Select Page

As another week passes, yet another high for the price of Bitcoin. The price of bitcoin throughout 2020 has been surging nearing its all-time high. Bitcoin is up 160% since January 2020 as I write out this post the Bitcoins price is floating around £19,250. So, its safe to say if you invested £10 in bitcoin back in 2010 at its original price of £0.08 and decided to sell today, you would be sitting on around £2,406,250. So it’s not crazy to assume more jumps in the price now cryptocurrency is now a lot more widely accepted.

What about the previous Bitcoin rush around 2017?

Around three years ago, everyone online and in the papers became obsessed with the world of cryptocurrency and thus spurred a feeding frenzy of everyday people who saw it as an opportunity for some “easy money”. Everyday Joes were using whatever money they had to invest in Bitcoin, Ethereum and any other crypto Coin Base would offer them. Unfortunately for them prices did start to drop mid-January 2018 and a lot of people lost a lot of money.

Is there a difference this time?

Now, things are very different. On face value they look the same because evidently the price is rising. The reasoning however in the rise are not the same at all. Looking at google search terms, it suggests that retail investors aren’t that interested at the moment. In 2017 the search for “Bitcoin” exploded and so did the trend in the price. Today, the search results are around 86% lower than at its peak and the price is in fact at a similar level to the price at the end of 2017.

This is an indication that the asset of Bitcoin has matured. People however are still seeing the price rise and are contemplating how or if to capitalise. Consumers know there could be an opportunity to make money or it could be another flop like in 2017.

If you would compare the price of bitcoin today compared to 21 days ago, its definitely increasing. In fact, if you bought 1 bitcoin 21 days ago and decided to sell it today, you would have made around £4k profit. Not bad right?

The Wild West and Bitcoin, what’s the difference?

The world of cryptocurrency has been ever evolving over the past 10 years, but we have noticed a very aggressive rush and social acceptance over the past 3 years. This is making crypto the next new frontier. If you were to compare the likes of Bitcoin to the wild west, there is many a similarity.

Back in 1848 in the USA, James Marshall discovered gold in California. Soon enough, this brought around 300,000 people from all over the USA and the world to California in high hopes of some easy money.

The history of cryptocurrencies begins somewhere back in 1998 but didn’t really catch any steam until around 2009. Back in its infancy, the prospectors where the miners and speculators that took the jump with Bitcoin before there was even a marketplace. These people who invested back in the day are the suspected “Bitcoin Billionaires” of today.

Admittedly, 2017 was a very important year for the evolution of bitcoin and cryptocurrencies as a whole, it was still a little early as the infrastructure was missing. Fortunately, now we are in 2020 and everything has changed. As consumer and corporate interest in Crypto increases so has the infrastructure.

So, should I invest or not?

The reality is, don’t get too uptight about the day-to-day volatility. Undoubtably, at some point in the future, we will look at todays bitcoins price today and think it was a bargain. Now we have passed the US election, unfortunately the markets have turned back to interest of COVID-19 & Vaccines. In comparison, the US dollar to Bitcoin over the past 4 years, Bitcoin has over performed as the dollar has dropped.

Try to look at the Bitcoin price from a 3rd party view, don’t concentrate on markets, the price of GBP. Think of the change of external factors that can impact the reign of cryptocurrency. The world as a whole is trying to move toward digitisation in every walk of life, we use plastic cards instead of cash when buying. Try to think of the evolution of the internet over the past 20 years and how far it has come and evolved. We are so early in the development and recognition of crypto as a whole, 20 years from today crypto may well be the social norm.

My recommendation is, evidently though past behaviours. It’s all about WHEN you buy and sell. I wish I knew the exact pattern for cryptos over the coming years but unfortunately I don’t. If you feel like you would like to take the jump and try to cash in on the next gold rush, start with a small amount of money that you can afford to wager. Add more if you see the market and the external world going that way. Hopefully you can come back to me in 5 years and that me for helping you make your first million but additionally, don’t blame us if you buy and sell at the wrong time.

Soluco Logo

Join the Soluco Family

Be the first to hear about our exciting new features added to our ever-evolving platform. 

Each month we will update you with curated materials, discounts and latest news across the Soluco Group handpicked specifically for you and your needs.

You have Successfully Subscribed!

Coming Soon...

Your one stop shop for family financial securities is just a few more clicks away. 

Crossing the T’s and dotting the I’s, we are applying the finishing touches to the new era of digital financial solutions. 

Register your details today and watch this space. 

You have Successfully Subscribed!