When you look for investment advice, all too often, what you get are examples of investments that would have made you rich if only you had gotten in early. The sad part about this type of advice is that the vast majority of investors never have access to the sort of specialized, unique or hard to find information that would allow them to take early advantage of opportunities that eventually create fortunes. Who could have anticipated that an early investment in Microsoft, Apple or Amazon.com would eventually return more than a thousand fold over the years in increased share price and dividends. More to the point who would have thought that an investment in Bitcoin which debuted at 8/100 of a cent would eventually surpass $100,000 a token or million fold increase? Many normal investors who got rich on Bitcoin and the other examples given here were just plain lucky. Is it too late to make a fortune on Bitcoin or are those days long gone?
What Is The Cheapest Price for Which You Can Buy Bitcoin?
It is highly unlikely that Bitcoin will ever return to its original price of less than a hundredth of a cent per token but it does have impressive corrections mixed in with recurring rallies. Anyone who bought at $16,000 at the depth of crypto winter did exceptionally well as the senior cryptocurrency came back up over $100,000 a token. If you are someone who keeps the faith in Bitcoin, you can simply watch patiently each time there is a correction, pick a likely bottom price, and watch you token appreciate with the next rally. The trick with this approach is not to get sucked into buying at higher and higher prices during a rally. This sort of approach takes patience and depends on the belief that Bitcoin will always have impressive rallies and corrections. What do you do if Bitcoin simply settles into a more or less steady appreciation?
Dollar Cost Averaging as a Bitcoin Investment Strategy
Dollar cost averaging is a useful way to avoid paying too much during rallies and missing out on cheap prices during a correction. The mechanics of this approach are to invest a set amount every payday, month, quarter, etc. no matter what the market price is. Thus a person does not pay more and more as prices rise and gets bargain prices during a correction. This is an approach commonly suggested for mom and pop investors who do not have the inclination, skill, or time to track markets and accurately forecast prices.
What Will Be the Eventual Price of Bitcoin?
Bitcoin is unique as an investment because there will be a fixed number of tokens as the absolute top, of 21,000,000. More than 19,000,000 tokens have been mined so far and the last one will be mined somewhere around 2040. So long as demand for Bitcoin continues the law of supply and demand ought to apply. Thus steady demand for a limited supply will in all likelihood lead to higher token values. So long as an investor routinely purchases tokens at reasonable prices during corrections that is a logical path to creating a fortune over time.
