Is It Too Late To Invest In Bitcoin?
The straight answer is no, it’s not too late.
Let me share the contextual answer with you.
The first time I knew something existed that is called Bitcoin was in 2015. The person who introduced it to me asked a simple question: “If you transfer a file from one phone to another, which one is the original?” I was stunned by that question and it immediately clicked in my head how interesting that question was. Of course, to save the day, this person asked for my flash drive and sent me a lot of videos explaining how Bitcoin is relevant to that question. I watched the videos but didn’t fully understand things.
Fast forward to 2017 during the bull ride before the peak. Somehow, I found myself on this group where the message on the platform was that Bitcoin is now too expensive and no one should buy. The group admin and his men, of course, we’re pitching alternative coins then called SwissCoin. It was polished as the next Bitcoin that will rise from £0.2 to thousands of euros. In fact, the timeline of when that will happen was shown. Today, they are no were to be found.
Throughout this period of knowing about Bitcoin, I didn’t trade or invest in it at all. While the reasons may be a lot, the most crucial was that I didn’t have the money to invest. However, every year since I knew about Bitcoin, people have always wondered if it was the right time to invest in it or if it was too expensive already or if they could wait for another perfect time. And I mean every time.
Just to confirm that hypothesis, since you first heard about Bitcoin, how many times have you wondered if it was the right time to invest in it? And how many of those times have Bitcoin gone up more in price and you start imagining the kind of returns you could have made if you’d invested the previous time? A lot, right? I know.
I will share with you the simplest reason why I bought my first Bitcoin and which I’ve not sold until today.
Remember the question my friend asked me from above? “If you transfer a file from one phone to another, which one is the original?” Bitcoin is the technological breakthrough that solved that problem of infinite replicability. That is, you can successfully transfer the original version of Bitcoin over the internet. Beyond that though, Bitcoin was built with features that make it infinitely scarce. As you may know already, only 21 million units of it will ever exist.
Maybe that sounded interesting so far but that’s not my reason. Building on the problem it solves and how it is designed, two outcomes are possible for it. One it can fail utterly and not become anything. That will happen because society somehow agrees that they are okay with the status quo. Two, it succeeds massively and emerges to become the internet Gold. In which case, it’s value would be worth definitely more than what it is now at a less than $1T market capitalization.
Yes, that was the first understanding that I had that convinced me to invest in it. I chose to believe that society would see value in Bitcoin and choose it above others. I’m a technology optimist and my optimism is well-grounded, any bet against technology is a costly bet. The pages of history are full of proof.
So I chose the other side of the argument and put my money where my mouth is. That said, what’s even more important here is for you to know that so far, I have less than 5% of my investment in it. I am allocating just enough so that if I’m wrong, losing the capital won’t set me back and if my optimism is supported by the society, the return will be mouth-watering.
You are asking yourself the same question you’ve asked in the last 1 or more years. You wonder if you should still invest. I’m saying why not be like me and have optimism in technology and human ingenuity for efficiency. Beyond that, why not allocate just enough to get exposure to it but that won’t tamper with your survival if our optimism is unfounded.
Please note that Bitcoin is volatile a lot in the short term. However, if you look back at where it is coming from and where your optimism and mine and that of the society at large can carry it, you may just be surprised at how irrelevant that volatility may be.