Is it Too Late to Invest in Bitcoin?

This is an important question, that people have asked since the inception of Bitcoin, back in 2009, is it too late to invest in Bitcoin?

Is it Too Late to Buy Bitcoin?

Before we get into answering this question, let's see what Michael Saylor, the CEO and co-founder of Microstrategy has to say:

So, what do you think of Michael Saylor's take on whether it's too late to buy Bitcoin?

Some Factors to Consider:

To decide whether it's too late to invest in Bitcoin, it's important to consider some factors before considering investing in Bitcoin:

• Risk Tolerance: Bitcoin is known for its volatility. Are you comfortable with large swings in the value of your investment?
• Investment Horizon: Are you looking to hold onto the investment for a long time (say, 10 years), or are you hoping to make a quick return? Cryptocurrency investments, like Bitcoin, tend to be better suited for long-term investment horizons.
• Understanding of Cryptocurrency: It's generally not recommended to invest in something you don't understand. Do you understand how Bitcoin and blockchain technology works?
• Diversification: As with all investing, it's generally not a good idea to put all your eggs in one basket. It's better to have a diversified portfolio of investments.
• Regulatory Risks: The legal and regulatory landscape for cryptocurrencies is still developing and can vary greatly by country. Changes in this landscape can greatly affect the value of cryptocurrencies.
• Alternatives: Are there other investments you've also considered that might help you reach your financial goals?

What is Bitcoin and when Was it Created?

Bitcoin is a digital or virtual currency, also known as cryptocurrency. It was created in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto. The aim was to create a decentralized digital cash system, free from control or manipulation by governments or traditional financial institutions.

How does Bitcoin Work?

Bitcoin transactions are recorded on a decentralized public ledger known as a blockchain. The blockchain is maintained by a network of computers (known as nodes) that validate and record all transactions. These transactions are grouped in blocks and added to the chain, hence the term "blockchain".

What is the defining feature of Bitcoin?

A defining feature of Bitcoin is its limited supply. There will only ever be 21 million bitcoins. This scarcity is built into the system by Nakamoto's original design.

Bitcoin's value has seen significant highs and lows since its inception, and it has sparked much debate about the future of finance and money. Despite the uncertainty and volatility, Bitcoin has spawned a global movement and inspired the creation of thousands of other cryptocurrencies.

Price History of Bitcoin

The price history of Bitcoin has gone through various significant events and cycles since its inception in 2009.

Here's a high-level summary of its historical price activity. Please note that the prices can vary depending on the data source used, and all figures should be considered approximate.

2009-2010

Inception - Bitcoin was basically worthless in terms of traditional currency. There wasn't a dedicated exchange where one could trade Bitcoin for fiat (i.e., government-issued) currency until 2010.

2010-2012

Early Trading - The first known Bitcoin transaction occurred in May 2010 when 10,000 BTC were traded for two pizzas, which were worth about $25. By February 2011, Bitcoin achieved parity with the US dollar, making 1 BTC equal to $1.

2013

First Major Peak - In April 2013, Bitcoin reached a value of approximately $260 before a significant crash to around $50. Later that year in November, Bitcoin had a more sustained rally to just over $1,100.

2014-2015

Decline and Stabilization - Following the late 2013 peak, the price steadily declined throughout most of 2014, reaching a low of around $200 in early 2015, and remained relatively stable for the rest of the year.

2016-2017

Bull Market and All-Time High - Bitcoin saw gradual growth throughout 2016, but it was 2017 when it truly had a breakout year. The price skyrocketed, reaching nearly $20,000 in December 2017.

2018

Market Correction - Following the late 2017 high, Bitcoin's price dropped significantly throughout 2018, eventually hitting a low of around $3,200 by December.

2019

Recovery - In 2019, Bitcoin recovered to a high of approximately $13,000 in June before falling back to around $7,200 by the end of the year.

2020

New All-Time Highs - Despite the global economic impacts of COVID-19, Bitcoin's price rebounded and grew consistently throughout 2020, breaking its 2017 all-time high in December 2020 and reaching approximately $29,000 by the end of the year.

2021

Continued Growth - In 2021, Bitcoin reached an all-time high of over $65,000 USD in November. This price hike was largely tied to the launch of a Bitcoin ETF in the United States. Other notable events in 2021 that influenced Bitcoin's price include Tesla's announcement in March 2021 that it had acquired $1.5 billion worth of Bitcoin and the IPO of Coinbase, the biggest crypto exchange in the U.S., which fueled mass interest in the cryptocurrency.

2022

Recovery - By the end of 2022, the market had changed noticeably. As of May 25, 2023, Bitcoin's price had fallen to roughly $26,338.95, after another crypto exchange, FTX, filed for bankruptcy.

Here are some notable price points from 2022:

• October 2022: $20,623.87
• November 2022: $16,441.98
• December 2022: $16,604.02

2023

Runup - At the beginning of 2023, the market has seen a continued runup in the price of Bitcoin. Here are some notable price points for 2023

• January 2023: $22,840.39
• February 2023: $23,518.12
• March 2023: $28,041.12
• April 2023: $29,217.94
• May - December: $42,800

2024

The run-up phase of the market cycle continues into the early part of 2024.

• January 2024: $43,000
• February 2024: $50,000 (February 15th)

What are the Future Price Predictions for Bitcoin?

Some well-known investors and analysts have made some price predictions for Bitcoin, including:

• Tim Draper, a long-time crypto supporter, has predicted Bitcoin could reach $250,000 in the middle of 2023. He believes that the crypto market has yet to hit the retail market where women control 80% of spending.
• Alistair Milne, the founder of Altana Digital Currency Fund, predicts that Bitcoin's price could surge to $45,000 depending on what happens with inflation. He also suggests that prices could hit massive highs of $300,000 by the end of next year.
• Carol Alexander, Professor of Finance at Sussex University, predicts a $30,000 Bitcoin price increase in the first half of 2023, eventually hitting $50,000 by the end of the year. Her reasoning centers around 'crypto whales' who account for roughly 15% of the entire Bitcoin supply and have the potential to significantly influence the market.

Is It Too Late to Buy Bitcoin? - The Verdict

Summarizing all of the points raised in this article, is it too late to buy Bitcoin? In my personal opinion, I don't believe it's ever too late to buy Bitcoin.

It's a limited supply digital asset that will likely continue to do up in price over time. That said, it's important to state that Bitcoin is 'mature' - it has already maxed out its maximum growth potential.

While it's likely that the price of Bitcoin will continue to increase, there are many other cryptocurrencies that offer much better growth appreciation - such as small-cap altcoins (also known as Low-Cap Gems).