Everyone asks “should I buy bitcoin”? In December, Bitcoin was red hot and people were mortgaging their homes to jump onboard a rocket to the moon. Recently, cryptocurrency has cooled off and many have left the launch pad, no longer lining up to ride the rocket. The drop in prices has washed out or scared away casual investors looking to “get rich quick”. Those who bought at all-time highs have wrestled with what to do for a couple of months now. Some dumped their Bitcoin or alt-coins for a loss early on, but if you’re still holding – you might feel you’ve been had.
While it is true that if you invested $1000 in December, it is worth about $402 at the time of this posting. However, this article is not about those who jumped onboard at all-time highs only to regret their decision, but more about recognizing FOMO (fear of missing out) and calculating when to buy Bitcoin for the right reasons at the right time. Let’s face it, not many of us even knew about Bitcoin in 2011 – those that did, and invested any amount of money, were considered 100% crazy and irresponsible. Guess what? That is how people turn $1000 into $20 million, but it’s important to realize that for every $1000 that hits, another $100,000 is blown on chances that never pay off. So it is fruitless to regret having missed out on catching Bitcoin early, even if you were exposed to it back in 2011.
The chances you would have held onto Bitcoin – if you had bought some in 2011 – are slim. Most who bought in for pennies sold when it reached $1, or $10, or even $1,000, and were able to do so because people kept buying. Then people continued to buy bitcoin even after it exceeded $1,000, $10,000 – and the price kept going up. A lot of investors cashed out at the right time and made very real money, but the majority saw it more than double in less than 30-days, FOMOed and bought in, then held on hoping for $100,000. The smart ones are still holding on to the bitcoin they bought.
Those who bought Bitcoin back in 2011 did not get rich overnight. It took six years and they had to hold past numerous opportunities to jump ship that, granted, would have been lucrative but nowhere near as much as selling at all-time highs and buying back to remain wholly in the game. They also had to resist the scammers that prey upon investors and do more harm than good to the entire crypto ecosystem. If you buy Bitcoin, it should be because you feel the technology is going to be worth something, not FOMO. Not to get rich quick. That is gambling – and FOMO fuels gambling.
That said, instead of regretting what could have been, start considering what could be. Bitcoin is not even 10 years old, and that’s nothing in investment years. Now, while the price is back to more reasonable levels and growing organically, is the time to bone up on blockchain and crypto to educate yourself. Then look at the various ways to invest – buy Bitcoin or alt-coins, invest in startups, publicly traded ETFs, or learn blockchain development and solve a problem. Create a wallet, buy Bitcoin in small amounts and only invest what you’re willing to lose. Once you understand how the technology works, and the potential it has to still be an amazing investment opportunity, you kick FOMO to the curb and take advantage of what’s very likely to be worthwhile.
The fact is, it is still very, very early to invest in cryptocurrency. Those who educate themselves to become involved and contribute, or make logical investments, will be the “2011 Gurus” of the future as the technology evolves to solve concepts such as efficiency, privacy, transparency, and security. While this is not investment advice, it is an encouragement to become knowledgeable about cryptocurrency. To do so could be the best decision you ever make. More importantly, that FOMO will disappear and you will stop asking “should I buy Bitcoin?”