Before providing a straight YES or NO answer, I would like to tell you I am not from the future, absolutely no idea what it will turn out. Also, I am clearly not Warren Buffett to blur away all his comments about bitcoin with his charm a few years ago. However, I will tell you what comes up to my mind getting asked this question. So, here we go:
1. The question is How long?
If this is a short term investment, I would rather opt to other Altcoins than Bitcoin itself. In the past few months, Bitcoin has been up relatively quick, therefore I think it’s not healthy, and there should be *somewhere* a correction. At the time of this article, the price is $10,381, so I think the best (or better) time to buy has passed. I felt more confident if it was about $8,000, I am quite skeptical if it ever comes under $5,000 again.
Back to the point, short term I would think some Altcoins are more of the way to go, still which altcoin(s) still remain the question, which I will go deeper into in my next article.
2. Like wine, I think being old is good! And The 1st is a big advantage.
Bitcoin now is 10 years old, being a new asset class compared with gold thousands of years ago, and fiat when we started having government, it’s kinda young. But compared to some other coins with the life of a few months, Bitcoin is old. Of course, we have something in between like ‘electronic money-mobile payments’ etc…but still backed (or not!) by central institutions.
But it stays alive!
For a reason
It’s the first! And the very first idea of revolution.
The real power lays where the money is – that’s what I believe.
Maybe 2019 is the last year we can call ‘bitcoin is a good investment’, given how many eyes on cryptocurrencies recently. A lot of projects build on blockchain, and personally I think ‘crypto’ is the future, everything needs money, doesn’t it?
3. Stay cool
Yes, I know it’s easier said than done. But it’s the key, for crypto investments, be patient!
Trust me, I know how it feels when seeing the prices dump and make such an endless red candle. Once you are holding onto something, it’s hard to not get bothered by the daily price swings, but it’s the key. See it as a long(er) term investment, and stick to the #1 rule: “don’t invest more than what you can’t afford to lose”, that would save you from multiple times having heart attacks.
You can, in the other hand, invest in some other traditional channels: real estate, stocks… to have some other ways to liquidate into fiat when needed, and also some stable passive income.
4. Problems are being worked on!
There was at times I was more skeptical about crypto, because of their issues regarding the #fee and the #speed. Good news is they are being worked on. We have a lot of talents looking into the industry and try to improve it, bring it more into the mass population.
Do you know how was internet like in the 90s? It was no way near, and nothing looks like it’s now. You would need to be a real nerd to use internet back then. It took a real effort to send an email, and now, it’s the matter of one single click. Being in the crypto space for the last 5 years, I see crypto and blockchain have much more potential.
5. The demand keeps raising, the market keeps expanding
Back in 2016 and early 2017, the market in Vietnam was much smaller, it was hard to buy a few thousand dollars worth of bitcoin without moving the domestic market, and it would take a long time for the trade to get settled. Now, a deal of $1 million can be done within 30 mins, and without moving the market. It’s impressive, isn’t it?
There are exchanges and related services opening up everyday. The trading volumes are also increasing. Bitcoin has its max cap, so when more people got motivated to have hands on bitcoin – investment 101 – price can only go up. At least as a long term investor, I have my faith.
6. The industry is more mature
I say so based on the price.
It is still volatilize, with the range I think much improved compared with the past.
And the phenomena.
The premium and discount between markets. If you have been in the arbitrage business, you know what I am talking about. There were times when we have 30% difference on price on markets.
Now we don’t really have it anymore, and I don’t think we could see such a big gap ever again. Simple because we have enough people joining the market, that you can always find someone to meet your price. No chances for cutting peoples throats, no more monopoly!
All of the above give me the comfort investing into cryptocurrencies (bitcoin in particular). But again, I have no crystal ball, so take my words with a grain of salt. I hope you google that question only for finding an ally to what you’ve already got the answers 🙂
And again, don’t invest more than what you can’t afford to lose.