In Focus: Bitcoin, Patience to Profits
In 2021, 2017 seems like a lifetime ago for some and not so long ago for others. The same can be said about 2018. Both 2017 and 2018 were big years for Bitcoin, cryptocurrencies, and cryptocurrency investors.
In 2017 we saw the astronomical rise of Bitcoin when it traded to $19,000 per digital coin, it started 2017 trading around $1,000. Soon after hitting the major milestone the digital currency came crashing down. In 2018 bitcoin traded down to a little over $3,000 per digital coin. It was a time for cryptocurrency skeptics to say, "I told you so."
The Bitcoin crash of 2018 was also significant because this is when Wall Street companies had a chance to take in the impact that crypto currencies could have, and more importantly get involved at a deep discount.
Read this article where we explained Wall Street's new found love for cryptocurrencies in 2018.
Now in 2021 Bitcoin has surpassed $33,000 as of this writing. Those that picked up Bitcoin while it was dirt cheap under $5,000 per digital coin or even just cheap at under $10,000 per digital coin are sitting in the shade today because of the seeds they planted not that long ago.
3,000 to 33,000, that's a 1,000% increase in a little less than three years, which to a long term investor like myself isn't that long. Imagine in mid 2018, someone promised you that in two years and 11 months they would give you $10 for every $1 you gave them at that time, what would you do?
This is what Bitcoin did for a handful of patient investors and the major Wall Street houses that staked their claim almost three years ago, Bitcoin is handing them back $10 for every $1 they had the smarts to invest in 2018. Smarts plus patience equals BIG WINS!
In April/May of 2020, when the stock market rallied from it's pandemic low, we witnessed everyday people make good money in the markets by investing their government issued stimulus checks. Whether it was great timing or great luck, novice investors were able to capture great gains from the markets in a very short time frame.
The market's rally since March has created an abundance of amateur profit chasers who are jumping in and out of stocks in an attempt to catch the next major move. However, these amateurs are starting to lose their money to the professional profit chasers, who trade in and out of stocks for a living, and not just to pass time during a lockdown.
Profit chasing is a good way to make a living if you're able to do it, but patience is much easier to execute than timing the markets.
Throughout its history Bitcoin has rewarded its patient investors time and time again. From it's early beginnings when it hit $100 per Bitcoin after trading for less than $10, and then again when it hit $1,000, and again when it hit $5,000.
Bitcoin, more than any investment I know of over the past 10 years has taught the lesson that patience pays, and it's rewarded those that have paid attention to the lesson.
Before trading out of that investment that has not performed up to your one-week expectations, think about Bitcoin, think about how it's rewarded patient investors, and let that, and not short-term profits be your guide.