As you may have seen, Bitcoin hit a new all-time high last week of nearly $67,000 per coin, and many individual investors believe they missed the chance to invest into Bitcoin because the price is so high. They are asking themselves now, “Is It Too Late to Buy Bitcoin?”
While this is not financial advice and all investors need to do their own research, it’s my opinion and belief that it’s not too late to buy Bitcoin. The only time it will be too late is when every Bitcoin is finally mined and staked away in secure online vaults or offline cold wallets. That day will come, especially when you consider that there are nearly 48 million millionaires globally, and only 21 million Bitcoin will ever be produced.
That means there are not enough Bitcoin available for even half of existing millionaires to have a single BTC. At some point, many of those millionaires will want to buy Bitcoin. By design Bitcoin’s scarcity is its most desirable attribute regarding value creation. That’s because basic economic theory tells us that increasing demand for an increasingly scarce asset will ultimately drive the value of that asset higher.
So even at these high Bitcoin valuations now, it’s a good idea for anyone who can afford it to begin to dollar cost average, as much as you comfortably can, every week or every month into Bitcoin. Especially since individual investors can purchase fractional amounts of the granddad of all cryptocurrencies. Because once those coins are bought up and hodled away for good, their value is likely to go even higher. While past performance is not a guarantee of future results, this tweet from Charlie Bilello, CEO of Compound Capital, declared Bitcoin the best performing asset of the decade and backed it up with data to prove it.
Zooming in on Bilello’s chart you can see that Bitcoin holds the top spot when it comes to best performing asset – and it’s not even close. On an annualized basis, Bitcoin produced more than a 230% return EVERY year, which is a 10x over the next best performing asset class, the Nasdaq 100.
Bitcoin beat every other asset including: U.S. Large Cap stocks; REITs; Preferred stocks; Treasuries; junk bonds; investment-grade bonds; gold; U.S. dollars; and commodities. Bitcoin beat them all.
Until institutional investors gobble up all the Bitcoin and sock it away, never to be seen again – it’s not too late to buy Bitcoin. There’s an ancient proverb that says, “The best time to plant a great oak tree was 30 years ago. The second best time is today.” That holds true for Bitcoin as well – the best time to invest in it was 10 years ago. The second best time to invest in it is now.
On The Flipside
- Too many investors suffer from “Fear Of Missing Out (FOMO)” and throw all their assets into booming investments at the cycle peak.
- That’s a recipe for disaster, a safer approach is to consistently invest a fixed amount every week or every month – whatever you can afford.
- That way your entry points will revert to the mean, and you’ll pay less overtime.
Why You Should Care?
One day a single Bitcoin will be worth a million dollars and Bitcoin hodlers will simply not sell them. Instead, they will collateralize their Bitcoin and borrow against its ever increasing asset value. Now is the time to secure part of that future for yourself and family.