Is it too late to invest in Bitcoin in 2023?
The question I receive the most this year is whether it is too late to invest in Bitcoin in 2023. Interestingly, people asked me the same question when the price was $100, $1000 or $10,000. In this article, I will discuss why it may not be too late to buy Bitcoins even now.
Timing: unfortunately, we don’t have a time machine
In fact, we are all late in buying Bitcoin. If we had bought Bitcoin at its launch, you and I would have been millionaires.
Of course, this does not mean that it is not a good idea to buy Bitcoins now. With the knowledge we have now, you probably would have bought more Bitcoins when they were worth $100, $1000 or $10,000.
However, there is no guarantee: Bitcoin could just as easily drop to zero if another cryptocurrency takes over. A price of 0 is unlikely but not impossible.
Others believe that it is more likely that Bitcoin will be worth thousands or millions. I, for one, buy some Bitcoins just in case… You can use one of these platforms if you also want to invest in crypto like Bitcoin:
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Demand and supply
Whether it is too late to invest in Bitcoin in 2023 will ultimately depend on the demand and supply of Bitcoin.
If more and more large organizations buy Bitcoins, the price may continue to rise. Crypto keep an eye on companies like Apple, Amazon, and Google. For example, when there was a rumour that Amazon would accept Bitcoins as a payment method, the price immediately went up.
This is not an unlikely event: you can already see that companies like Tesla, PayPal, and Square flirt with the cryptocurrency. As Bitcoin becomes more integrated into the real world, the chances of a rising price in the coming years only increase.
Why do some people pay tens of thousands of dollars for a Pokémon card? The answer is simple: scarcity. When many people want something and the supply is limited, the price goes up.
Fewer and fewer new Bitcoins are released onto the market. This is because the speed at which new Bitcoins are released is halved periodically. The number of Bitcoins is limited to 21 million, which means the supply will eventually run out.
If demand continues to exist, this can, of course, drive up the price significantly, which makes it still interesting to invest in Bitcoin in 2023.
The blockchain: technology of 2023 and beyond
Another good thing about Bitcoin is that it runs on the blockchain. The overview of all transactions can never be changed and currently, the system as a whole is unhackable. These are powerful features that can boost the price of Bitcoin.
The dominant position in 2023
Another reason why it may still be attractive to buy Bitcoin in 2023 is the dominant position of the cryptocurrency. We use Google as a search engine and Amazon for online shopping because they are the dominant player. They often became the dominant player by being the first, and Bitcoin is the same when it comes to cryptocurrencies.
Psychology: fear of missing out
As a cryptocurrency, Bitcoin is technically anything but superior. However, due to media attention, it is the coin that everyone knows. Even when other cryptocurrencies perform well, many people also buy some Bitcoins. Moreover, every exchange uses Bitcoin in the trade of other cryptocurrencies. The dominant position of Bitcoin will therefore not be lost easily.
The media pays an increasing amount of attention to Bitcoin, and more and more people are afraid of missing out. With 21 million Bitcoins and 8 billion people, there are less than 0.003 Bitcoins available per person.
When Bitcoin becomes more popular and stories emerge of people becoming millionaires with Bitcoin, you will see that the price can continue to rise. So far, this prediction has been true: you can see that after every crash, an even higher top was formed.
Solid protection against inflation
Another reason why Bitcoin can rise in value is that it can be an excellent protection against inflation. This is especially true for more unstable regions, where you see that inflation can rise to hundreds of percentages. In these countries, more and more people convert their money into Bitcoin; even the relatively high volatility of Bitcoin pales in comparison to their currency.
How to invest in Bitcoins?
After reading this article, it should be clear that there is still plenty of potential for Bitcoin. However, this does not mean that you should buy the cryptocurrency randomly. The advice is still “buy low, sell high”. In practice, this is difficult to achieve, especially for people who do not constantly track the crypto market.
Therefore, I often recommend that people use dollar-cost averaging. You then buy Bitcoins at different times, which allows you to achieve an average return.
If you are keen to learn more about investing in Bitcoins you can read our comprehensive guide:
Is it too late to buy Bitcoins in 2023?
Yes! At least compared to a few years ago. People in 2030 may ask the same question again. The question is whether the counter will then be on a few dollars or a few hundred thousand dollars. Unfortunately, I don’t have a crystal ball, so I can’t tell you whether you should invest in Bitcoin.
In any case, it is not necessarily too late or too early to invest in Bitcoin. However, it is important to ask yourself whether you are willing to bear the high risks associated with investing in Bitcoin.
When I was 16, I secretly bought my first stock. Since that ‘proud moment’ I have been managing trading.info for over 10 years. It is my goal to educate people about financial freedom. After my studies business administration and psychology, I decided to put all my time in developing this website. Since I love to travel, I work from all over the world. Click <a href="/about-us/">here</a> to read more about trading.info! Don’t hesitate to leave a comment under this article.