There has been a lot of talk over the last year about Bitcoin. Rightfully so, the crypto currency has literally taken off like Elon Musk’s Space X Falcon 9 launch vehicle. With Bitcoin prices surging more recently , it only means that thousands of people are spending there time figuring out how to start buying Bitcoin.
The Bitcoin History / Stats – Are you going to regret buying Bitcoin?
Back in early to mid 2010 the first real world transaction occurred when a man named Laszlo used ten thousand Bitcoins to buy pizza! Not even a full week later the price of bitcoin went up to about 10 cents CAD. This was a 1000% increase in the value of Bitcoin and marks a very important step for the crypto currency. After this date, Bitcoin’s value continued to increase as its popularity and demand increased. More and more companies were accepting Bitcoin as a form of money.
Here is a look at approximate price during a 6 year period. Prices had very large fluctuations each year.
2011 – $30 CAD
2012 – $15 CAD
2013 – $750 CAD
2014 – $550 CAD
2015 – $450 CAD
2016 – $ 650 CAD
During these several years, you can see the uncertainty of the value as it jumped around all over the place. 2017 is really the year that changed everything. This is where bitcoin surged from about $1285 CAD to
$22 661. This is a 1763% increase!
Emotions Strengthen as more people are buying Bitcoin
That just it. When something booms it seems that everyone and their dogs want a piece of the pie. Latest news has it that we can also include cyber crooks as trying to hack there way in to the pie. This is what we know as Fear of Missing Out. AKA FOMO.
In times like these many people do not even give the risks involved a second thought. What seems as the greatest investment of 2017 will continue right in to 2018. What is certain is no one knows for sure how long this craze will last. As long as there is expanding demand for the crypto currency Bitcoin, the price will go up.
As someone who appreciates airplanes, I know what goes up, must come down. This is for Bitcoin too. As it enters this extreme phase of exceptionally high volatility, there will be investors who also lose big. Don’t let this be you. If you decide that you have bigger cojones then Elon Musk and want to risk everything you got on crypto cash, you better assume you can and may come out with nothing but your underwear.
Should I choose to buy Bitcoin?
Remember, following Rule 1 of the 9 mechmoney investing rules, don’t take the advice of anyone. What you should do, should be based on your own research, your own risk management plan and what your resource funds look like.
My recommendation would be to never enter a one asset strategy. This is simply a recipe for disaster. If you are planning on buying bitcoin and have decided this type of investment is for you, only use funds that you do not require. This way if it all disappears you can say you tried, probably should have invested the money in to long term investments and you won’t make that mistake a second time. Right?