Impatients And Non-Believers Are The Only Losers With Bitcoin
This is evidenced by the steady increase in the lowest annual price of Bitcoin.
Bitcoin is just over a decade old. This youth necessarily implies a high volatility of its price. This volatility is often used by Bitcoin’s detractors to discourage the general public from discovering what Bitcoin really is and why Bitcoin is a revolution.
By using the risk of capital loss as an argument against Bitcoin, politicians, economists and other bankers seek to prevent the general public from discovering a new and fairer system. Their main goal is to make sure that people don’t come to question the current monetary and financial system.
As Henry Ford once said:
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
The more the general public remains ignorant of money, the more the almighty who rule the world will be able to act as they wish by not respecting the people.
All Investments Carry A Risk Of Loss
Politicians, bankers and other economists criticize Bitcoin because of the capital risks it can present, but they fail to point out that all investments present risks of loss.
The risk of capital loss on investments is more or less important depending on what they can bring you.
The higher the returns an investment can offer you, the greater the risk of loss.
If you want to be sure you won’t lose your money, you can choose to save it in a guaranteed savings account. And even in this situation, you lose money with the inflation produced by the central bankers’ decisions to create more and more money.
Of course, investing in gold is less risky than investing in Bitcoin. Gold has a much older history and therefore its volatility is very limited.
However, by buying gold or investing in the S&P 500, you can never hope to turn $1 into $90,000 as Bitcoin has just done over the decade 2010–2019.
Buying Bitcoin Now Is Your Best Chance To Turn $100 Into $10K During The Next Decade
Bitcoin was the best performing asset of the decade and it will continue for the next.
Buying Bitcoin now is clearly your best chance to turn $100 into $10K by 2030. That possibility comes with risks.
It all depends on your profile and the risks you want to take with your money.
Bitcoin Is Much More Than An Investment
Reducing Bitcoin to an investment comparable to gold or the S&P 500 would, however, be far too simplistic. Bitcoin is more than an investment. Bitcoin is a revolution that builds block after block a fairer system for everyone.
Bitcoin is the only credible alternative to the current monetary and financial system which is flawed and not fixable.
Buying Bitcoins should therefore be seen as an investment in a better future for many.
Many people come to buy Bitcoins attracted by the significant opportunities for profit that Bitcoin presents. Those who choose to keep their Bitcoin will learn more about what it really represents and what it can represent for the future.
Little by little, many of these people understand that only Bitcoin can get them out of the current system where money is constantly being devalued as a result of arbitrary decisions by central bankers.
By really questioning the money, what it represents and how it works, these people often become Bitcoiners and decide to invest in a fairer world by keeping their Bitcoins over time.
Bitcoin’s Yearly Lowest Price Continues To Rise
The Bitcoiners fiercely defend the Bitcoin system by accumulating new Bitcoins every month regardless of the price. They are not at all as concerned as some that the price of Bitcoin will drop below $7,000 or $4,000.
Bitcoiners remain true to their HODLING strategy.
Several studies have proven that HODL Bitcoin is the best strategy in 90 percent of cases. Defending Bitcoin therefore offers excellent investment opportunities.
Many people from the world of traditional finance, driven only by greed, criticize Bitcoin by saying that its price is stagnating. Bitcoin is said to have become boring to listen to them because its price can no longer return to the $20K level reached at the end of 2017.
They are wrong. I think it is much more interesting to observe the evolution of Bitcoin’s yearly lowest price from 2010 to 2019:
This chart clearly shows us that the Bitcoin’s yearly lowest price has been rising steadily.
There have been phases of stabilization and phases of strong increase but the general trend is a strong increase since the Bitcoin’s yearly lowest price has gone from $0.01 in 2010 to $3,350 in 2019!
This evolution of the Bitcoin’s yearly lowest price clearly supports the strategy of Bitcoiners who buy Bitcoins on a regular basis without taking into account the Bitcoin’s price before keeping them preciously for the future.
The Only Losers With Bitcoin Are The Impatients And Non-Believers
Those who criticize Bitcoin by pointing out the high risk of capital loss are ultimately right in one sense: there are losers with Bitcoin.
The only losers with Bitcoin are the impatients and non-believers.
Indeed, given the constant increase of the Bitcoin’s yearly lowest price, you only lose with Bitcoin if you don’t trust it and you get impatient.
People who bought Bitcoin at the end of 2017 driven by the strong FOMO sentiment that had taken over the market only lost money if they were impatient selling their Bitcoin during the prolonged bear market of 2018.
If you bought Bitcoins when its price was $20K, selling it when it reached $3,200 in 2018 was a totally stupid decision.
You got impatient with Bitcoin and panicked. The result was a catastrophic decision that cost you money, but Bitcoin had nothing to do with it.
The same way you would have acted with any investment would have led you to the same result. Indeed, I don’t believe that “Buy High, Sell Low” is a strategy that you would apply in the traditional financial markets.
So you have no reason to do this with Bitcoin and be impatient. Be patient, trust Bitcoin and you will be a winner when Bitcoin reaches $50K and then $100K in the years to come.
Bitcoin is extremely young which implies a high volatility of its price. The risk of capital loss exists but in the same way as with any investment.
When buying Bitcoin, you should be aware that Bitcoin is much more than that. Bitcoin is a true revolution that is building a fairer system for the whole world every day. To this day, Bitcoin is the only credible alternative to the current monetary system which is flawed and not fixable.
Revolutions take time, and as such, if you decide to buy Bitcoin, you should keep in mind that you will only win if you are patient. Bitcoin thus rewards only those who truly believe in it.