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With the digital currency steadily rising over the last six years, is this the last chance to buy bitcoin?
In 2010, a Florida programmer called Laszlo Hanyecz convinced someone to accept 10,000 Bitcoins he’d mined on his computer in exchange for two pizzas. Back then, when the currency was still in its infancy, that amounted to around $25. On today’s exchange rate those pizzas would be worth an eye-watering $12,046,100.
“It wasn’t like Bitcoins had any value back then, so the idea of trading them for a pizza was incredibly cool,” Hanyecz said in an interview with the New York Times. “No one knew it was going to get so big.”
Fast-forward to 2017 and times have changed for Bitcoin, so much so that major banks, venture capitalists and forward-thinking individuals have shown a growing interest in the currency. At the last count, around 150,000 merchants now accept Bitcoin with the number of daily confirmed Bitcoin transactions at just under 300,000.
Unlike 2010, the cost of one Bitcoin is now trading at $1,252 despite a slight drop from a March high of just under $1,300. Recent developments such as the Bitcoin ETF's pending SEC approval indicate that the currency has reached a tipping point.
Speaking to Cointelegraph, David Farmer from Coinbase said the company believes it is increasingly likely that a Bitcoin ETF will be approved at some point this year.
“Our professional trading exchange GDAX has received a lot of inbound interest from Wall Street firms,” Farmer said. “If an ETF is approved, this large institutional volume will enter the ETF and spot markets and trusted and regulated exchanges like GDAX will play an important role in creating a well-functioning asset-based ETF.”
So, with the digital currency steadily rising over the last six years, is this the last chance to buy Bitcoin?
In an article from The Motley Fool, it says: “The days of making big money from Bitcoin are almost certainly over, while the risks are as high as they ever were.” While there are some who will disagree, there is some truth in what’s being said.
At the rate the currency is trading at, it is becoming increasingly difficult for people to invest in the currency. Not only that, but Bitcoin remains volatile. Its price slumped after the collapse of Mt. Gox in 2013 and more recently in January as China attempted to bolster the yuan. If its price were to drastically collapse, no central bank would rush to help with compensation.
And yet, while it may be difficult for people to invest in the currency, this could be the last opportunity to do so.
According to analyst Adam Davies, who recently spoke to CNBC, the price of Bitcoin could hit $3,000 by the end of the year, representing a near 150 percent increase from its current price, at the time of publication. Additionally, as the supply of Bitcoin is limited, its price is expected to increase over time.
Speaking to Cointelegraph, David Motta, business financial consultant, marketer and investor, said that he thinks the coin will continue to go up.
“[However], I think it’s wiser to invest $10,000 in something that I can purchase for .04 cents that can eventually reach $1 per coin, instead of investing $10,000 in Bitcoin and [waiting] for it to go up another $1,200 to double my investment,” he said.
He adds, though, that people should expand their portfolio and diversify with other coins in the market to lower risks and to make big money over the long-term.
Diversification is key to an investment portfolio and will do well to have some Bitcoin attached to it, so if you buy Bitcoin now, you may do well over time with them. As with all investments, though, there will be ups and downs to it.
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