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Globe Live Media, Tuesday, January 26, 2021
Bitcoin is the tip of the iceberg of a larger phenomenon that has in decentralized finance, without the control of a Government or a company, its most promising future development. But until the infrastructure and technology are developed, investment in these assets will be highly speculative.
Therefore, For an investor who bet on Bitcoin in 2013 when it was worth $ 100, the best time to enter that market is when “no one talks about it”.
“The best time to buy Bitcoin is when there is blood in the streets and everyone is in a panic, when nobody talks about it,” said an investor quoted by Business Insider Spain who preferred to remain anonymous.
As he told the specialized business medium in 2013 he made his first purchase of 2.5 bitcoins when the cryptocurrency was exchanged around $ 100 per unit. The operation was done in a exchange -as crypto trading platforms are called- based in the Philippines, where the investor resides.
Bitcoin reached a valuation peak in 2017 that brought it close to USD 20,000 in the last days of December. That record was not reached again until December 2020, amid record rises in the world’s main stock markets given the huge injection of liquidity faced by the most powerful central banks in an attempt to boost the economy amid the pandemic of coronavirus covid-19.
But between the peak of 2017 and the new records reached in December 2020 and January 2021, things were far from stable. For example, Bitcoin ended 2019 at around $ 7,000, just over a third of its previous record. And just over a year earlier, in December 2018, it had reached around USD 3,250 per unit.
The only reason I would tell someone to get involved is this is because it is important to understand how it works and how to care for it.
“People forget that this is not the first bubble,” explained the investor regarding that first shot and subsequent collapse. “Until people understand their technology, it will remain speculative,” he added.
The expert admitted that he does not usually recommend investing in Bitcoin to family or friends. Even less so when the price of the asset in question begins to move in a similar way to that of a bubble.
“When nobody wants to touch it, that’s when you have to buy. Not when they are talking about him ”, he adds.
As a measure of this, for example, in Argentina, Google searches related to cryptocurrency reached their highest historical levels in December of last year.
Search data tends to grow year by year, due to the gradual increase in the number of users who have access to the search tool, but the interest curve of Internet users shows a pattern very similar to that of the price of Bitcoin: it hits high in 2017, it collapsed in subsequent years and soared again at the end of 2020. So much so that it competes hand-in-hand with Argentine searches for the dollar.
“The only reason I would tell someone to get involved is this is because it is important to understand how it works and how to care for it. If you don’t use a password or double authentication, they will steal you ”, warned the anonymous investor.
Among his experiences, the Spanish media reports, is the loss of 16 bitcoin at the hands of hackers. In 2014, the Japanese Mt. Gox, one of the most important exchanges of the time, had to close abruptly after having fallen victim to hackers. In total 850,000 bitcoins were lost in that hack.
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