The Bitcoin ecosystem contains a funny mix of bulls and bears. For every person who thinks that Bitcoin will hit $100,000 by the end of the year you probably have two or three who think that it will sink below $1,000. Yet despite the bearishness of many on Wall Street who think that Bitcoin is much ado about nothing, Bitcoin continues to make progress both as a payment system and as an investment asset.
Everyone remembers the Bitcoin “bubble” of late 2017, when Bitcoin’s price approached the $20,000 mark. Many who bought into Bitcoin then lost big, as their hopes of a continued stratospheric rise in price didn’t come to fruition. That caused many people to cash out their holdings in 2018, convinced that they had been taken for a ride. But investors who studied Bitcoin markets and knew that Bitcoin is a solid investment asset knew better.
Bitcoin’s price performance continues to show volatility, but nowhere near the volatility it once had. Things have smoothed out, with most price moves taking place over the longer term rather than the short term.
And what exactly do those price moves look like? From the beginning of 2017 to today, Bitcoin’s price has more than octupled. And from the beginning of 2019 to today, Bitcoin’s price has more than doubled. There isn’t a single other asset out there that has seen that kind of price growth. While early adopters were rewarded from 2017 onward, those who retained their faith in Bitcoin’s long-term potential have also been rewarded even if they invested in Bitcoin only recently.
Like any other investment, investing in Bitcoin should be looked at as a long-term proposition, a vote in favor of Bitcoin’s long-term growth potential and ability to disrupt the financial services industry. It’s not a get rich quick scheme that will double or triple investors’ money overnight. Those who approach Bitcoin with the right attitude and who understand that mindset will end up being rewarded as Bitcoin continues to gain value.