The Bitcoin Bubble? Why Optimistic Investors May Have Been Right.
The Bitcoin Wave
Since the beginning of May, bitcoin has increased in value by approximately six thousand United States (US) dollars. When I began talking about my investments in the crypto market, I regularly heard people talking about how bitcoin was a bubble. Everyone thought that bitcoin would pop eventually. However, we could ask ourselves a question that I have been asking for a long time now. What if bitcoin, instead of being a bubble, is a collection of waves? Now that we have had time to watch bitcoin and other crypocurrencies, we who have taken the wave hypothesis currently are in the possession of evidence for our posit. Bitcoin did go down from almost $20,000 United States States dollars (USD) to almost $3,000 USD. But, it has gone back up from almost $3,000 to over $11,000 per coin. As of the time that I am writing this, bitcoin's value is $11,352.90 per coin! If I could see the looks on the faces of ever dissenter now!
On the Rise
If bitcoin ever does reach $20,000 per coin, and the possibility seems increasingly likely at some point in time, then from the time of my writing this until then, bitcoin would have increased by 1.76166442054. If someone invested $10 now, then in our hypothetical future of $20,000 per coin, that investment could be worth about $17.62. That's very speculative, but not apparently impossible. Please remember bitcoin's jumps in the past. The increases were much more insanely large than this, and these said increases made some people very rich. Could this ever happen again? Who knows, but I am not keeping my hands away from such potential. I'm not investing more than I can afford, and therefore my losses cannot possibly hurt me (beyond mild disappointment). Playing safe is still playing after all; the fun isn't necessarily diminished.
The Bitcoin Fear
Perhaps the bubblers are still right; that perhaps bitcoin will still fail. I doubt this - as bitcoin remains the top dog in the world of crypto. However, I accept their posits as a possibility. I always have accepted their views as having at least some validity. I have also accepted that fear is an evil sin. Therefore, I won't be rushing to sell my coins anytime soon. The stock markets do tend to work like waves in many instances. Just look at the Ford Motor Company's shares; up and down, up and down, and up and down. Remember when their shares were over $10? Remember when they were about $8? If a company seems to be stable, then why not wait to sell one's shares for more than the initial investment? Does anyone really believe that bitcoin is going anywhere? And, maybe bitcoin honestly is going to die soon; how many people invest foolishly in more than they can afford to lose? Fear mongering to get individuals away fro bitcoin doesn't fly well by me; I make decisions based on logic and reason, not on fear of loss.
My Final Thoughts
Don't go and do anything crazy. I first invested in bitcoin when its' value was only around $7,000 per coin. This may not be the best time to invest, especially if one hasn't already. However, the optimism that has often surrounded crypto may be justified, if only in this one example. The first cryptocurrency may also be the strongest, at the least for now. And, if bitcoin hits more than $14,000 again, then I will have potentially doubled my investment (if I did sell out at that value). Moreover, we simply cannot say if the coin will ever reach $20,000 per coin. That is unknown, yet not impossible, terrain. I would recommend that we keep an eye on things. There is a multitude of unknowns, and being observant and paying more attention could help us to better understand the future. The past and the present need to be understood for the average person to better understand the future. We live in a universe of patterns. Still, these patterns can be much more complex than at first glance. Knowing this, we should never rush to possibly false conclusions. But, through wisdom and knowing, we can make better choices. This is true for everything we do in life, especially as regards our own futures. The bubblers can have their fears; we should seek after wisdom.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
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© 2019 Alexander James Guckenberger