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Is It Too Late to Invest in Bitcoin?

Last Updated: December 1, 2021

Is it too late to invest in Bitcoin? In this post, we will find out if bitcoin has touched its all-time high or it’s still viable to invest in.
Is It Too Late to Invest in Bitcoin?
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Bitcoin or any other cryptocurrency is relatively fresh for many people. But in recent times, especially with the pandemic, many people have come to know and learn about it. 

In this post, we will find out if bitcoin has touched its all-time high or it’s still viable to invest in.

The Chargesheet Against Bitcoin

Many people who know about cryptocurrency, particularly bitcoin, think there is no point in investing in bitcoin. Experts say that bitcoin doesn’t do anything special that was not achievable before it.

They also say that it doesn’t have any intrinsic value. Furthermore, it is dirty because criminals can use it, and it has emissions. 

Bitcoin’s charge sheet is pretty long. Many people do not like its hyper volatility. 

However, a few big investors dominate this market, and they are the whales who can shift these prices at will or even a single tweet, as Elon Musk has stated.

Still, Bitcoin Has Made Its Point

Bitcoin has made its point with the harshest critics despite all the negativities as its market has grown to over $1 trillion. 

Bitcoin is the biggest cryptocurrency of them all. It has survived the derisions and scorn that many economic and finance experts from Warren Buffet to Nouriel Roubini say that even the Flintstones have a better monetary system. 

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Source: https://knockaround.com/blogs/journal/is-it-too-late-to-invest-in-bitcoin 

Bitcoin has also survived the regulatory pressure and clampdown from China, Russia, and Europe. As a result, many bitcoin miners have to leave these countries and work from abroad.  

Why Do People Think It’s Too Late to Invest in Bitcoin?

Besides the crypto’s volatility and its traits to be useful for criminals, some of the primary reasons for not investing in Bitcoin are: 

Bitcoin

Governments Cracking Down on Bitcoin

One of the great fears for cryptocurrency markets has always been that governments across the globe will shut them down, rejecting their acceptance and production. And this time is already here. 

Many countries across the globe, especially China and some countries in Europe, are cracking down hard on bitcoin miners and bitcoin trading.

It happened in May 2021, and it has brought a downfall in bitcoin prices. But according to some experts, it is because China wants to see its own digital currency flourish. 

Other countries like Singapore, Iran, and Estonia have also cracked down on bitcoin. If more and more countries began to start these crackdowns, bitcoin or any other cryptocurrency would not survive for too long. 

Crypto Has Gone Down from Its Recent Heights

If you think the crypto market is just like the stock market, this is the best time to purchase cryptos because they are on sale.

On November 12, 2021, it was much closer to $62,000. Other cryptocurrencies fell even more or by the same amount. 

But bitcoin is still high compared to its lows in September, which were around $40,000. However, it is still down by a full 10 percent from its all-time high, which it reached very recently at the start of November 2021, before it fell. 

The history of bitcoin indicates that such big drops are not unusual. And even with these lows, the cryptocurrency has managed to climb new heights. 

So, if anyone were curious about bitcoin a few weeks back, you would have a good chance of dipping your toes into the market with the current sell-off. 

Crypto Will Be Zero

According to skeptics, crypto is an asset that has zero store value. It also has no barrier to entry, and there is no value as an exchange currency. Therefore, it is only a speculative asset and has no long-term viability that a true asset has. 

Experts like Jeff Schumacher, the founder of BCG Digital Ventures, believe it is a superior technology. However, it is not a currency because it is not based on anything.

Some experts like Dennis Gartman, a famous investor, also say that if central banks refuse to give up their monopoly on monetary policy, it will cause bitcoin to plunge to zero. 

According to John Paulson, a hedge fund tycoon famous for making $20 billion when he predicted the house market fall in 2008, cryptos will be worthless in the future no matter where they are trading.

When exuberance wears off, or their liquidity dries out, bitcoins will end up being zero.

What Does History Have to Say About It? 

In 2021, BTC broke through its all-time high and set new records. At the start of the year, it was $30,000, and in April 2021, it reached $64,000.

Recently, in October, it reached $67,000, showing that it has the potential to go even further before the year ends. 

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Source: https://www.thelondoneconomic.com/business-economics/is-it-too-late-to-invest-in-bitcoin-263584/ 

Now, these dramatic price movements are pretty daunting for new crypto investors. Many people think that they might have missed the boat.

But everyone has different circumstances, and before investing in bitcoin, one must assess their financial positions. Bitcoins are still accessible for many. 

If you plan to hold BTC from five to ten years to even till retirement, is it going to matter whether you purchase BTC at $30,000 or $60,000? Therefore, you are investing in these coins because you expect them to grow even further with time. 

image 1
Source: https://www.finder.com/is-it-too-late-to-invest-in-bitcoin 

Follow that Trend

If you follow the trend, you will see that the trend is always going up with a few troughs in between.

For example, in 2013, BTC’s price was around $1,200, and a downturn from there would keep you under the water for the next three years till breakeven.

In 2017, you gained 16 times more as the price went from $1,200 to $20,000. Suppose you bought at an all-time high in 2017 for the next three years until December 2020.

It again gained three times more, and the October 2021 rally has only begun.

We are only looking at the bigger picture here, using the tops of cycles as measuring sticks here. There are some other factors involved here too. 

Macroeconomic Outlook

Macroeconomic

Inflation

Governments throughout the globe are spending, which results in price spikes on all commodities. And this trend will continue, and our money will have even less purchasing power in the coming future.

As a result, it can spike out interest in bitcoin, which can protect us against inflation.  

Bitcoin Traded Funds (BTC ETF)

A Bitcoin trading fund has been announced recently.

Accredited institutional and retail investors who have been underweight for many years to find some ways to handle the risk associated with this cryptocurrency have found a new opportunity to set off risk using these traded funds. 

These ETFs have already brought in a wave of more investors, with over $1 billion traded on the first operational day.

Gold has also seen an increase in price by over 400 percent since gold-backed ETF was introduced back in 2003. And they keep on saying that bitcoin is Gold 2.0.

BTC Adopting Countries

Many countries have been adopting BTC recently. El Salvador is the one that has passed a legal tender for cryptocurrencies in the country.

It can put pressure on other nation-states to develop their own strategies on bitcoin as this cryptocurrency becomes popular. 

Paraguay, Ukraine, Brazil, and other countries have also unofficially announced their legal tenders similar to El Salvador. So, it is another trend that you need to watch out for. 

Lighting Network

Lighting Network is a scaling solution created to make daily payments with bitcoins cheap and quick. And this year, it has seen tremendous growth at an exponential rate as it brings bitcoin to the general public. 

Potential Risks

But with all the upgrades and excitement around bitcoin, it is critical to step back and examine any potential risks.

The primary issue that BTC might have to deal with in the coming months or even years is all those legal challenges from governments worldwide. 

Regulators will push and develop new regulations to tackle this cryptocurrency. It could result in KYC (know your customer) regulations prohibiting certain entries in the market.

But not much concerning has happened as of now. But it doesn’t mean that it will not happen. 

So, Is It Really Too Late to Invest in Bitcoin?

You might have heard too much against Bitcoin by now. But there are some believers in this cryptocurrency.

According to Cathie Wood, CEO of Ark Investments, bitcoins will hit $500,000. She thinks that asset managers will allocate up to 5 percent of their portfolios to these cryptocurrencies. 

As per two researchers, Dr. Ross Stevens and Greg Cipolaro of NY Digital Investment Group, the increasing fundamental demand and fixed supply are the two compelling reasons institutional investors invest in bitcoin.

Stevens and Cipolaro are referring to the point that Bitcoin supply is limited to 21 million coins

It is better to develop a long-term strategy when investing in bitcoin. It might look pretty expensive investing in bitcoin today, but if these trends continue to occur, you might be in for even higher prices. 

Written by Jason Wise

Hi! I’m Jason. I tend to gravitate towards business and technology topics, with a deep interest in social media, privacy and crypto. I enjoy testing and reviewing products, so you’ll see a lot of that by me here on EarthWeb.