Is It Too Late to Buy Bitcoin?

The last month has been quite eventful for Bitcoin (BTC). In only 30 days, the leading cryptocurrency has climbed by over 35%, gaining enough traction to surpass the highly sought-after $100,000 milestone—a goal many investors have long anticipated.

For those who have invested in Bitcoin for years, this achievement likely feels affirming. However, for new or potential investors, this recent surge could provoke feelings of FOMO, or the fear of missing out. If that resonates with you, the good news is that it’s probably not too late to buy Bitcoin, but there are important things to consider first.

The Case for Continuing Bitcoin Growth

Initially, it may appear that Bitcoin has limited potential for further growth after hitting the $100,000 mark. Nonetheless, historical patterns tell a different story. Bitcoin is known for its cyclical nature, typically following a four-year pattern linked to its halving events. These halvings lead to a decrease in the mining reward, effectively lowering Bitcoin's inflation rate, and have historically been significant triggers for price hikes.

Presently, we find ourselves in the third year of this cycle—the actual halving year. Historically, this year lays the groundwork for the strongest price movements, usually taking place in the year following the halving.

It may seem unbelievable that Bitcoin can adhere to a predictable pattern, but its past performance over recent years aligns closely with historical behaviors. After enduring a challenging bear market in 2022, investors have started accumulating Bitcoin throughout 2023. Now that we’re in the halving year of 2024, the market is already reaping considerable gains, with the potential for even greater price actions anticipated in 2025. A look back at historical data supports this perspective.

Understanding the Importance of Patience

While 2025 could be a banner year for returns, it’s essential for newcomers to recognize that the best investment opportunities often arise in the quieter, earlier stages of these cycles.

Current price levels may indicate that we are nearer to a peak in this bullish market than at its start. If history has anything to say about it, a bear market could soon follow, and prices might plummet by 70% to 80% from their peak.

This inherent volatility makes short-term strategies particularly hazardous, especially for investors new to the market. Investing during times of high speculation can often result in panic-selling during inevitable price corrections.

To alleviate these risks, it is vital to approach Bitcoin as a long-term investment. If you choose to invest, do so with the intention of holding your coins for a period surpassing a full halving cycle.

Evidence shows that any Bitcoin held for at least six years has never yielded returns lower than 22% (with most cases showing higher returns). This is largely attributed to the semi-predictable influence of its halving cycles. The more halving cycles you endure, the greater your chances of reaping rewards from reductions in supply over time. Instead of chasing quick profits, it’s more effective to focus on steady accumulation and maintain your investment through market cycles.

The Unique Long-Term Potential of Bitcoin

So, is it too late to invest in Bitcoin? The answer is a definite no. However, if you’re looking for part-time gains, you may want to look elsewhere, as the era of Bitcoin offering exponential returns in a matter of weeks appears to be over. Looking at the broader perspective, it’s clear that Bitcoin’s most significant days lie ahead.

By investing in Bitcoin long-term, you are aligning yourself with a unique asset. With a fixed number of 21 million coins, Bitcoin is fundamentally deflationary, unlike fiat currencies which can be printed without limit.

Furthermore, Bitcoin's decentralized framework and unparalleled security features give it an advantage as a reliable store of value in our increasingly digital landscape. This could catalyze rising demand from corporations, financial sectors, and even governments in the coming years, establishing Bitcoin as a cornerstone asset in global investment portfolios.

What Should You Do Now?

If you're considering a Bitcoin investment, approach it with the mindset of holding for several years. Adopt a consistent investment strategy, like dollar-cost averaging, and aim to accumulate Bitcoin in the earlier phases of its growth cycles, rather than during speculative peaks.

Remember, the investment journey is as important as the destination. For Bitcoin, the destination—its full potential as a transformative financial asset—is still a long ways off. By valuing patience, discipline, and appreciating this asset’s unique worth, you prepare yourself to benefit from its long-term advancement rather than just chasing short-lived gains.

Bitcoin, Investing, Growth