Is it good to purchase Bitcoin at the current price?

about 3 years ago

This has always been a question for many people ever since BTC crossed 1$ in price. I guess this will be a valid question even in the future. I would like to share some of my personal thoughts on this for people to decide if it is good to purchase BTC at the current price or not.

In the last few months, we have all been seeing multiple ATH. Some people thought BTC would touch 20k and some predicted for it to reach 30k and then 50k but now it doesn't look like the pump would be stopping anytime soon. There were some shortfalls in between but the price is still solid and is not going to come down anytime soon.

Source

I would like to highlight some concrete points which I consider as strengths that would motivate us to stay invested in BTC. Based on these points, anyone can make a decision if they should be purchasing even at today's market price or not.

Supply is limited

Unlike some of the other cryptocurrenices, the supply of BTC is limited. People can mine only a total of 21 million bitcoins. Out of the total 18.5 million bitcoins that have been already mined and it would take a lot of time for the remaining to be mined. What will happen to the chain after all the bitcoin is mined? That's a good question and you can find answers for the same online. I will try to cover that in a separate article.

There is a sink

I wouldn't say that there is a direct sink but indirectly the sink is always available. There are many people who miss their wallet keys or people who die without passing their private keys to others. I don't know how that can be calculated but there is definitely a sink through these methods where the supply keeps reducing. As the number of coins is definite, the coins that go out of supply will never be refilled.

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Demand is increasing

As the supply is limited many people would want to hold it. This will obviously increase the demand because the number of Bitcoins available in total is very less compared to the population of this world. Imagine people who are still holding a shit load of Bitcoins from 2009 which is when many people bought it for 1$. When more people hear about bitcoin, there will be more people starting to invest.

More like an asset than a trading token

The price keeps going up. Now people think of Bitcoin more as an asset than a trading token. Though there are many people who trade BTC regularly in the exchanges, direct P2P trading is very minimal considering the time it takes for the coin to get transferred from one wallet to another and also the high fees involved in direct wallet-to-wallet transactions. Exchanges provide a facility however to do the trading with minimal fees. There will be no wonder if the price goes even beyond 100k or 500k per BTC. Nobody would have thought the price would hit 50k during 2009. So, the future can never be predicted.

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Decentralized

Decentralization is one of the key features of Bitcoin and other popular cryptocurrencies out there. The algorithm is set in such a way that it is self-sustaining and there is no need for some individual or a company to take care of it. There is no central authority governing the blockchain. Anyone is allowed to run a node. This also makes it challenging to take away Bitcoin from this world. As long as we have internet in this world, BTC will be alive.

Based on the above points, I would like to leave the decision to you. Maybe it will be 10X than the current price in another 2 years, who knows. In the last 3 years, I have seen the price go up and down multiple times and I have missed all the opportunities. Personally, for me, the BTC price is out of my reach for both tradings as well as holding. I might focus on some of the Altcoins with similar potential. Those who have the potential to invest in BTC at the current market price should probably give it a try. But patience is very important.