Is it too late to buy Bitcoin and what about Litecoin & Ripple?
Is it too late to buy Bitcoin?
Is it too late to buy Bitcoin? Today, the price of a Bitcoin is heading towards $20,000. Considering that you could buy the same thing for just $1,000 at the very beginning of 2017. You can be excused for kicking yourself a little bit right now.
It goes without saying, if you ‘d purchased $100 worth of the cryptocurrency at that time, you ‘d have nearly two grand today.
The Bitcoin thrill ride has become even crazier over the recent month or so, with Bitcoin increasing in value by 200% since the beginning of fall.
Many people are now emailing me and asking is it too late to buy bitcoin. A lot of people are claiming they don’t want to miss the boat and want in at the start of this journey. However, what you must understand is, this is not the start – this is more like the middle. Bitcoin is over 10 years old.
Getting in early is a concept that has already gone.
So, Is it too late to buy Bitcoin?
That’s almost impossible to know. A friend of mine was offered 3 bitcoins for $100, five years ago. He turned it down and now he is kicking himself. However, at the time I made a prediction that the currency would go nowhere.
Today novice investors are seeing the profits, getting jealous and making predictions that Bitcoin is going to make them rich. Nobody has the evidence to claim that!
” It’s difficult to recognize or antcipate when the bubble pop”
It’s difficult to understand what will happen to the investment over time. Will the price will keep increasing, it’s hard to even guess. We also have no concept if betting that the price will decline, will be better than gambling that the price will continue to go up over time.
So, sadly, the unfulfilling answer is: no one knows.
What is Bitcoin?
In succinct summary, it’s a cryptocurrency. The phrase “crypto” is a reference to cryptography, which is a word used to label the innovation that lies at the root of the system, blockchain.
This electronic currency has worth in part because some online stores and a handful of retail outlets will accept Bitcoin as payment. It has value also, partially because it is rare (there is a restricted inventory), and in part, because you can exchange Bitcoin you own for fiat funds through an exchange such as CEX or eToro.
But what fans like about Bitcoin, and other digital currencies just like it, is that it’s not governed by any government. Equally, there is no corporate entity behind it, like a bank. It’s a peer-to-peer, decentralized online connection.
It was developed as something that might be completely censorship-resistant as well as operating within a decentralized system. The downside to this is, if you have a problem with your funds, there is nobody to turn to for help.
No centralized system
In other words, you don’t need PayPal, Visa, or a bank for it to function. But when things go wrong – you equally don’t have those people to turn to either.
That decentralized software system is key, as is a method behind it all called blockchain.
Basically, no one computer or person controls the system. The network protects itself by the vast number of computers connected to it.
Is Crypto A Good Retirement Investment?
Bitcoin is extremely unstable and is therefore not a traditional way to create a fund big enough and stable enough to retire on. Bitcoin and other leading cryptocurrencies (such as Ripple and Litecoin) are so new that the marketplace is still essentially attempting to determine their real worth.
We don’t know what it’ll be like next week, never mind when you at the point where you are giving up work.
Personally, I would not risk something so important to something so volatile and untested.
The worth of Bitcoin depends on whether this system could end up being a major monetary organization later on. In short, the more it is perceived to be an essential payment device going forward, the more valuable it will become.
Could Bitcoin Crash?
Bitcoin experienced a crash before. In November 2013, the price of Bitcoin went up above $1,100, However, it didn’t stay there long, rapidly declining to the $200 price point within a year or so.
Today’s Bitcoin situation has aspects of a potential crash in the sense that it’s a miasma. Investment crashes come about by periods of contagious exhilaration about some investable asset. This frenzy is then boosted by public speculation of increases in rate, and the envy and ego directed at people who made a load of money by getting in early.
You don’t need a millionaire mindset to recognize that there is serious money to be made in cryptocurrencies. Whether you make a fortune or not is ultimately going to come down to timing.
However, the biggest risk lies in the novice investors who are looking for a get rich quick scheme. As soon as they these people see their investment decreasing they are likely to panic. This panic feeds other such investors to follow suit and before you know it, you have a bubble burst.
Bitcoin Vs Litecoin Vs Ripple
This could also be a re-run of the VHS vs Betamax video recorder battle of the 1980’s. In that case, the better system lost because VHS had more backers and a better brand name. Bitcoin is the first but it is not the best. There are serious faults with the speed and scalability of the Bitcoin blockchain.
Rival coins such as Litecoin ($LTC) and Ripple (XRP) are much better products and are perhaps a better long-term punt. For example: Ripple has just been adopted by over 70 Japanese banks, giving it a huge change to go mainstream.
However, as we have seen before – best doesn’t always win. Can the runaway train of Bitcoin even be stopped?
Craig Beck is the author of Building Extreme Wealth and Millionaire University. If you are looking to rapidly increase your wealth and abundance in life. Click here for more information on Craig Beck’s Millionaire University.