Recently bitcoins climbed well above $7,000, and to think just a few weeks ago people were panicking because of a slight dip. Well, that dip never lasted long did it…
It’s easy to think that you may have missed the boat when it comes to investing in bitcoins. Especially, when you think you could of picked bitcoins up for a few dollars. It’s no secret that there were a lot of investors who literally became millionaires over night.
But, the question now is could it still be a good investment now? well if only we could all see in the future, then we all would be very rick. Unfortunately, we cannot see in the future but we can make predictions, based on previous trends in the cryptocurrency.
As you can see, bitcoins have been on a constant rise and there has never been a real drastic drop, only small dips that bounce back up. Unlike most other currencies, the bitcoins price is so volatile that they’re literally changing by large amounts by the minutes. Seeing the price change so frequently can b be very daunting for beginners, but its the very essence of investing in bitcoins.
Bitcoin history tells us that they will continue to rise in price. However, we also must be conscious that you’d think there must be a point where they level out (even though it looks highly unlikely at the moment).
There is a lot of talk around the bitcoin community that the price of bitcoins should reach $10,000 in early 2018. To be honest, I think it’s very likely, and it’d surprise me more if it doesn’t reach these highs. Although, the problem I see is what happens when it does reach these highs? will it come crashing down or continue to rise?
Many cryptocurrency experts expect it to rise into the tens of thousands, whilst others expect the bitcoin bubble to burst.
It’s hard to say what will happen, but I cannot see the bitcoin ride coming to an end. Lets face it, most bitcoins are currently being traded for illegal means on the dark web market places (for the likes of drugs). It’s hardly likely that, that’s going to come to an end soon and everyone starts using paypal to pay for their illegal highs. I believe bitcoins always going to have this market, no matter if mainstream take to using bitcoin (and that’s a positive in terms of bitcoin holding it’s value, even though many fail to admit it).
That leads me on to my next point, and that is, if mainstream adapt to using bitcoins – and what I mean by that is high street shops and eCommerce shops start accepting payments in bitcoins, then the price of bitcoins will sky rocket. It’ll be hard to see the price of bitcoins ever decreasing if this happens.
Do I think it’s a good investment? in a nutshell, yes. However, it’s knowing when to cash out. One strategy I use is if I’ve invested £1,000, then every time the price rises 20% – I take the 20% increase out. As soon as this has happened 5x’s you have your money back, and the remaining bitcoins you’ve made have cost you no money. It’s then easier to leave these and not worry about losing your money, as it’s effectively free money at this point.
Of course, it goes without saying you don’t want to lose your investment gains, so you still have to have an exit strategy in place.
There are numerous places that you can purchase bitcoins such as coinbase.com and bitpanda.com. I highly suggest anyone purchasing over £1,000 worth of bitcoins, or anyone looking to hold on to bitcoins for a long duration of time to keep them in a hardware wallet. Which you can purchase from Amazon for less than $100 USD.