Hint: This post is the English translation of an own article I published in German here.
I first became aware of bitcoin in the summer of 2012. Until then, I had only invested in shares. The new electronic currency interested me. At the time, I didn't know how to buy and store Bitcoin. Nor did I know what the risks were. That's why I turned to a financial expert. A person I held in high esteem because he had a great deal of knowledge and was very technically savvy. I knew his statement, "that he had researched Bitcoin and checked it out".
Mid 2012
Memory transcript of a conversation with a financial advisor.
Me: "You know about investments and how electronic currencies work. I need your advice on that."
He: "You want to invest in Bitcoin? It's definitely too late for that now. Bitcoin's peak is over. Invented in early 2009, the price was around 25 cents at the end of 2010. This price might have been realistic. Last year (2011) we had a bubble, the price shot up to over $22. Imagine $22 for nothing but a few bits in a computer. That's not rational. Bitcoin has no intrinsic value. Nor is there any entity that monitors its issuance or controls its value. Now (in 2012), don't you see the trend? The price is around $10 and it's going to keep falling."
"Sure?"
"Yes. Other cryptocurrencies are mushrooming and they are technically superior to bitcoin. Bitcoin is thus just one nonsensical cryptocurrency among many and will soon be completely forgotten. Hands off!"
"Well I thought as part of my portfolio and because I'm interested in the technology behind it."
"How much do you want to invest?"
"I was thinking of €5,000."
"Then you might as well burn your money. I recommend investing in shares. In the long run, they always go up."
"Which ones?"
"If you want to be technically innovative, then invest in solar stocks. Solar energy is subsidised by the government. If you invest in companies that produce or set up solar plants, you can't go wrong."
I invested €5,000 in shares of the company Solarworld.
In retrospect, this conversation proved to be very useful.
I learned what personal responsibility in financial matters means.
Today
While browsing the internet, researching ideas and other ways to generate passive income streams, I found this statement again: "It's definitely too late to invest in Bitcoin now."
They are certainly right. The Bitcoin price today (14.03.2021) is over 50,000 euros. Anyone who invests now can only lose. For curiosity's sake, I looked at the date this page was created: 09.12.2020. So this page is pretty up-to-date. It was also written by financial experts. In fact, on 9 December 2020, the closing price of bitcoin was 15,131 euros (source: https://www.finanzen.net/devisen/bitcoin-euro-kurs/historisch).
So at that point it was definitely too late to invest in Bitcoin.
But even on this day and at this price, Bitcoin were traded. There were actually some unteachable people who bought Bitcoin at the price of €15,000. Unimaginable!
That's what they get now. Today, the Bitcoin price is €50,000 euros.
Mind you, euros, not dollars.
Disclaimer
This article does not constitute financial advice and is not a solicitation or recommendation to invest in cryptocurrencies. Especially not in bitcoin.
You have read several times: It is definitely too late to invest in Bitcoin now.
Thank you for reading this far. I wish you a relaxing Sunday.
yours @germansailor
PS.
At the beginning of 2016, I invested a small, three-digit amount in Bitcoin for the first time. I was and am aware that such an investment is highly risky. The prices are subject to large fluctuations and are largely unpredictable. Nevertheless, when the prices occasionally fall, I sometimes use this to buy small amounts.
However, this approach is by no means recommended for imitation, because you know...
Image source: Pixabay, Screenshot
Translated with www.DeepL.com/Translator (free version)
Many people said that earlier (in the past).
Many people said this earlier (in the past) too.
Some people say that the Bitcoin will reach $100 000 USD in the near future. Maybe they are right. If that will be the case, then it is definitely not too late to invest in Bitcoin (BTC).
Congratulations @germansailor!
You raised your level and are now a Dolphin!
For storing value it´s never too late.
Definitely it is late to invest now. What I hate is the fact that I missed opportunity to buy when it dropped to $4000 last year. That was the time to buy.