Bitcoin, the story of a social elevator
Time and time again, when people talk about safe haven assets, sooner or later gold is invoked in all its facets and in recent years also Bitcoin. The correct term is not a safe haven, but “social elevator”, as long as you hold on and are not in a hurry.
The history of Bitcoin, in the midst of price and million investments
In a recent tweet, the ever-enlightening Watcher Guru points out a striking fact that speaks volumes Bitcoinits attractive power, its deflationary nature, and how it is probably the economic invention of the century.
Watcher Guru’s tweet reported:
FUN FACT: If you invested $1000 in #Bitcoin 10 years ago you had $1,556,000 today.
— Watcher.Guru (@WatcherGuru) 2 October 2022
“Fun fact: if you invested $1,000 in #Bitcoin 10 years ago, you’d have 1,556,000 today.”
1000 US dollars invested in the most capitalized digital currency (BTC) today would be worth 1.5 million dollars155,600% dividend.
Apart from a few unicorns (in financial jargon an investment with huge returns in the short/medium term that one never imagined possible) we can count on one hand returns comparable to Bitcoin, Apple if taken at the initial listing, Tesla etc. but if we talk about both fiat and crypto currencies, 13 years ago Satoshi created a real wonder.
Years of criticism and critics have systematically brought an answer as effective as it is attractive, value.
Bitcoin’s value from its inception to today has grown by 25,756,000% and $1,000 invested 10 years ago could have made anyone a millionaire, a figure that frees the currency in question from the notion of a safe haven asset and places it on a higher plane. of a real social elevator.
However, such a great ability to give as an investment is not always guaranteed if the approach is a trader; a professional and a discerning eye can certainly have good results with this practice as well, but accumulating BTC from a long-term perspective always hits the mark for at least two reasons.
The successful nature of Bitcoin
One of the main reasons behind the success of Digital Gold is certainly its deflationary nature; although it is now common knowledge, it is worth mentioning that this currency experiences a halving event every four years, in other words a halving of the number of mined BTS.
The other reason for BTC’s tendency to grow is the numbering, the currency actually only has 21 million unitswhich are not yet all mined (the cryptocurrency is based on Proof of Work which involves mining).
If we consider its increasing use in the world and the number of people that can potentially be reached (7 billion), its value can only be expected to grow precisely because of its scarcity characteristics.
However, critics just like weeds are difficult to weed out and we find those who respond with humor (playing with numbers) as follows:
“Fun fact: if you invested $1,556,000 in #Bitcoin 1 year ago, you’d have $1,000 today.”
Given the bear market that has lasted for more than a year now, the conflict in Ukraine that threatens to become a world war, the cost of commodities and energy in addition to the ubiquitous inflation, Bitcoin has found a fair correlation with the S&P 500 in recent years and has fallen from $64,000 to $19,575 at the time of writing, with a loss of almost 70% in value.
Therefore, the considerations above make sense, losing is of course possible, but in the long run this eventuality is swept away by the facts, removed from the black swans (catastrophic and unpredictable economic events) which can be an anomaly, in the long run Bitcoin always brings wealth as long as it is considered a resource to keep.
The easy ride to riches has always been a dream, far from providing investment guidance, but based on the data, from its creation to today, Satoshi’s currency has only brought joy in the long run to those who believed in it for a medium / long time frame.
