If You Ask Me For Advice On Bitcoin Investing
A historical trend chart below, from Investing.com, shows how it has risen from $0.18/BTC to $4,600/BTC in less than 10 years.
So obviously, Bitcoin has had a very high return rate for its owners.
Right now, though, the question to consider is that “Will it keep going up forever?” Well, the answer to that is “No”. Nothing goes up forever. Then, again, it doesn’t need to go up forever for you to make a nice gain from it. Afterall, none of us is going to be around/alive forever. So a fine-tuned version of that question to consider will be “If I buy Bitcoin now, should I expect to make the type of returns it has historically being giving?”
Now that is a very hard to answer question. If you had asked me this two months ago, I would have said NO. But then it has risen over 100% in just the last one month. It has a way of proving critics wrong. It might again double in the next few weeks. No one can reliably say what it would do in the future.
Then what is my advice to anyone considering to invest in Bitcoin now?
My advice is very simple and straightforward. Avoid the herd mentality! The Bitcoin fever is now a global one and even people who don’t know how to create an email account by themselves are now into Bitcoin. That’s to say it is now what’s in vogue. Its recent rise is due to the huge public interest it now has. Buying into Bitcoin now would be likened to getting in at the top and expecting it to keep going up. Yes, it can happen that it’ll keep going up but that likelihood is statistically smaller than the reverse.
Only one thing is worse than missing an opportunity to make good money, and that is losing money on your way to make good money.
I am telling you what I tell myself. Nothing goes up forever. Bitcoin will come crashing soon and that would present a good opportunity to buy in. But now when it’s at its peak is definitely not the right time to get in.
Originally published at www.olafusimichael.com.