Is it too late to buy bitcoin, or is it just a bubble? I usually get this question quite a bit from close friends, family members and even random people that I meet daily. If you are a crypto expert, you’ll probably be asked the same question before Halloween. In fact, a simple Google search for “Is it too late to buy Bitcoin?” reveals more than 18,000,000 results.
So, is it too late to buy Bitcoin or is it just a bubble? Well, the truth is that it is never too late to invest in Bitcoin or any other cryptocurrency for that matter. It doesn’t matter when you buy your Bitcoin because the crypto market is among the most dynamic and rapidly growing financial markets in the world.
Although Bitcoin prices tend to fluctuate a lot, it is quite unfair to refer to these fluctuations as a bubble that is ready to burst. The truth is that Bitcoin opens up a world of great technology and endless opportunities for people. Bitcoin is built on blockchain technology that is gaining rapid acceptance all over the world.
Therefore, we cannot say that it is about to die. The biggest problem with some people who make losses is that they invest money into Bitcoin because other people have done so. They don’t take time to understand the whole idea and know how to go about it.
Before you start investing in Bitcoin or any other cryptocurrency, you need to take your time and conduct thorough research. Know the current market trends and catch up with all the latest news. That way, you will make informed decisions that won’t hurt you in the future.
The Major Bitcoin Bubbles We’ve Experienced So Far
The truth is that Bitcoin has experienced its own fair share of good and bad days, but it has managed to stand the test of time. Whenever its price rises sharply, you’ll hear a lot of people say that the Bitcoin Bull Run is on and whenever the market takes a sudden dip, the same people will come forward and call it a bear market.
For investors, it is always a good move to go slow on buying Bitcoin when the price gets too high, especially during the bull runs when it is really high. Be sure to wait for some big dips before you start investing your money. That way, you can be sure of high profits when things get better.
Ever since its inception over a decade ago, Bitcoin has had several bull runs and also survived the scariest moments of the market as well. Here are some of the major Bitcoin bubbles since 2011.
- The 2011 Bitcoin bubble: Slightly over one year since Bitcoin trading started, this cryptocurrency recorded a massive increase in the number of people investing in it. The result was a sharp rise in its market prices. The price of one bitcoin shot from $0.30 as of January 2011 to $30 as of June 2011. At that time, the number of people using Bitcoin was low, and as the demand increased, people started selling their coins. This led to a whirlwind of selling Bitcoins, and the price took a major hit and went as low as $2 within five months. Later on, the price rose by more than 10,000%. This led to a whirlwind of selling Bitcoins, and the price took a major hit and went as low as $2 within five months. Later on, the price rose by more than 10,000%.
- The 2013 bitcoin bubble: Bitcoin started the year at around $15 and hit $50 by March. By April, one Bitcoin was worth around $100 and in less than two weeks, its price doubled to hit $230. However, a few days later, the price dropped to $160 then rose to $170 a few weeks later before dropping to $100. It stabilized at $100 for a few months before rising to $250 in November, and within one month, one Bitcoin was worth $1,100. This was significant growth in less than a month. Again, the “bubble” burst and the price dropped to $700.
- The 2015 bubble: After experiencing multi-year instability, the price of Bitcoin started to stabilize in 2015. Suddenly, it became the new thing in town, and its worth went from $177 in January 2015 to $465 by December of the same year. By the end of 2015, bitcoin had recorded a 160% increase in its price, and many people believed that things were going well for the digital currency.
- The 2016 Bitcoin bubble: 2015 was a good year for Bitcoin and the good times were carried over to 2016. The price of one Bitcoin rose from $378 in January 2016 to about $1140 in December of the same year. This significant rise in price attracted many investors which resulted in the market taking a hit a few days later.
- The 2018 bubble: This is probably the bubble that everyone remembers. Bitcoin started 2017 at around $900 and ended the same year at $20,000. This represented a 2,395% increase in the price of Bitcoin, and it was the largest since 2011. However, things took a wrong turn in 2018 and saw Bitcoin prices drop to $15,000 and then $8,000 before the end of 2018. This was a time when many people sold their bitcoins out of fear of losing money.
Are We in the Middle of a Bubble?
After listing some of the major Bitcoin bubbles that we have been through so far, you may be asking yourself whether we are in the middle of a bubble or if it is just too late to invest in Bitcoin. In this section, I want us to break down things step-by-step before we draw a conclusion.
The truth is that the media is being crazy about the so-called “Bitcoin bubble” because of Bitcoin’s high price tag. In fact, no media house cared about this cryptocurrency in 2011 when its price was relatively low.
Journalists and other self-proclaimed crypto experts only started casting their spotlight on Bitcoin in 2017 when the price shot from $2000 to $4000 in a few months. However, nobody cared in 2011 when the price of one Bitcoin tripled in less than seven days because its worth was still low.
What I’m trying to say is that if Bitcoin was a bubble as many people want us to believe, then it had been popped numerous times before it became popular. I’m convinced that many people are just confusing the media hype combined with the relatively high prices for a bubble.
Other cryptocurrencies have grown 100× in less than a year, but nobody talks about them because they still cost less. Once they hit the higher price tags, then you can be sure that the bubble talk will start for those cryptocurrencies as well.
The bottom line is that people are focusing too much on the wrong numbers instead of paying attention to Bitcoin’s rate of growth.
So, Is It Too Late to Invest in Bitcoin?
The short answer to this question is no. The truth is that there is nothing like a Bitcoin bubble, and only a few individuals believe that crypto is a pyramid scheme.
Less than 0.3% of the world’s population own Bitcoin and Blockchain technology upon which bitcoin is pioneered is gaining worldwide acceptance. Some universities offer courses on the same, and big companies are investing in research and development to see how they can leverage blockchain technology to gain more profits.
Another crucial thing is that compared to Bitcoin’s overall growth, the price fluctuation is a drop in the ocean, especially if you look at the percentages instead of the numbers.
For instance, in 2017 Bitcoin recorded a 2800% growth and dropped by only 60% in 2018. This means that if you had bought it earlier, you’ll still make good money despite the price drop.
The best way to analyze this argument is by looking at the percentage gains and the specific periods during which the highs and lows happen. This way, you will have a clear picture of what is happening in the market and make a sound decision.
Banks Are Filing Crypto Patents: More Good News for Bitcoin
While a few people think that Bitcoin and other cryptocurrencies are doomed to fail, you will be surprised to learn that some banks are filing crypto patents. This shows that the future of crypto is bright, and things will only get better with time.
Currently, the Bank of America, one of the world’s largest banks, has over 50 patents in the blockchain space. The primary reason why this is happening is that banks and other financial institutions have looked at blockchain technology and saw an opportunity to speed up payments.
This technology allows several parties to hold and constantly update the same ledger of transactions making it quite difficult to alter such information.
Technically, this means that the bank may be in the process of developing working products that will be based on blockchain technology – the same technology upon which Bitcoin is built.
The Launch of Bakkt Signifies the Long-Term Importance of Bitcoin
The recent launch of Bakkt was a huge statement on the importance of Bitcoin and other cryptocurrencies in future transactions. This futures exchange platform will open up massive utilization of Bitcoin in the future.
Regardless of its relatively slow launch, Bakkt is still a significant development for the aggregated cryptocurrency markets since it provides the much-needed legitimacy for Bitcoin.
Furthermore, it offers investors a safe and relatively easy way to venture into different markets. The long-term impact of Bakkt on crypto markets is likely to be significant because it has been tailored for institutional and large retail investors.
Where Can You Buy Bitcoin?
So, do you feel like this is the right time for you to dip a toe into the cryptocurrency market but don’t know where to buy Bitcoin? Well, one major Bitcoin exchange is Coinbase. Here, you can invest in bitcoin or two other digital currencies, namely Litecoin and Ethereum.
However, don’t put too much into it at the start. The first time is always like going to the casino – you hope to learn something from the experience. Basically, I’m trying to say that only invest money that you can afford to lose.
The Bottom Line
We cannot deny the fact that bitcoin has risen and fallen many times since its inception. In 2017, we saw Bitcoin record the highest growth going from $900 to $20,000 within a few months. Today, the price of one Bitcoin hovers around $8, 370.
If you got in earlier then this is not too bad. However, I have a strong conviction that we shall experience a price drop soon, and from there, the only way will be up. I believe that it is not too late to buy Bitcoin and I’m also convinced that we are not in a real Bitcoin bubble.
I hope you enjoyed reading my thoughts and feel free to let me know what you think in the comments section below.