Bitcoin is on the move. After settling around $10k since August, it finally woke up and started to run ahead. With Bitcoin soaring into $13k this week, you may be wondering if you should start investing in it before it’s too late. The FOMO is starting to set in and all you see are dollar signs and expensive cars in its future.
The main goal is to get rich, right? So is investing in Bitcoin the right path then? So many questions and so little responses.
What you should be asking yourself is will Bitcoin continue to climb or will it fall back down like it did in August? With so many now migrating to crypto, it seems likely we’re going to keep moving up like the Jefferson’s. (Get the reference?)
What Is Bitcoin?
What a great question, thanks for asking. Introduced in 2009 by a mysterious person or group of people under a single pseudonym, the digital currency is an exchange through its own payment network. It’s a decentralized digital currency limited to 21 million digital coins. No banks or single entity control the market and is its own boss.
It’s technology has been slowly integrating itself into our everyday life, from payment methods to online security. Even companies like American Express and IBM have fully embraced this technology, called blockchain, as it’s future.
History of Bitcoin Pricing
Bitcoin has a very volatile past. The digital coin quickly grew from a couple hundred dollars to almost $20k, making many people rich. The currency seemed to skyrocket to its all-time high, but just like every volatile asset, it dropped down to around $4k within a year. If you didn’t sell off at the top, you would have lost quite a bit of potential profit.
As of 2019, Bitcoin quickly jumped back into action, making its way up to almost $12k, but fell back down into the $5k range once the Pandemic happened. People freaked out during this time and saw a spike in selling off their assets. People wanted more security and cash on hand to better prepare themselves for such uncertain times.
Luckily, this was on temporary and we are seeing a steady rise in the price of this digital asset. More and more people are flooding into this market, seeing the potential of this currency and its gradual move into a more mainstream spotlight.
Fast forward to now, Bitcoin has worked its way back up to close its prime with no signs of slowing down.
Future of Bitcoin
The future is looking bright right now for Bitcoin. It just hit $13k this week and doesn’t seem to be slowing down at all. The digital currency has been the center of attention in recent news, from Square investing $50 million into Bitcoin, to several billionaires predicting a $1 million future value, people are only hearing “invest now to become rich.” Most recently, Paypal came out with a new service, allowing the buying, selling and holding of digital currency.
More and more positive news is coming out bumping the price up. But worry not, the growing stability of this coin is really starting to show. There was plenty of negative news as well, from hacking and other bad news. But that didn’t even seem to shake the crypto world. The price didn’t even look back and continued climbing its way up.
Analysts have seen little resistance on its way past $13k and are very bullish on its future. But let’s take a step back. There is plenty of news and predictions about the future pricing of Bitcoin. From being worth $100k to $1 million, no one really can accurately predict where it will stand in the coming years. But with so many companies coming forward and investing in it, I’m feeling very confident.
I have no predictions to add to what is already found online. Sure, I would love for Bitcoin to hit $1 million, but I’m holding out for a more realistic number, whatever that may be. I’ll be ready to take some profits once it hits some higher thresholds.
Diversifying Your Portfolio
A more secure way to build a solid portfolio to carry you to higher values is by diversifying your portfolio. This may come to a surprise to you, but there are more cryptocurrencies than just Bitcoin. Don’t get me wrong, Bitcoin is the granddaddy of all cryptocurrency and is the one standing in the spotlight. But there are plenty of other coins you should add to your crypto portfolio.
If Bitcoin is the digital gold, Ethereum is the digital silver. It’s underlying technology has been integrated into so many companies like the money transferring from American Express and other companies. It’s growth is continuing to climb and has a future as bright if not brighter than Bitcoin.
Some even predict it will overtake Bitcoin, but I’m not holding out for that just yet. I’m just looking for coins with a solid foundation and a profitable future.
There are plenty of other coins that offer strong stability, called stablecoins. I know, very creative with the naming. Coins like Ripple (XRP), which is backed by the US dollar help mitigate the volatility that Bitcoin offers.
Final Thoughts
Bitcoin is skyrocketing in price and it has a very bullish future. I’m trying to fight back my FOMO that it will be too late before I can really jump in, but I know it will be okay. Cryptocurrency has really started to become mainstream, and many companies and Billionaires are starting to see it as well.
Like I said, I would love if Bitcoin hit $1 million, like some people have predicted, but I’m aiming for a more down to Earth prediction that will get me one step closer to becoming financially independent.
If you build your portfolio just right and get in at the right time, you can see a million dollars, no problem. With Bitcoin hitting $13k, you will likely need higher starting capital to get there, but the possibility is definitely positive.
I’m planning my portfolio to be about 10% of my total net worth. It’s a bit higher than professionals may recommend, but I believe in the future of crypto and I’m ready to see it through.
To close, I’m no financial advisor. Please talk with a professional and do your own research before jumping into cryptocurrency. It has a great future ahead, but it’s still very volatile. Don’t invest more than what you can afford to lose.
