After breaking the $10,500 USD mark, our favorite orange coin is moving in the right direction again. But before you lose your mind to euphoria, here are 5 facts you must focus on when Bitcoin prices go up.
Fact #1: Bitcoin doesn’t Care About Price!
The first and most fundamental fact is that Bitcoin couldn’t care less about price. Bitcoin was built as an alternative to the fiat system. Nakamoto designed it to be an electronic form of P2P cash, not an instrument for speculation or trade that could net people thousands of dollars.
As a result, Bitcoin will keep on working as advertised regardless of price. Transactions and fees might change radically now that the price is going up because there is a surge in trading or interest. That movement will eventually find a new equilibrium according to the price.
The network will not change. That 21-million-coin cap will not budge. Bitcoin halvings and difficulty adjustments will keep on taking place every 210,000 blocks and 2016 blocks, respectively. Keep that in mind!
Fact #2: It is Never Too Late!
If you think you missed your opportunity to buy because the price is “too high” now, you were probably thinking about getting into Bitcoin for all the wrong reasons. The fact is it is never too late to buy Bitcoin.
Once again, this is not some investment vehicle or an asset that yields fiat profit. Seasoned traders can turn a profit on Bitcoin, denominated in fiat. Coins don’t appear out of thin air so you will always be competing to buy a piece of the Bitcoin that has already be mined or will be mined.
Fact #3: The Next Bitcoin is Bitcoin
As a corollary to fact #2, there is no “next Bitcoin.” Again, if you are looking for fiat profit in this world you are either a seasoned trader – mostly basing your decisions on technical analysis – or you are looking for a quick buck on a lucky strike.
In terms of price and the opportunity to see your net worth swell hundreds of times over, there is no “next Bitcoin” out there. Every other cryptocurrency has tried to dethrone BTC at one point or another and they have all failed so far.
Don’t fall for all those who tell you stories about how the real Bitcoin is x or y or z. Your best bet is and probably will always be Bitcoin!
Fact #4: If you are Still Here for Fiat Profit, Evaluate your Own Situation
If you made it this far into this blog post, you might still be looking for the information that is going to give you an edge seeking fiat profit on crypto markets. Well, the only advice we can offer here is to ask you to evaluate your own situation thoroughly.
Make sure you:
- Never invest more than you are willing or able to lose – yes, those leveraged BTC positions are very risky!
- Understand what you are buying into
- Once you buy Bitcoin, make sure to store it properly on a hardware wallet preferably
- Buy only after you have assessed your current financial situation thoroughly and you have established what your appetite for risk really is
Fact #5: Many People will Make Money when Bitcoin Prices Go Up
Looking around at all the nouveau riche will not do you any good under any circumstance. They probably made their choices a long time ago and are now reaping the benefits.
When other people make money – fiat profit that is – it doesn’t necessarily mean you are in the position to do the same. All those friends of yours who have been begging you to buy BTC for years, they put themselves into a position to succeed long ago.
If you don’t have coins and are wondering how to buy in, you can call them. Please don’t ask them how much money they made.
Chances are they were trading and making money long before you saw Bitcoin prices go up, or they were hodling their coins through a 3-year bear market and are now reaping the benefits.
Always Learn More!
The best thing you can do if you are going to buy now or later is to learn more. The more you know about Bitcoin the better off you will be, whether you are looking for fiat profit or you truly believe that the fiat system is broken beyond repair.