How is bitcoin worth buying now at these prices?

[hatshepsut93]

Bitcoin is in a strong bull market now. The price will be rising for quite some time. Yes, no one can guarantee you a $50k or whatever nice goal you may want, but still Bitcoin right now is a very simple investment - just don't panic sell at the first correction you encounter and you will be fine. You can't say the same about a "random stock", which might crash because their company would majorly screw up or just won't do well, especially at these times of pandemic.

[coolcoinz]

Why are you thinking about doubling your money? Does anything less make Bitcoin not worth buying? With stocks or any other investment like real estate a 10% gain in a year is considered decent and something like 50% is huge and rare. I'd advise you to calculate how much you're losing on holding fiat money in the bank. In many countries where rates are negative you're at least 2% down every year. Even if your bitcoin investment were to bring you 10% a year you should be happy instead of taking the numbers we're seeing today as granted.

[adaseb]

You think its easy to double your money in trading stocks? Did you trade stocks before or did you just hear about people turning $10K into $1M on wallstreetbets.

Most stocks don't go up like 10% a day like Bitcoin. Most average like 1-2% a week if you are lucky. There are low cap stocks that can easily double or triple or 10x in a year but they are very risky and usually go bankrupt. The people who turned $10K into $1M were people gambling with call options. They basically bought very expensive calls and the stock went parabolic and that option ended up being worth like 10x in a short period. They got lucky a few times but eventually they gave all that money back when they started to buy options at the wrong time that expired worthless because the stock went the wrong way or just traded sideways.

So if you want to double your money? How much risk exactly can you take. Because this is what matters the most.

[Fundamentals Of]

So I guess we should try our best to accumulate as many Bitcoin as possible now while the price is still considered low. Perhaps by the time Bitcoin reaches $100k or $300k we will hit a certain level of stability that will somehow cause Bitcoin to function more as a currency than just a speculative asset or a form of investment.

I hope that time will come. It may not appeal to those who wish to create easy money by buying Bitcoin but that time is probably the one envisioned by Satoshi.

[cryptomaniac_xxx]

With the price of it 25k at the moment... even when its 20k... in order to double your money, you need it to hit 50k or 40k.  That number still looks so far away with how much btc has went up this year.  And imagine wanting to 5x your money. 

Why it is not worth it when less than a year ago the price is just $3k? And look at where the price is heading, $50k? it's peanuts actually, the price and this bull run has no boundaries. Of course there will be some pull back, but with kind of bullish sentiments and the whole 2021 around, it's possible that we might see 6 digits in the next 2 years so definitely worth a try to buy today. Also, you don't need to get one whole bitcoin, perhaps you can DCA or just invest what you can afford, as the saying goes.

[maydna]

That is what you need if you want to double your money. But for people who don't chase that big profit, they will prefer to take any profit as they can, and they will do it over and over again. It needs too long to wait until you see the price can double the price you bought, so only some people will wait for a while and not doing anything.

If the bitcoin price is $100k, that will be a big profit for us, especially if we bought bitcoin at $20k. But I prefer to buy bitcoin than stock because the stock will need more time to analyze, although bitcoin needs to analyze too.

[JimboToronto]

...I don't know anything about stocks but i think i rather buy a random stock and it has a much better chance to double in price than btc when its 25k.  Thoughts on this?

You got the first (highlighted) part right.

Don't expect to make big gains on stocks traded on exchanges. They've already been milked.

By the time of an IPO, the real money has already been made by venture capitalists. The vertical part of the s-curve of adoption is long gone. The retail suckers who buy through brokers are just being thrown scraps.

Sure, some people get rich by buying and selling but it's not by just buying and selling shares on an exchange. Warren Buffett bought controlling interests in companies, restructured them and made them profitable. He didn't just gamble on the price of shares.

Unfortunately most people don't qualify to be venture capitalists. They have to wait until the IPO before they can legally buy.
____

Bitcoin is completely different. It has yet to reach the vertical part of the s-curve but anyone can buy in.

There's no need to wait for an IPO. Anyone can be a venture capitalist and make the big gains.

Anyone who figured this out when Bitcoin was priced in 2 or 3 digits and didn't foolishly sell is probably already a multi-millionaire.

It's not too late to still get on board. Most knowledgeable Bitcoin veterans expect to see prices in 6 digits and possibly beyond.

[Josefjix]

Bitcoin has a nice historical data corrections on the price curve unlike some random stock investment that would fold upon successful investment whose loss can no longer be mitigated at the long run. You said you don't know much about stock investment but would rather choose it over bitcoin, it is not business wise. Don't invest in what you don't know. Bitcoin can actually surpass even your predicted $50k and aim higher than $100k then those who bought @ $20k might have gained x4 of their capital. Don't possible pressure Bitcoin to double your investments like a ponzi scheme it is not.
The only thing that has left everyone puzzled is the mass adoption from many institutional bodies.

[JimboToronto]

The only thing that has left everyone puzzled is the mass adoption from many institutional bodies.

Who's puzzled?



This isn't new. Here's something from 2013:

https://www.youtube.com/watch?v=qHUPPYzzZrI

[thecodebear]

The only thing that has left everyone puzzled is the mass adoption from many institutional bodies.

Who's puzzled?



This isn't new. Here's something from 2013:

https://www.youtube.com/watch?v=qHUPPYzzZrI

That's from 2013, except that institutional adoption is still in the early innovators phase right now in 2020! The institution names we are reading about buying up Bitcoin this Fall is the first major wave of the early innovators. Not even close to early adopters yet for institutions. Meanwhile the retail market probably hit early adopters in 2017 but is still there, and might get to the early majority over the next 5 years, while on the institutional side it'll move into the early adopters over the next couple of years and maybe even early majority over the next 5 years as well.

[Lucius]

Not necessarily. In the year after a halving year, Bitcoin has always experienced extreme price increases.
~snip~
Many years to triple your money? Nonsense.
Now is an excellent time to invest in Bitcoin.

This has always been the case so far, and as things stand at the moment, history will repeat itself, but with some new numbers. Unfortunately (for them) some have very illogical thoughts and are a little afraid of these current figures - not to mention that some have completely wrongly expected 2020 to end the same as 2017. Given that we are still in the year of halving, it is realistic to expect that the real effects will start to show in Q3/Q4 2021, so the time for investment is not unfavorable. Admittedly the story has been repeated this year that anything under $10 000 is a cheap purchase, just as everything under $1000 was cheap 5 years ago.

While the past is no guarantee that some things will happen again in the future, those who see the bigger picture can see some things much more clearly than those who look at everything from the point of view which includes only one point in time.

[blckhawk]

With the price of it 25k at the moment... even when its 20k... in order to double your money, you need it to hit 50k or 40k.  That number still looks so far away with how much btc has went up this year.  And imagine wanting to 5x your money. 

Why it is not worth it when less than a year ago the price is just $3k? And look at where the price is heading, $50k? it's peanuts actually, the price and this bull run has no boundaries. Of course there will be some pull back, but with kind of bullish sentiments and the whole 2021 around, it's possible that we might see 6 digits in the next 2 years so definitely worth a try to buy today. Also, you don't need to get one whole bitcoin, perhaps you can DCA or just invest what you can afford, as the saying goes.

Indeed, upon investing in Bitcoin you don't need to buy the whole thing, that would really be expensive, you could have just buy what you can afford. Besides, in my opinion, you can purchase Bitcoin whenever time you want because the outcome will always vary depending on your process. Like, if you are a short-term trader then you must buy at a lower price while on the other hand as a long-term trader you don't need to worry about your entry because no matter what happens Bitcoin will always grow over time.

[Harlot]

For the ones who are currently holding Bitcoin they could definitely add more Bitcoin into their portfolio but for the ones who will just catch up just about now I don't think it will be a good idea for them to do so. They are practically buying Bitcoin at a price where they don't have any safety, yeah sure there is a chance that Bitcoin might continue to go up but don't forget that there is also a higher risk that it will fall down especially if a lot of traders are preparing to flood the market with their sell orders.

How do you figure that 'there is a higher risk that the BTC will fall down'? It could go in either direction. That's been proved many times so far.

I don't predict that it will but it is already given. For one buyer's confidence will drastically decrease when the price of Bitcoin will go higher without any technical supports and the other thing is about holders seeing the price of Bitcoin getting more and more attractive to bail out and take profit. I already know that most whales here as well as other traders are just waiting to short Bitcoin at any moment and they are just waiting for the right time.  It's just really about these people ready to take profit and it would be really silly for people just to catch up at this point without any kind of safety for their holdings.

[24Kt]

For the ones who are currently holding Bitcoin they could definitely add more Bitcoin into their portfolio but for the ones who will just catch up just about now I don't think it will be a good idea for them to do so. They are practically buying Bitcoin at a price where they don't have any safety, yeah sure there is a chance that Bitcoin might continue to go up but don't forget that there is also a higher risk that it will fall down especially if a lot of traders are preparing to flood the market with their sell orders.

How do you figure that 'there is a higher risk that the BTC will fall down'? It could go in either direction. That's been proved many times so far.

I don't predict that it will but it is already given. For one buyer's confidence will drastically decrease when the price of Bitcoin will go higher without any technical supports and the other thing is about holders seeing the price of Bitcoin getting more and more attractive to bail out and take profit. I already know that most whales here as well as other traders are just waiting to short Bitcoin at any moment and they are just waiting for the right time.  It's just really about these people ready to take profit and it would be really silly for people just to catch up at this point without any kind of safety for their holdings.

You can't really count on someone else's decisions. So better secure your funds if you are worried about it. The price of bitcoin is already good to take profit even if you bought btc at about 20k. But if you believe that this will go much further, you can always hodl and wait for the time to gain your profit. Really up to the person how he decide on this matter. We have our own priorities so the decisions also vary from each person.

[militiariko]

Lesson 101 of being a trader is that you cannot buy green candles (bull market) unless certain conditions are met. So is it worth buying bitcoin at the tip price ? NO; Is it worth the risk ? YES but it all depends on your knowledge about crypto currency trading as well as your proficiency in decision making. Always do your own research.

[STT]

Buy regularly over time not all at once and the answer is yes be involved.   The reason being this is a common question or problem faced in many growth sectors and assets, but the answer its always better to be involved with a growth asset even when its already risen considerably previous.   The caution or brakes you apply to your investment to be in control and steady long term your involvement over time, you cannot know the price direction truly none of us are for sure in absolute knowledge.    Surprise to the upside is literally the name of the game for Bitcoin, so with regular investing if you buy every month for the next two years at least you will capture a steady price and have yourself a proper plan and pace.  
  Put it this way its far more likely to succeed with 24 shots in your gun then hoping you get a  perfect shot and profitable trade just arriving at the right time while not having a full interest prior.    I can also say the worse thing is to enter the market on hype and froth of price rapidly rising only to leave as the tide goes out thinking thats all the story ever was, nobody long term wants you to leave without actually using BTC and finding a reason to be a holder in long term; this is the user base crypto ultimately needs to be a success.

[exstasie]

With the price of it 25k at the moment... even when its 20k... in order to double your money, you need it to hit 50k or 40k.  That number still looks so far away with how much btc has went up this year.  And imagine wanting to 5x your money.

In 2017, Bitcoin did a 20x inside of a year, and that was nearly from the previous ATH. A similar extrapolation would put us in the $300,000s late next year.

What other assets have that kind of upside potential?

For example I don't know anything about stocks but i think i rather buy a random stock and it has a much better chance to double in price than btc when its 25k.  Thoughts on this?

Don't do it. Stock picking, on average, works out terribly. Very few people outperform the S&P500 or NASDAQ indices.

There are penny stocks with similar upside potential to BTC, but it's like finding needles in a haystack. You have much better chances of picking a random altcoin successfully since the whole altcoin market will piggyback on Bitcoin's hype.

[Wysi]

I agree with your statement as it won't be much profitable for us to invest into bitcoin at this point of time, because we have already missed the days when we should have invested. Long term investors could still go ahead with buying bitcoin, for average users like us we need to think logically and do our research rather than investing due to FOMO which is driving many to invest.

[enhu]

If you are an investor who believes the price will really pump beyond $300K you still will be buying because it's worth. You however will be buying for a high price, its a fair trade I guess for wanting to profit in investing.

You still have the option to invest on altcoins though, thats what I prefer to do as well since I can't afford BTC anymore.

[exstasie]

You don't need to "buy low, sell high." You can also "buy high, sell higher."

Tabling the discussion of Bitcoin's fundamentals, three words actually explain why BTC is worth buying right now: greater fool theory.

In finance and economics, the greater fool theory states that the price of an object is determined not by its intrinsic value, but rather by the local and relative demand of a specific consumer.

In real estate, the greater fool theory can drive investment through the expectation that prices always rise. A period of rising prices may cause lenders to underestimate the risk of default.

In the stock market, the greater fool theory applies when many investors make a questionable investment, with the assumption that they will be able to sell it later to "a greater fool". In other words, they buy something not because they believe that it is worth the price, but rather because they believe that they will be able to sell it to someone else at an even higher price. It is also called survivor investing.

https://en.wikipedia.org/wiki/Greater_fool_theory

Keynes referred to this behavior as a "beauty contest" and thought of it as a defining characteristic of markets:

Keynes described the action of rational agents in a market using an analogy based on a fictional newspaper contest, in which entrants are asked to choose the six most attractive faces from a hundred photographs. Those who picked the most popular faces are then eligible for a prize.

A naive strategy would be to choose the face that, in the opinion of the entrant, is the most handsome. A more sophisticated contest entrant, wishing to maximize the chances of winning a prize, would think about what the majority perception of attractiveness is, and then make a selection based on some inference from their knowledge of public perceptions. This can be carried one step further to take into account the fact that other entrants would each have their own opinion of what public perceptions are. Thus the strategy can be extended to the next order and the next and so on, at each level attempting to predict the eventual outcome of the process based on the reasoning of other rational agents.

"It is not a case of choosing those [faces] that, to the best of one's judgment, are really the prettiest, nor even those that average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practice the fourth, fifth and higher degrees." (Keynes, General Theory of Employment, Interest and Money, 1936).

Keynes believed that similar behavior was at work within the stock market. This would have people pricing shares not based on what they think their fundamental value is, but rather on what they think everyone else thinks their value is, or what everybody else would predict the average assessment of value to be.

https://en.wikipedia.org/wiki/Keynesian_beauty_contest

Focusing only on the underlying fundamental value is sort of basic, first order thinking. Second order thinking would account for the perceptions of the market.

If the rest of the market is buying BTC because they think it's going to the moon, how much does your assessment of Bitcoin's fundamentals really matter? It doesn't!