If you’ve been keeping up with current events, at one point or another you’ve probably heard something about Bitcoin. As it entered mainstream media within the past month alone, its stocks rose over 150%. Many flocked to cash in, however, unsure of what the cryptocurrency even meant for the global financial landscape. Running off fumes, it became apparent that they would be late to the party, giving more room for the winners to keep winning.
Early investors, like Grant Sabatier, have positioned themselves to reap monetary gains equivalent to lotteries. If you had invested $1000 USD in March 2015, for example, you would have been able to purchase four bitcoins. That would put your bitcoin capital today at over $80,000 USD. At first glance, why would you not jump at the opportunity to invest, especially given how easy it is to obtain them.
I am not fond to admit that I slipped on investing last year. When I discovered bitcoin, it was due to a need to make online purchases requiring them. Last year, in September, was the first time I had attempted to use Coinbase to purchase bitcoin. I purchased about $150 CAD worth of bitcoin. At the time, its value was just over $750 CAD per bitcoin. I had spent all of it within the month. Now, if I had waited, I would have had over $4,300 CAD today. To make matters worse, I kept these spending habits ongoing until early November, when I actually started noticing the impact of the prices on my spending. It was very shortsighted on my part, and I take it more to heart considering I graduated an accounting and finance program in April. But, let’s not get into that. I took notice, before the big blow up. While Bitcoin was already on a very upwards trend, valued at over $9,000 CAD in early November, that was still less than half of what it is now.
What I am trying to get it, is that the winners are those who were able to come earliest in the wave. However, even people who were late to the party could have still capitalized a month ago like I did. Those with wealth would accumulate the most. Someone who had $10,000 CAD to spend last month would have already seen their investment double on a purchase of a single bitcoin. A word of caution does need to be made to those on the tail end of this wave, who are only now hopping on. Then again, this is only speculation. The same thing could repeat and in a month or two the value of Bitcoin could be well into the $30,000s, and those who rushed now, at a price point of about $21,330 CAD, would be seeing noticeable gains. Still, it remains that scrutiny should be taken to greater lengths as more eyes lend themselves to this phenomenon, which includes potential red tape. Like many other things in this country that make a splash, the government, and other regulatory bodies, including banks, will attempt to reel in impact to coincide with their goals.
Before I go, I wanted to provide you with some other areas to look at if you truly are interested in investing in cryptocurrency. As bitcoin maintains its tide, fees of exchange are rising along with waiting times for transactions. At the same time, other forms of cryptocurrency have become available for mass purchase. There are a few notable players amongst them: Litecoin, Ethereum & IOTA. I recommend doing research on each of those platforms before diving right in. Expect a follow-up article outlining these platforms as well as other lesser known platforms with potential.