Buying Bitcoin Now at $27K Is Less Risky Than Buying Bitcoin When Its Price Was $27
By: Sylvain Saurel
Tags: Cryptocurrency Investment, Bitcoin, Investing, Cryptocurrency, Finance

Buying Bitcoin Now at $27K Is Less Risky Than Buying Bitcoin When Its Price Was $27

Few understand this.

Illustration by Sylvain Saurel

Bitcoin price exceeded $20K for the first time on December 16, 2020. It had become clear in recent days that the $20K was a psychological barrier for Bitcoin. I had spoken about it several times, and it was confirmed afterward.

In fact, as soon as the Bitcoin price went above $20K, the next thing that happened was a very spectacular increase in its price. This Bull Run brought the Bitcoin price above $28K only eleven days later.

The new temporary All-Time High (ATH) for Bitcoin is $28,288. I say temporary ATH because you can be sure that it will be beaten in the coming weeks and months. It might even be beaten before the end of 2020 if the market increases the Bitcoin price to $30K.

At the level of its ATH, a real sell wall was standing in front of Bitcoin. This caused its price to fall as quickly as the price had risen since December 24, 2020. The Bitcoin price fell to around $26.5K in a few minutes. The price then rebounded to around $27K.

The current volatility requires caution, and above all, a good strategy. The best strategy in the Bitcoin world is Dollar-Cost Averaging (DCA) in automatic mode.

The run we have been experiencing since December 24, 2020, seems to be driven by the beginning of the arrival of retail investors into the Bitcoin world. The search volumes for the term “Bitcoin” on Google have been increasing in recent days, which would support this hypothesis.

Many think it is a risky time to buy Bitcoin

Many still hesitate, thinking that buying Bitcoin at $27K is risky. After all, Bitcoin has beaten its ATH several times in the last few days. It is a common idea in the investment world that it is better to avoid buying an asset when it has just beaten its ATH. The upside potential being de facto reduced, and the risk of a correction greater.

While this may be true in the world of traditional finance, and some current examples seem to show us otherwise, you must understand that Bitcoin is a complete paradigm shift.

Bitcoin is not a financial investment like any other. Even at $27K, the upside potential of the Bitcoin price is still awesome. We are at the beginning of the Bitcoin revolution since we are still in the “early adopters” phase of the adoption cycle of new technology:

Illustration by Sylvain Saurel

Buying Bitcoin at $27K is actually much less risky than it might have been when innovators bought it in bulk when it was $27 in the past.

Buying Bitcoin in the early 2010s was much riskier

To see Bitcoin with a price under $27, we need to go back to the period from its official launch on January 3, 2009, to the very beginning of 2013. At that time, Bitcoin still had everything to prove.

Bitcoin was a great idea, but people still had to buy into this idea as they have done then for more than a decade now. Bitcoin had to prove that its system was truly viable. Besides, the theoretical effects of Bitcoin’s programmatic monetary policy had to be proven in practice.

In 2020, after three Bitcoin Halvings, Bitcoin’s monetary policy demonstrated its superiority over the current monetary and financial system.

As more and more money comes into the Bitcoin world, more and more players are encouraged to become miners on the network. De facto, the security of the Bitcoin network continues to strengthen as shown by the increase in its Hash Rate. This allows Bitcoin users to come and invest their savings in the network with the certainty that it is safe.

As the Bitcoin price rises, buying Bitcoin becomes less risky

Bitcoin differs from the world of traditional finance and especially from the stock market for one simple reason: As a company’s stock increases, buying that stock becomes riskier and riskier. More cash flow is required to justify this increase in the share price.

The higher the price of Bitcoin, the less risky it becomes. It is a virtuous circle that takes place:

Illustration by Sylvain Saurel

This Bitcoin Positive Feedback Loop raises the Bitcoin price sharply, increasing the security of the network and attracting even more investors. And so on.

Buying Bitcoin today is a given rather than a risk. Some people keep telling you about Altcoins, but you have to understand that buying Altcoins is a big risk. You can win money, just like playing roulette at the casino, but the risk is much greater to lose a lot of money.

You buy Bitcoin at the price you simply deserve

When you buy Bitcoin, you are choosing to invest your savings in the best savings technology in the world. The purchase price is the one you simply deserve. If you had totally believed in Bitcoin in March 2020, you could have bought it for $3.8K. Today, its price is what it is. By the end of 2021, it will be much higher.

If you wait until more people understand that Bitcoin is the future, you will pay even more for your BTC. You have the power to decide at what price you want to buy your BTC.

In a few years, the adoption of Bitcoin will have exploded, and everyone will be saying the same thing: why didn’t I buy more BTC when the price was below $100K?

Bitcoin price is $27K when only a tiny minority of the world’s population understands Bitcoin. The more people come to learn about Bitcoin technology and why, the more its price will rise as demand explodes. With a hard-capped supply of 21 million units, it can’t be any other way if we rely on the principles of the law of supply and demand.

Bitcoin’s upside potential is still immense

As Bitcoin price rises to the million-dollar mark, significant corrections will occur. This will be an opportunity to test how much you believe in the Bitcoin revolution. The weak hands will sell at a loss, while the strong hands will take advantage of this opportunity to accumulate more and more BTC.

This is how Bitcoin works: Bitcoin rewards those who believe in its revolution the most.

The fact that so many people continue to refuse to open their eyes to Bitcoin by calling it a scam or predicting its future death gives you an indication of the still phenomenal upside potential that lies ahead. Bitcoin is now more likely to reach $100K than to drop to zero as some still predict.

Buying Bitcoin is not risky if you fundamentally believe in its revolution. It’s up to you as always to decide which side of the story you want to be on.