In August of 2017 our dear friends told us about Bitcoin, also referred to as BTC. At that time BItcoin was selling for $3,000 a coin. Our friends didn’t tell us to buy it, but since investing was a frequent topic of our conversations and Bitcoin kept coming up, we finally gave it some consideration. It was three months later and BTC, the ticker symbol under which Bitcoin is traded on Cryptocurrency exchanges, was already at $6,000 a coin.
Though you can buy partial coins of BTC, like half or any dollar amount actually, there is a psychological draw to owning a whole coin.
That is just the beginning of the psychological draw. There is also the fact that there is a limited supply forever. There is the mystery of the genius person who created it, known in name only as Satoshi Nakamoto. There is the prospect of it becoming the currency of the future and there is the fact that during the last quarter of 2017, BTC was making a rapid vertical ascent going up a thousand plus dollars a day and doing so often.
If you hadn’t purchased a full coin, or many for that matter during this spike, you would have scrambled to buy more as it climbed, each day admiring how smart a move that was turning out to be. This is when Bitcoin was really making its grand public appearance, even though it was already ten years old. Every day you could find Bitcoin in the news. Investors were gaining interest and money was pouring into the crypto market.
Many people purchased in the $15,000 – $20,000/coin range, even borrowing or leveraging money to do so. By Christmas Bitcoin had already reached it’s peak and was descending. If you look at the chart it looks like you took an elevator straight up the mountain ski slope and then were skiing down the hill from the top. A little hill here and there to keep it all exciting and hopeful, if you had held on, you would end up today in November a year later seeing Bitcoin hovering around $6,500.
Had you bought in at the $6,000 mark a year ago and not invested in the elevator going up, you would be up around $500/coin. Not bad. That is an 8.3% gain. Psychologically, since you didn’t get out at $20,000 and wait to reinvest now, you might still feel like you lost those gains you spent so much time counting. But if you believe the hype you will be comforted knowing that your coin is still destined to go up to a million dollars.
Besides the potential investment opportunity, even around the $6,000 price point, even though it might be hard to wrap your head around an expensive stock like Amazon costing around $2,000 and this being 3X that, the real fascination lies in the life changing technology that is intrinsic to Cryptocurrency. Blockchain technology, as it is known, is the most incredible invention since the internet on which it does and will function.
Like my friends, I won’t give you investment advice, but I do advise you to glimpse the future, that I hope we all get to enjoy soon, by educating yourself on Cryptocurrency and Blockchain technology.