Should you buy bitcoin?
About two days ago, a senior colleague sent me a message and shared his concerns with me.
His first question was if it was a good time to buy bitcoin and his second question was if bitcoin was going to rise again.
Those who do not remember the past are condemned to repeat it. Santayana
The answer to this question requires a brief look at the past data available.
The data in this post will range from 2017-2022.
The price of bitcoin at the time of this post is 42.3k.
In 2017, when we experienced the bullish market that made BTC hit 21k, something happened shortly after we went down to 6k dollars.
Most people who did crypto didn't understand what was happening. A fraction of people sold their stakes including me out of fear.
4years later BTC hits 69k and settles at 42.3k at the moment.
Is it wise to still buy bitcoin?
My answer is a non-repentant yes
It is worth noting that Bitcoin has continued to steadily rise since 2010 beating every reputable asset in terms of ROI.
If you go back in history, you will discover BTC has been increasing in price every year by at least 15% except the year 2018.
As of last year, BTC was at $28994/BTC at the beginning of the year, By the end of the year, it was at $47k/BTC
As of January 1 of 2020, BTC was 7194$/Btc and by December 31st it was 28k$/Btc. That's about 400% ROI in 1 year.
As of January 1 2019, BTC was 3,746$/BTC and closed at the end of the year at 7k/$. This equates to a 100% return on investment.
Every year for the past 3 years BTC hits an all-time high despite the irregularities.
The only year BTC didn't hit an ATH in the last 5 years was in 2018.
With all these statistics, you will discover that time is the most important factor when investing in BTC.
If you had bought bitcoin in 2018 and sold it in 2018, you will be angry with yourself.
You will probably frown at crypto.
But if you had bought it then and kept it toll 2021, you will be closing above 300% in profits.
Moral of the story
Bitcoin is a good crypto investment and if you want to invest in bitcoin be ready to look long term.
Also, good timing is important when investing in bitcoin.
Buying when the hype is in the air is the wrongest way to go. The best time to buy bitcoin is when everyone is scared of buying.
Another thing to note is taking profits when the opportunity presents so you can buy more when there is a correction.
I will like to end this post with a famous saying from Warren Buffet
Be scared when everyone is greedy and be greedy when everyone is scared.
I hope you enjoyed this read. Do have a nice day.
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