Everyone knows that Bitcoin is going crazy and people are currently confused and the common question buzzing around is that is it too late to buy Bitcoin or one should even buy it right now or not.
Well, in this article, we are going to discuss Bitcoin and address the important question: is it too late to buy Bitcoin? In order to understand this, we should first establish some things related to Bitcoin and how much popular it is right now.
What is Bitcoin?
Bitcoin is a form of cryptocurrency and that essentially means that it is transparent and controlled by a decentralized network. It is just like the currency that we use for transactions but there is no physical element involved and it exists only in the cyber world.
Well, if it has no physical element and is not centralized, why does it have any value? You might ask? The reason why Bitcoin has value is that it is useful as a form of money. The value of Bitcoin can be measured by how many people are using it for doing business. Its value comes from people willing to accept them as payment.
Bitcoin has gained a lot of popularity and people have been investing crazily in buying Bitcoins, that is the reason why they have become the most valuable cryptocurrency right now.
Too Late to Buy Bitcoin? All You Need to Know
The Current State
As of now, one Bitcoin is equivalent to USD 46,900 which is about INR 34,17,483. It is crazy, right? The value of one Bitcoin is so humongous. If you ask a normal person, it would be technically impossible for him to buy Bitcoin right now because of its current value.
What Makes Bitcoin So Special?
You see that unlike gold or a national currency, Bitcoin is not a physical commodity, and one of the reasons what makes Bitcoin so special is its popularity. Its popularity is also the reason why it is valuable, because it is popular, people trade in bitcoins.
Also, Bitcoin is decentralized and limited. So there is a cap set on total Bitcoins and that limits how much the currency can devalue through inflation. It is similar to a social media platform, the more users it has, the more popular it is. Thus increasing its value.
Negative Factors
Well, first of all, Bitcoin is at a crazy peak right now and people for anyone who has a little bit of knowledge of investing knows that it is not good to invest in a thing when it is at its peak.
It is actually too late to buy Bitcoin right now as it is crazy expensive and the other thing to notice is that the value graph of bitcoin has been crazy over the years too.
Bitcoin saw a surge in its value in 2017 and 2018, then things cooled down a bit in 2019 and were around USD 7000 in December of 2019. Then in 2020, it gained popularity back and it has been on surge ever since.
The cryptocurrency market is prone to high fluctuations in value and everything pretty much depends on the popularity of the cryptocurrency.
Bitcoin is a trend that is very popular right now but we know by history and track record that even the best of trends lose value over time. Bitcoin is no exception to this, a new cryptocurrency launched by some popular figure, and boom all the popularity of Bitcoin will go away.
In general, it is very risky to buy Bitcoin right now as its value is mostly dependent on popularity and it is at its peak right now.
The American businessman and investor Peter Schiff has put this in a very nice way in an article, “People who got it years ago, even people who got it at the beginning of the year have the opportunity to cash out and make a lot of money. But people who are buying it at these prices or higher prices are going to lose practically everything.”
There are many negative factors to Bitcoins, they’re expensive, can’t be used as money, and they are too much vulnerable to only one factor that is popularity.
So for people who already have Bitcoins or have invested in Bitcoins a long time ago are the only lucky ones and it would not make sense for anyone to buy Bitcoin right now.
Will there be an Ideal Time?
So that now we have established that it is not the right time to buy Bitcoin the other question that comes to mind is will there be an ideal time in the future to invest in Bitcoins?
Well, I would personally say no, and let me explain why. First of all, if we look to find an ideal time in the future to invest in Bitcoins, that will be when its value will come down low, right?
You see that is where the problem will also start, the only reasons its value will come down could possibly be the introduction of a more popular cryptocurrency or loss in the popularity of Bitcoin.
In both of the cases, even if you manage to buy Bitcoin(s), chances of them getting at a high value would be very less and that will only take you to loss.
So yes one can invest in Bitcoins in the future when they will come down in value but that will be too risky and chances of them making any profit to the individual will be less likely.
If you really want to buy invest in Bitcoin then the most ideal time will be when no one is talking about Bitcoin, which means when it will not be a thing in pop culture.
Closing Phrase
As of now, Bitcoin is too wild and risky to invest in. For an average person, it can be very dangerous to invest such a big amount in Bitcoins only to realize that their value might go down later. It is a risky thing, on one side you invest today and the value might even go to USD 100,000 for one Bitcoin or one can lose a big fortune.
In simple words, it is not the right time for an average person to invest in Bitcoin and it is actually too late to buy Bitcoin.
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