Is it too late to invest in bitcoin? That’s a question that many people are asking right now. That’s because bitcoin has hit unprecedented price levels in recent weeks, and the media is awash with news of it being a bubble. If you are looking to invest in bitcoin in 2018, then the good news is that you are not late.Here are 4 reasons why you should not fear investing in it.
Even as demand for bitcoin surges, it is good to remember that there are only 21 million bitcoins that can ever be mined. This means that demand is increasing against a background of fixed supply. Based on the laws of economics, when demand is higher than supply, prices rise.Therefore, bitcoin’s value can only grow as demand continues to surge. When you look at it from this perspective, it becomes clear that even buying bitcoin at $20,000 in 2018 is still a great investment for the long run.
Other than the hard forks, another factor that has pushed up bitcoin prices in recent months is the adoption of bitcoin by some global companies as well as major global economies. Examples of these include its adoption by Japan as well as corporations like Amazon. If Bitcoin has reached its current price levels with only tiny level of adoption, imagine what its value will be, once it is mass adopted across the world. It could even hit $ 1 million per bitcoin, which makes buying bitcoin at current prices a bargain.
Bitcoin rose to prominence in 2009 after the collapse of the global financial system. It goes to show that the people no longer trust centralized systems like the stock markets. Now imagine what will happen once the next recession takes place. In case you think that will never happen, remember that the stock markets will never go up forever. It is necessary for them to go down for there to be buying opportunities. That process is called market cycles. With the level of mistrust in the financial system still existing, you can rest assured that bitcoin prices will sky rocket once the next stock markets crisis comes. Since stock market prices are at record levels right now, buying bitcoin in 2018 is a great investment, in anticipation of the next stock markets crash.
2017 has seen the price of bitcoin rise from $1000 to its current price levels of close to $20,000. This upward momentum has created a scenario where every dip is taken an opportunity to buy more. As more people continue to buy bitcoin, its price in 2018 will rise. In fact, some analysts believe that at its current growth trajectory, the price of bitcoin could top $100k in 2018.This makes buying bitcoin at current prices a good deal if you are looking for value growth in 2018. Clearly, it’s not too late to invest in bitcoin.
Now that it is clear that bitcoin prices are going up, it’s only natural to wonder about how to get started in it. Well, the first step to open a bitcoin wallet.A wallet allows you to store your bitcoins safely, once you buy them from the many bitcoin exchanges out there. With your investment in place, there are different strategies you may adopt to grow your bitcoin portfolio. These are as follows:
Under this strategy, you simply buy bitcoins then hold on them for the long run. In this case, you would be looking to hold on to them all through 2018, or half way through it, depending on your investment goals.
You may also choose to actively trade your bitcoins throughout the year. By adopting this strategy, you would be buying the dips and selling the highs. Alternatively, you may choose to short sell bitcoin now that bitcoin futures allow for this kind of trading. Though, this may not be the best strategy to adopt, considering that the demand for bitcoin is only increasing as we approach 2018.