Bitcoin …A Rare Second Chance For Huge Gains ?
Last year we saw a huge rise in Bitcoin of 138%. January 1st 2021, the price of Bitcoin was $29000, it rose to $68500 by 11th of November 21. Since then, we have had the inevitable correction with profit taking and accumulation of big players again back down to the $42000 range.
Needless to say, those who bought at the $68500 top are feeling a little deflated by jumping in at such elevated levels. However, the past 10 years has shown that even if you were unlucky enough to buy at the top, after 4 years you could still see at least a 100% return on your investment.
Based on the above hypotheses we should see Bitcoin at least around the $135000 mark by November 2025.
My own analysis however shows that by the summer of 2022 we could see once again the price of Bitcoin at all-time highs once again.
What does this mean for people who are still to comprehend the assets potential rise to huge levels over the coming months and years?
With prices at the time of writing this (January 14th 2022) at $42000 the opportunity for significant gains verses losses is huge!
REMEMBER ONLY 21 MILLION BITCOIN WILL EVER BE MINED!
All investments carry risk reward ratios. Over the past year we have discussed this in depth. Last month we wrote about how the big institutions (the smart money) has always focused on “buying the dips”
This hypothesis is very difficult for most people to grasp when it comes to investing. We see a stock rise and we don’t want to miss out. We buy in to join the party only to find the price reverse once the big players take their profits. This can start a sell off that brings the price back down. It then reaches a point where we are staring at a red bag which if sold would realise significant losses.
If, however we wait for the significant dips in the market this should be an opportunity not to be missed as we can then ride the wave once it starts again. This is the point we are at now, in my view!
In my free book we talk about DCA (dollar cost averaging) in this way if the price continues to go lower, we effectively lower our entry price. So once the price does go higher with big institutions once again piling in with boatloads of cash, we also profit.
If you want to secure a future for yourself and your children then using some spare capital to invest in Bitcoin or other crypto assets, then in my view this could be a wonderful time to start!
If you are reading this during February 2022, (3 weeks after I wrote the article), then you may already be seeing Bitcoin back around the 50k level. However, this would also be a good place to start the DCA approach. Once we get back to 60k level I would wait again for another significant dip to 50k before joining the party again.
We now have crypto credit cards allowing us to spend our crypto while earning 1% cash back rewards on all purchases. Big players like PayPal, MasterCard and Visa are all involved in new digital currency space. In September we saw El Salvador adopting Bitcoin as legal tender. We have a healthy 10% APR on holding stable coins linked to the price of the pound dollar and Euro etc.
We have never had a better opportunity than now to become financially secure in the face of government fiscal incompetence and resulting uncontrollable global inflation!
Eventually we will see worldwide digital money flows. The old system of uncontrolled money printing COULD BE replaced by some form of digital currency like Bitcoin. This means we are on the cusp of a global shift which means the future is bright for those early adopters of this relatively new and exciting technology.
The people who make the most gains in any investment are those who front run an emerging market. They are able to see the eventual mainstream adoption being the norm rather than the exception. We are already at around 7% adoption. Once this gets to 12% adoption the rise will be unstoppable. We have seen this with Amazon, Apple, Facebook (now Meta), Microsoft, Uber and Air B&B etc.
For a detailed breakdown of how I have invested and what approaches I use along with tips and lessons I have learned since I started with crypto assets, then email me for my eBook which is still free for readers of the Chronicle.
All investments carry risk. Prices go up as well as down. Only invest money that you could afford to lose.