With so much hype around Bitcoin and how high it is likely to go, have you left it too late to invest in Bitcoin?
Table of Contents
- Bitcoin Acceptance
- Bitcoin Halving
- How High Will Bitcoin Go?
- How Can You Invest?
- When Is The Best Time To Buy Bitcoin?
- Disclaimer
- Is it Too Late to Invest in Bitcoin?
Bitcoin Acceptance
Bitcoin has been a part of many people’s lives since its launch in 2009. But it wasn’t until the approval of ETFs by the SEC (US Securities Exchange Commission) that the finance industry accepted Bitcoin as an asset.
With the US the first country to accept Bitcoin there is a flurry of activity around the world with other countries trying to get ETFs approved.
This global demand for Bitcoin is part of the reason for the hike in price.
Bitcoin Halving
Bitcoin has a unique system to help increase value called the halving.
How the halving works is that all data related to Bitcoin is recorded on blocks of data. Once 210,000 blocks have been filled it triggers a halving of the amount of Bitcoin that can be mined and the amount miners are paid.
It has been estimated that the next halving will happen in April 2024. The current mining of 900 Bitcoins per day will drop to 450 Bitcoins.
The halving creates scarcity increasing value at a time of high demand due to the number of institutional investors coming into the Bitcoin market.
How High Will Bitcoin Go?
This is a question being asked by many ordinary investors with the answer being how long is a piece of string.
In reality, no one knows how high Bitcoin will go. The only thing known for sure is that Bitcoin is finite. Once it reaches the maximum amount to be mined no more will be available.
If we look at other assets – for instance – gold. When demand and price are high, gold miners will mine more gold to meet demand.
However, because bitcoin is finite and governed by the halving, there is no more bitcoin to be mined so Economics 101, supply and demand, suggests the price of bitcoin will go higher.
There are varying calculations on price with economists suggesting that by the end of 2024, it will be worth anything from $100k to $400k.
Yet most of them agree that it will be worth $1m by 2030.
It has been estimated that 99% of all Bitcoin will be mined by 2034. It will take 100 years to mine the remaining 1%.
How Can You Invest?
It is quite easy to invest in Bitcoin through online apps.
For myself, I use crypto.com and have a set amount each week that goes into the app.
Bitcoin allows people to buy very small amounts.
It is possible to buy £10 worth of Bitcoin in each transaction even though, the price is around $65k for a Bitcoin small investors are certainly welcome.
When Is The Best Time To Buy Bitcoin?
Bitcoin is a volatile investment. If you worry about losing money don’t invest.
If you are more flexible and willing to take a risk the best time is now.
Disclaimer
This article is not intended as financial advice. You should always check with your financial advisor.
Karen has been an investor for 40 years and has a wide range of experience with many investment strategies and financial markets. What Karen invests in is not suitable for everyone. Those who do invest may have different results and may lose their money.
Is it Too Late to Invest in Bitcoin?
No, I believe that Bitcoin still offers great investment opportunities for both small and larger investors. Be aware that this is not a get rich investment strategy any investment should be for the long term.
With institutional investors now in the Bitcoin market, Bitcoin is likely to be extremely volatile with big swings in price. Only invest what you can afford to lose.
Bitcoin investing will be around for many years to come and with such a low entry price for purchasing a share of a Bitcoin will offer plenty of opportunities in the future.