Since its big breakout in 2020 everyone wants to know … is it too late? Can I afford bitcoin? Should I buy bitcoin?
Bitcoin has gotten Wall Street talking before. But this time, it’s different.
Fidelity reported that 90% of high-net-worth clients are interested in bitcoin. And 70% of institutional investors are expecting to add cryptocurrency exposure to their portfolios in the next five years.
We’ve come a long way from the nerds in basements that started this digital revolution.
If you’re ready to get in but don’t know where to start, look no further than Swan Bitcoin.
Swan is the best way to accumulate Bitcoin with automatic recurring and instant buys using your bank account.
But like I was in 2012, you might be skeptical…
Your financial advisor may still be telling you to avoid the speculative asset altogether. But you see what’s already happened, and you’re wondering … how high could it go?
So instead of focusing exclusively on the risk … let’s look for a moment at the potential reward.
In February of 2011, the cost of a single bitcoin crossed the $1 threshold. Since then It’s traded as high as $690,000.
Had you invested $1000 in 2011, at its peak your investment would’ve been worth $69 million.
Now, there is no guarantee it will increase by 69,000% in the next ten years. But it could. It could also increase by a modest 10,000%.
The best performing stock of the last decade was Netflix, Inc. (NFLX). Investors who held earned over 4,000%. But those returns pail in comparison to bitcoin’s return over the same period.
No Risk – No Reward
You know how the market generally works. You buy index funds or stocks, and most increase in value over time.
What happens when the market dips 5%? Do you panic?
No of course not. You know the market fluctuates and you’re in it for the long haul anyway. Odds are it’ll come back in no time. In the meantime, you can buy more at a discount.
So approach bitcoin with the same risk tolerance. Don’t allocate more than 5% of your assets towards it. That way, if it does go to $0, you’re down a measly 5%, and the rest of your portfolio can keep growing.
So that begs the question…
Can Bitcoin go to $0?
The odds of bitcoin reaching zero are about the same as Apple or Tesla’s stock going to zero…
It’s more than a guess. I’ve got data on my side.
Here’s the cold hard undisputed fact … Bitcoin has real buyers.
Bitcoin has haters. Some call it a scam, a pyramid scheme, a pump-and-dump, worthless. The list goes on and on.
Stocks would be worthless paper, but buyers have assigned a value to them, so they hold value.
Prices in the stock market are controlled by the buyers and sellers … nothing else.
The reason the stock market rises over time is because there are “real buyers.”
Every day people like you and me contribute to a 401k, IRA, or pension fund. Most investors contribute some amount from each paycheck. And it adds up a lot. The markets rise over the long term because of this buying pressure.
Now for the truth about bitcoin … Bitcoin has real buyers. Bitcoin has value because people are willing to pay for it.
There’s a chart that you need to see. Perhaps the most important bitcoin chart in existence. It shows what’s going on behind the price action…
The orange line represents the number of wallets with 0.1 to 1 bitcoin held. These are small investors with between $100 – $60,000 invested in bitcoin.
What you can see from this chart is the number is climbing—over 700,000 people with small investments.
People are treating bitcoin like a traditional investment. They buy a little bit every week or month and watch it grow.
Bitcoin is still trying to find its exact place in the financial market. But real buyers have real effects on the price.
Forget the Peaks
Bitcoin’s price was also on the chart above. You already know it’s been a wild ride. It started under a penny in 2010 to $69,000 in 2021.
The financial media loves to call out the drops. But the drops never last too long. Remember, there are real buyers … And real buyers can establish price floors.
One more chart you need to see…
Source: inbitcoinwetrust.net
This chart shows the lowest price you could’ve bought a whole bitcoin for each year since its inception. This is real data, not anyone’s opinion. It’s not speculation. It’s a fact.
The bottom keeps rising. In 2017, $20,000 was the top. In 2021, $30,000 was the floor.
Where will the price be in 2025? 2030?
How much will you own?
The Best Way to Buy Bitcoin: Dollar-Cost Averaging
I like to buy some bitcoin every week.
It’s not too late. A recent survey showed that about 17% of Americans own some bitcoin—more than 50% own stock. So there are still a lot of potential adopters out there.
And you don’t have to buy a whole bitcoin. You can buy fractions. That’s what most people do.
Every week I convert $50 from my checking account into bitcoin.
What can you afford?
Can you afford $10 per week? $20 per month?
My point is you need to get started if you’re going to enjoy any big returns in the future.
A $100 investment in 2011 would be worth over $4 million today. I believe that bitcoin should have a place in everyone’s portfolio.
You can get started today with Swan Bitcoin. They have low fees and great customer service.
I use Swan to get my weekly dose of bitcoin.
One last note … Your first $10 worth of bitcoin is on the house when you sign up. It’s yours to keep no matter what.
Start your bitcoin journey today with a small investment in your future. It’s your choice … Start investing in bitcoin or wish you had in 10 years.
If you’ve got more questions, please feel free to reach out. Michael@trading4keeps.com
I have options for large investors too. Sorry the SEC won’t let us talk about them publicly. Email me for details.
Disclaimer: Swan charges a small fee of ~1% for bitcoin purchases. If you open an account using a provided link, we will receive 10% of that fee paid to us in bitcoin. Your cost will remain the same. These commissions help keep trading4keeps.com free for everyone.