. Instead of SF, people also use a supply growth rate (flow/stock). Note that SF = 1 / supply growth rate.

 According to the stock-to-flow model, Bitcoin's scarcity will ultimately push up its value, and by the conclusion of the next halving cycle (2020-2024), the model estimates a Bitcoin price of $288,000. So, while it is still in the lower half of a five-digit figure, it is still not too late to buy right?

 

Immutability

The issue of limited supply is only one element of the puzzle. Immutability is the other aspect. Bitcoin is based on the blockchain system, which records every transaction in a public ledger that can never be changed. Whatever data is stored in the blockchain remains there in perpetuity. Bitcoin can be transferred instantly around the globe with no storage costs or logistical hassles. Because all the transactions are on the blockchain, it’s also more easily auditable and verifiable.  You can store your private keys securely, no government can come and confiscate your savings. A hacker could cause chaos at the Federal Reserve (which has happened in the past), but no one can hack the blockchain. That's how fantastic it is as it is one of the most dependable methods of recording transactions ever devised. And it isn't only for financial purposes. Many sectors, including notary, property, health, identity proof, and sue, will be transformed by smart contracts and decentralized apps (Dapps).  Bitcoin can be used as a hedge against inflation of currencies, as an investment vehicle hoping that its price will go up. When this happens Bitcoin, and some Alt-coins will be pushed even higher due to the Network effect*, which is one of the reasons why we feel that it is still not late for you to invest.

*Network effect – the first mover always has an unfair advantage, which is why Apple couldn't compete with Microsoft in the 1980s and why Microsoft can't compete with Android now.

 



Fear of Missing Out

Bitcoin is owned by only approximately 1.7% of the world's population. When the remaining 8 billion people try to enter, the crowd will be massive. When you divide 21 million by 8 billion, you get: Bitcoins are worth 0.002625 each. That's how much each of us should have if it were allocated evenly. Owning that stake will set you back about $110 ( 0.002625*42000) at the time of writing. Even though it appears to be a small fraction of 1 Bitcoin (less than 1%), owning even that portion will be exceedingly challenging in the future. When institutional investors acquire thousands of bitcoins, hodlers who already have millions and will never sell, and those who lose their wallets or die without exposing their private keys, the quantity accessible to the rest of us is minuscule. Once again, supply and demand are at play.

We believe that if you could obtain 0.01 Bitcoin (now worth approximately $400), you may become extremely wealthy soon. We wish to stress that the possibilities and probabilities point to a bright future for the price of such a valuable commodity.

Conclusion

It is, indeed, too late to purchase Bitcoin. Years ago, you should have purchased it. People will say it again in 2030: it's too late now. They'll say things like "it's too late now" in 2040.  It was 20 years ago that the ideal time to plant a tree was. Now is the second best moment.

Michael Saylor, through MicroStrategy, is the largest institutional bitcoin investor. In 2020, he had never heard of Bitcoin! If last year wasn't too late, maybe this year won't be either. It took 5000 years to develop anything better than gold, and the next step is unlikely to occur very soon. If you feel that you are new to this world, examine the technologies and become acquainted with the new concept. There will be no turning back once you've discovered it.

  

Disclaimer: Whether you’re now convinced or not when it comes to investing in Bitcoin, we encourage you to do your own research and learn more about Bitcoin so you can make your own educated financial decision.


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