Why is it time to buy Bitcoin to not regret that it is too late again?
It doesn’t matter whether you are an avid Bitcoin fan or just a person who randomly scrolls through media coverage once in a while. These thoughts are inevitably crossing your mind sooner or later. They just won’t go away that easily. These are the thoughts about Bitcoin savings. Those arguable “what if” statements. What if you bought some BTC early in the game? Is it not too late? What if Bitcoin soars to $1 million?
You might be having a hardware wallet or just an ordinary Canadian CEX.IO account. And as soon as the next ATH arrives, these thoughts may bother you as well. Okay, it’s true. If you were to buy Bitcoin for back in 2011, by now you would have about $5 to $6 million. But let’s try not to regret it. The times when Bitcoin was worth $1 are most likely a history that doesn’t repeat itself. The only thing that we need to figure out in order to stop being toxic about the whole cryptocurrency theme is if it’s not too late to invest. At the end of the day what if Bitcoin really soars to $1 million? You’ll regret that you didn’t buy it for $60,000. So let’s look at some prominent theories and notions and try to figure out if it’s not too late to buy some Bitcoin.
BTC as schmuck insurance
The phrase “ schmuck insurance ” has come from traditional investment banking. It refers to a situation when an investor holds a small amount of shares in some business just in case if it suddenly rises in the future. Likewise, you might find your plumber or a teacher of your kids in the primary school to be holding Bitcoin. Some people hold it “just in case” while others are seriously considering it a part of their pension plan.
Anyway, Bitcoin dynamics have shown a significant influx of non-professional retail investors. Whether it’s because anyone can install and use a crypto trading app these days or because of the media coverage and COVID-19 crisis, but people across the world have started buying crypto. And this trend is much more developed than in 2017 during the previous crypto markets’ craze. This happens largely not because everyone started building their own investment strategies and making technical analyses. It’s rather because the majority of people would like to have some safe-haven investment that hedges their assets against the sudden fiat monetary crises which we know can happen anytime.
Economic and political reasons
Due to the COVID-19 pandemic, millions of people have lost their jobs or had to reduce their business operation. As a result, President Biden facilitated the issuance of the federal stimulus packages. Since trillions of dollars can’t be just taken from somewhere like that, the US government had to print them. The further inflation of the dollar raised many concerns. The issue is that the savings and assets that someone might have been collecting throughout their entire life might suddenly become depreciated. Similar events happened in countries like Turkey, Thailand, South Korea.
That’s why so many people have started looking for long-term hedge investments in assets that won’t lose in their price and appreciation over time. They expect such investments to become their lifebuoy at times when another economic crisis knocks on the door without warning. Since Bitcoin possesses such characteristics as scarcity, high trading volume, market cap, and its supply is quite predictable, it has become one of the options for being a savings asset. Additionally, the wide adoption can bring about a continuous price rise and therefore, multiply the initial investment.
Another reason for investing in Bitcoin is unstable policies regarding tax regulations in various countries. In order to keep the economy afloat, some of them introduce increased taxes, while others prefer to ban things like cryptocurrency mining and holding. For example, president Biden’s outline of a multi-trillion infrastructure package is to be financed by the increase in nearly 15 kinds of taxes. At the same time, China banned Bitcoin mining in Inner Mongolia which accounted for roughly 8% of the BTC supply. This event presumably increases scarcity, which together with increased demand, might lead to price spikes in the nearest future. That’s why some investors consider going long for Bitcoin right now to not regret it later.
Technology moves on
While it’s no question that Bitcoin is the king of cryptocurrencies, more sophisticated investors manage to earn on altcoins much higher percentages than if holding BTC, no matter the price trend. Did you know that dogecoin leaped almost eight-fold from its original price? Meanwhile, Ethereum is going strong with its 2.0 version deployment thus generating new all-time highs. Along with that, numerous ecology activists complain that Bitcoin mining consumes insane amounts of power which certainly wouldn’t deserve a seal of approval by Greta Tunberg.
You might have heard about new tokens appearing almost every day. All of them promise sustainability and large transaction throughput along with scalability and flexibility unseen before. To boot, they open doors for millions of independent developers by implementing widespread programming languages like Java, C++, and Python. All these things drive an increased activity on alternative crypto markets. So, even if it’s too late to buy Bitcoin, just keep in mind that it’s never too late to “cheat” on BTC with some promising altcoins.
Meanwhile, Bitcoin believers try to push it further to not suffer that they made their investments before. For example, some network issues can be easily solved with the help of enhancements like the SegWit protocol . Global payments providers like Visa also tend to support Bitcoin by developing the API for banks to allow instant crypto services. This project should be completed by the end of 2021. So, if they do implement BTC payments for buying virtually anything in the world from a cup of coffee to a new iPhone, then we could probably say that it’s never too late to buy Bitcoin, just like it’s never too late to have some dollars in your pocket.