No, You're Not Late on Bitcoin
Even after more than a decade, Bitcoin is really just beginning
Recently, I attended a party with about two dozen good friends, most of them people I’ve known for years. About halfway though, I found myself engaged in an extended conversation with a woman I consider smart, savvy, and oh-so-sophisticated.
“I’d love to get into Bitcoin,” she said over her half empty wine glass. “But don’t you think it has run its course?”
“No way,” I replied.
“Really? It’s at sixty thousand.”
“It will go higher.” I paused. “I don’t know how to say this without sounding crazy, but soon enough, one Bitcoin will probably cost more than a house.”
She seemed shocked when I told her that, and proceeded to ask me a plethora of questions about Bitcoin and cryptocurrency. Even though I’m not qualified to give anyone financial advice (again, this newsletter is for entertainment purposes only), I answered them as best I could.
The biggest question she had? It was the same one I hear all the time:
Who has the money to buy a whole Bitcoin?
The answer is: not many people. Simple fact. Most investors don’t have the capital or the stomach to drop sixty thousand on a digital asset. But even more don’t realize—you don’t have to buy a whole Bitcoin to buy Bitcoin.
It’s okay to start small. Small is good.
Fractionalized Bitcoin it still Bitcoin. It’s easy to start investing with just a few dollars, maybe a few times a month. That’s it. A couple of transactions, an account on the exchange, and you’re on your way. You’re in the game—and going forward, that will be critical.
Bitcoin is here to stay. What was once an obscure asset is now front-and-center in our changing world. All you have to do is turn on the news to see it.
Why? Mostly because Bitcoin is deflationary. There will only ever be 21 million Bitcoin, and once they are mined—that’s it. No more. Additionally, Bitcoin gets harder to mine (through a complex system of computer programs) every few years. That is built into the blockchain, makes it scarce, and causes investors to see it as a store of value.
Couple these deflationary aspects with increased adoption, and you have a simple recipe as old as economics itself—supply and demand. We’ve all heard that before. This is not Economics 101.
When supply is low, but demand is high, then the price of something increases as the value of it explodes
I’m not talking about short-term price action with regards to this asset. I’m talking about long term trends. And with Bitcoin, long term price has always increased. Always. As Bitcoin moves further into its second decade, the ecosystem around it (payment systems, institutional investment, ETFs, and so forth) only grows. Bitcoin might enter a future bear market (it probably will), but that only means more opportunity for long-term holders to increase positions.
Ask yourself this—if you think Bitcoin is “too expensive” when the coin is in the $60,000 range, how will you feel about it when the market price is $100,000? Or $200,000? Or $1 million?
Will you think, “I should have bought Bitcoin when it was in the 60s”?
You’re not late on Bitcoin. And you don’t have to invest your life savings into order to take a position. A few dollars, and you can get started. It’s okay that you didn’t buy Bitcoin back when it was $1, $200, $5,000, or $25,000. You can still invest in this asset class.
The sooner you realize this, the better.
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.