CRYPTOCURRENCY, BITCOIN, BTC, ALTCOINS, CRYPTO WALLETS, BITCOINS LENDING, BITCOIN INVESTMENTS SITES, BITCOIN EXCHANGES, BUY AND SELL BITCOINS, BITCOIN TRADING,BITCOIN FAUCETS, BITCOIN MARKETS ANALYSIS, BTC PRICE REVIEWS,BITCOIN CLOUD MINING POOLS, CRYPTO MINING HARDWARES, MINING FARM RIGS, ALTCOINS MINING POOLS,MINERS, BITCOIN PAYMENTS SYSTEMS, BITCOIN AFFILIATES, BITCOIN ADVERT NETWORKS,BITCOIN GET PAID SITES, BITCOIN ATMS, BITCOIN DOLLAR PAIR, BITCOIN USD CALCULATOR,BITCOIN REBATE SHOPPING SITES, BITCOIN EARNING REWARD SITES, BITCOIN DONATION/TIP SITE,BITCOIN NEWS,BITCOIN FORUMS,BITCOIN EBOOKS, BITCOIN COUPON
WHEN TO INVEST IN BITCOIN: TOP BEST WAYS TO START TODAY
The question of when to invest in a valuable asset is age-old. Bitcoin and other cryptoassets are somewhat notorious for their volatility and bubble-like boom and bust.
While no one can provide an answer for when to invest in Bitcoin, there are some good benchmarks or waypoints for evaluating Bitcoin’s investment potential.
Time: As mentioned earlier, Bitcoin has been around for a decade. In that time the network has grown to cover the world. The number of active nodes and the number of bitcoin wallets in existence has increased, while the value of bitcoin’s currency has grown from $0 at the beginning of 2009 to several thousand dollars by 2019. (So far, BTC’s all-time was achieved on December 16, 2017, when the price touched $19,665.39).
So in less than ten years, the price of one bitcoin has ping-ponged between $0 and nearly $20,000, making a historic run that attracted a lot of attention to the asset’s underlying volatility. During the past 10 years, bitcoin’s market run has not been linear. Instead, the growth of bitcoin both from a general user perspective and from a market perspective has followed a cyclical pattern of runs and retreats. Ideally, investors secure positions before dramatic market runs and then make decisions about profit-taking at the market peak. This strategy is not only true with bitcoin and cryptocurrencies, but with all kinds of investments and asset classes. So the question about “when is the best time to buy bitcoin” is best answered by trying to figure out where the asset is in the timeline of price movement. Of course, if people knew that then investing would be a lot easier.
There are a few things to consider when trying to figure out bitcoin market timing. These are just for consideration and they are not the basis for any kind of investment decision:
1.
1. There will only ever be 21 million bitcoin ever produced. Now, this doesn’t exactly tell the whole story, because as you might remember from reading earlier, each bitcoin can be divided by 8 decimal places, but the fact that Bitcoin has a set schedule for creation (the final bitcoin will be mined in 2140) and that there is no entity that can change to underlying Bitcoin network numbers means that it is a deflationary currency and that as time goes on it will become more scarce, and likely more valuable.
2. From studying previous technological shifts we know that there are distinctive ways of tech adoption: Innovators, early adopters, early majority, late majority, and then the laggards. This cycle has happened again and again and is particularly applicable to internet technologies and products. Depending on where you think Bitcoin is in the technology adoption cycle should help guide potential investment decisions. While identifying the exact phase of Bitcoin’s trajectory is difficult, by all accounts, the Bitcoin network and the bitcoin currency are still in the pre-mass adoption phase. Important milestones on the technology adoption curve include the innovator phase, the early adopter phase, early majority phase, late majority phase, and then the laggards.
3. Network effect: Bitcoin benefits from a network effect. This effect will impact future growth in two ways. The first impact of the network effect is that new growth fuels future growth. Just like the way social networks grow — new users invite other users to interact with — new Bitcoin users help convert other users so that they can share value over the network. Since Bitcoin’s total addressable market is the whole world, there is really no limit to the potential spread of the network other than basic infrastructure.
4. Competition: Bitcoin’s network effect also works to keep it competitive in the crypto market place. As mentioned earlier, Bitcoin is the oldest cryptocurrency and enjoys a first-mover advantage, but it also has a very active developer community (not to mention its solid design foundation) which means that Bitcoin coins to be number one cryptocurrency by market capitalization. The longer Bitcoin stays in this position, the more it reinforces its dominance. Ethereum is the second-place cryptocurrency by market cap, but it has completely different economics.
Cost averaging: One simple, but timeless, investing strategy is to average into a market when making investments. The basic concept is to make small purchases of the investment spread over a long time. The goal is to spread the purchases over times when the market is up and times when the market is down. This is an especially useful tactic when trying to create a position in a volatile market like bitcoin or cryptocurrencies.
