Bitcoin Price Too High?
With the recent “all-time-highs” bitcoin and other cryptocurrencies have been reaching – I’ve been thinking about the psychology of money and how people are starting to feel like maybe bitcoin price is now too high, making this is another “boat” missed. While it is important not to risk what you could not afford to lose, as with any investment really – in my opinion, it would be a mistake to start feeling like this ship has sailed. If a person has an extra $20 – they can afford to buy bitcoin. For example, that will currently buy 0.00791271 BTC. Since individuals understand the basics of division when it comes to dollars, quarters, dimes, nickles and pennies – but this whole 8-decimal bitcoin division takes some getting used to, at least it did for me. So, that $20 converts to 0.00791271 BTC and it doesn’t look like much value at all.
But let’s say that person can pick up $20 worth of bitcoin every week. So, if said person had bought $20 worth of bitcoin every week since January 1, 2017 – the acquired bitcoin would be 0.42502225. At today’s price it would be worth $1,058 USD vs. $560 if saved as fiat dollars. I don’t know about you, but I’d rather have the $1,058 in 28 weeks! See the calculations or check for yourself.
BITCOIN PRICE vs. DOLLAR PRICE:
Psychologically, people are used to dealing in round numbers and limited fractions when it comes to money. You have to step outside the box in order to become familiar with the eight decimals of bitcoin – but it can be done, and it’s something I got used to pretty quickly. In the crypto-currency realm, it is becoming more and more feasible that more than half of Americans will never own a single full bitcoin unless they start to acquire it soon. It can be done if you make a plan and start now. Of course, only spend what you can afford to lose – and that may be more, or less, than $20 a week. The goal is not to be concerned about the weekly price, the goal is to “acquire” bitcoin and hold it for the future. Stock research analyst Ronnie Moas believes bitcoin could reach $5,000 within a few months. A CNBC article reports that Moas, founder of Standpoint Research, says “It’s starting to spread like wildfire right now.” Only 21 million bitcoin can ever exist, which increases demand for the digital currency that will naturally drive the bitcoin price up.
SHOULD YOU BUY BITCOIN?
This question can only be answered by each individual, same holds true for how much to invest. There is no guarantee that bitcoin price will continue to rise to the point many analysts are now predicting – and the price varies greatly from week to week. But my personal goals do not depend on today’s bitcoin price – my goal is simply to “acquire” bitcoin, as I believe it will someday be worth far more than our wildest projection, and I want to own some. When I began my own journey into the cryptocurrency space, “experts” were predicting bitcoin price would reach $1,700 by the end of 2017 – well, we’ve blown thru that by another $1,000+ on some days with the price now hovering between $2,400-$2,700. So yeah – it’s got my attention. The thing is, I feel it would be more painful to miss out on the opportunity this new, emerging technology offers than it would be to lose money. But that has to be an individual decision, and this post is only my point of view, my opinion – do your own due diligence and see if it’s time for you to start acquiring some bitcoin 🙂
Many in the tech-world, as well as some on Wall Street, believe that the blockchain technology behind bitcoin can fundamentally change the way the world operates, just like the internet did. I am among those who believe this will be the case, as I was, back in the day, when my corporate clients argued with me “there was no need to have a website.” Nuff said? LOL