Should I buy bitcoin now or wait for it to drop, this depends if you want to trade coins or invest for your future. We look at some ideas that may help
Why are you buying Bitcoin and what do you want to do with it?
Firstly they are called disruptive technologies and herald a different world into the future. We have seen this played out with Google, Amazon, Facebook, etc where adoption was slow.
However, life would not be the same now without this dramatic shift in technology that few believed would make so much difference.
Bitcoin and Blockchain are the latest technologies that will see a move to a completely different world.
Most of us are unaware of the use of Blockchain and the transfer of data and money in super-fast time and at an extremely low cost.
It is accepted by Visa and PayPal as well as some in the banking industry. Certainly investment groups are lining up to play the game and even countries entering the arena.
What is Bit coin really
In simple terms, it is an investment vehicle with transactional abilities. Whilst it is compared to Fiat ( local currency) and Gold it has its unique properties.
Created by a fictional person or group to work on the BlockChain it has a limited supply of coins to create a scarcity of supply sometime in the future.
Large computer installations (called Miners) do all the background work and keep the whole system going. For this work, they get paid in coins.
I am sorry to tell you however that there are no Gold Bitcoins just a line on a ledger.
The big difference is that this is an international facility available to even the smallest investor buying a fraction of a coin called Satoshis
A satoshi is the smallest unit of a bitcoin, equivalent to 100 millionth of a bitcoin. ยท Bitcoins can be split into smaller units to ease and facilitate smaller transactions .
Investopedia
Why will Bitcoin go up in Value
We mentioned that Supply is limited and demand is growing so the only way forward is up. How far up, you scream at me wanting an answer to meet your dreams.
BitCoin is called Digital gold and is being compared to Gold as a value of the currency that will support Fiat transactions. The Gold standard is long gone however available gold has a market price and an overall value of around nine trillion dollars. Interestingly the price of gold has remained relatively flat over the past decade.
For Bitcoin to equal the price of stored Gold it needs to be around $470,000 a coin or about 8X from the current price.
Investors want a haven from inflation
Inflation is running riot the world over and Interest rates are at all-time lows providing little value for investment funds. Gold is flat so does BitCoin offer a hedge against negative thoughts.
The coin has generally doubled every year so the half-million value could be just four short years away.
The FUD will disappear or at least slow down
The misunderstanding of the Coin creates a whole lot of press activity and reports that do not always represent the total truth. This is indeed understandable as it is new and change takes some time to sink in. Opinions are varied and many are very loud in what they have to say.
An example is Warren Buffet who slammed the coin originally and said he would never be an investor. While he has kept to his word he does now invest in funds that hold Bitcoin in their balance sheets. A real turnaround.
Just today I had a Note from a well-written Investment advisor. Now Scott Pope has panned crypto over many months however he was recently hit with a lightning strike and admitted he may be wrong.
Elon Musk the holder of about 1.4 billion dollars of the coin in Tesla slammed the coin because of perceived energy consumption. The miners required huge amounts of power to run the rig farms. What he failed to understand was that these large operations (billion-dollar investments) mostly went where there was excess green energy so they were doing the economy a favor. Elon changed his tune and bought more coins for SpaceX.
Interestingly he is currently holding a billion-dollar profit on his purchase.
Why does Bit coin go up and down in value
It is a transaction market. It will be, in some part, manipulated by the big traders called Whales. This is no different from the stock markets centered in your country although less regulated and controlled. Bad news, international events like a Covid crisis, or other unexpected situations will affect investor confidence.
Furthermore, you have day traders and futures that will push and pull values. It is all part of the crazy game and should be enjoyed more than frightened.
Nothing can go straight line.
Are all The Alt coins just as safe as bit coin
First of all, coins that are not Bitcoins are called Altcoins and there are about nine thousand of them.
Like anything, they are not all equal and some are blatantly Fun value. Meme coins like Dodge and Shiba Inu are just fun values and hold no long-term future.
Others like Ripple are under investigation and may be closed if the Feds get their way.
Generally, the top 100 coins represent a degree of security because of the money invested in them, what they achieve and who supports them.
Governments would love to affect more control and they do this where they can however principally in financing ventures.
When is the best time to buy Bit Coin
The only answer to this is now. However, waiting for a dip can offer great value as well. I am told to look at the high and low points in the year as the extremes and pick a target somewhere in this range.
The bottom price does increase every year so it is a matter of picking a trend or where the next low will be.
It also depends on your time limit and if you are a short-term trader or long-term investor.
For futures trading look somewhere else because that carries too many dangers for me to discuss.
Crypto and the network adoption effect
Picking the next price bolter and instant wealth.
If only we had done this a couple of years back we would know the answer. I made the mistake of thinking the market had peaked when BitCoin hit $4000.
There will be coins that change what they are doing and see an astronomical increase in value. You need to follow some of the experts that have some inside information and work on a hunch. They do come along and Solano was a recent example. They are similar to Etherium and Cardano however with a higher speed of transactions.
August -21 at $34 a share and November -21 just over $200 a share. That’s 7x in 4 months and a good return
New ones will appear based on real fundamentals so just keep a finger on the wheel and take an occasional gamble
Conclusion
Yes, I hold a small investment in Bitcoin and a few altcoins. I would not talk positively without a foot in the door and love the opportunities presented in the crypto arena. However it is investing and, as they say, you could lose some or all of your money.
Should I buy bitcoin now or wait for it to drop
- Not Investment advise.
nothing in this represents investment advise and is purely random thoughts. - Nakamoto Satoshi
Unknown person of people that delivered the concept. - Whales.
these are big investors holding a 100 + coins - Black Swan Event.
something that effects world markets. Covid-19 was such an event. - Hodlers
a local term for those investing long term - Alt-coins
Any thing other than the King of coins Bit Coin - Bull Market is going up and a Bear market going into hibernation.