Every single week in our WhatsApp group, I do get funny questions about Bitcoin. Just like the one below👇.
Questions like this are exactly what every newbie want to know before using their hard earn money to buy Bitcoin.
You see, Bitcoin price won’t just go up overnight. It will take time.
Even those who bought at $1 in 2011 had to wait 9 good years before the price stabilizes at $10,000.
But why did they purchase Bitcoin back then?
Because Bitcoin is like a “Virtual Real Estate“, or literarily a “Digital Gold“.
It’s the first ever digital asset that’s truly limited in Quantity. The total supply that would ever be released is 21,000,000, and once it’s reached, neither me nor you could print/produce more of it.
Consequently, if Bitcoin keeps following this trajectory that it’s truly limited, the price will appreciate over the long term due to more people adopting it as a means of exchange and store of value.
However, if there happens to be a back door exit with Bitcoin, and the total quantity can now be increased(like the way some fake Cryptocurrency/Altcoins did), then most people will sell off and get out of Bitcoin. I will get out as well.
Moreover, the Bitcoin network is the largest computer network in the world. it’s getting extremely difficult to be able to hack as every single day passes.
Let’s look at how it was possible for someone to buy Bitcoin at $1 in 2011 and held till $10,000 today’s price.
The early adoptors were able to do this simply by buying gradually with little money and holding it for long.
Some only used $100 and forgot about it, and today it’s worth big money.
Interestingly, those that bought with huge capital in the early days did sell off immediately when they gained 10x their investment capital. And as a result of selling early, they missed all the 500,000%+ gains they could have gotten if they waited.
So my point is that don’t think the little money you’re putting into Bitcoin can’t grow big if you buy and hold on to it.
It surely can, and if it doesn’t, it’s still a little investment. You didn’t loose big.
The best certainty that the price of Bitcoin will keep rising is its limited supply, and its rapid adoption as medium of exchange and store of value.
So far we keep moving in the aforementioned trajectory, Bitcoin should increase in price.
Note: There will be short term price manipulation in Bitcoin but it doesn’t really matter unless you know how to profit from it.
If you’re a good trader, you could make money from the upward and downward swing in price.
What do you think about this article?
Feel free to share your thoughts in the comments section below.
And until next time my friend, keep learning 📚.
You may also like to know the top 5 ways to buy Bitcoin in Nigeria