for the past 69 weeks bitcoin price has risen almost $10 average per week. (bitstamp)
if this trend continues we will have a price of:
- $1300 @december 2017
- $1800 @december 2018
i could live with that.
edit: but i think there will be another run-up inbetween. but when?
I could live with that too. So many shortsighted bitcoiners don't realize that as a long term investment, bitcoin flat out destroys any 401K, IRA, or mainstream stock vehicle by a long shot. Hell, just using it as a savings investment, at an increase of just +5-10% a year it would do hella better than any fiat savings account. And the great thing is, the bar for entry is extremely low, since you can purchase any small amount down to virtually dust.
And then throw in the occasional bubble and whoa...
At the very least, college kids who have graduated and hampered with student loans should be throwing extra money into bitcoin, so that one day it will help them payoff the remainder of those loans faster.
Actually, my initial goal investing into bitcoin was to attempt to have returns of at least an average of 3% per year, but really I had preference of at least an average of 6% per year. Of course, performance beyond those goals would be icing on the cake, but at the same time, I was of the understanding of the risk, so I also understood that there was a potential to lose 100% (so it is not an exactly tried and true savings/investment vehicle).. Be we also knew that there was upside potential of thousands of percentage of return.
I employed dollar cost averaging to attempt to achieve my minimum goals with the above caveats, and the ride has certainly been like a rollercoaster.
At the end of my first year, I was approximately negative 34% - which would be an an annual (negative 34%)... The dip did get worse, but let me just take year snapshots for illustrative purposes.
At the end of my second year, I was approximately negative 22% - which would be an an annual (negative 11%)...
At the end of my third year, I was approximately positive 70% - which would be an an annual (positive 23.3%)...
In the past year, I have a few other things going on with stacking fiat within my bitcoin investment fund, that sometimes will cause various kinds of ways to measure the profits, but overall the trend is coming out decent and the cushion is great.
For about the first 5 months of this year, between January and May, based on my cash reserves and my BTC holdings, I was considering my BTC investment to be floating in the approximately breaking even territory (probably more likely a few percentage points in the red).. so yeah, a large portion of the gains and the cushion came since May of this year... and it is all good and continuing to feel like a decent approach to hedge against other dollar (or other fiat) based investments.