Bitcoin Price Will Always Be Too Expensive if You Don’t Believe in Its Revolution
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Bitcoin Price Will Always Be Too Expensive if You Don’t Believe in Its Revolution
You need to be able to make a decision, and then take action.
By Sylvain Saurel
Posted March 1, 2020
Inlife, there is nothing worse than hesitation. I often see people spend a lot of time hesitating before they finally never take action. These people always imagine that there might be a better time. They wait for the perfect moment, which never comes.
These people somehow make the choice to live with regrets about the actions they might have taken.
With Bitcoin, I have a feeling that a lot of people have been going through the same thing for several years now. When Bitcoin price was $1K, they were reluctant to buy it because they thought Bitcoin was too expensive.
It was the same thing when Bitcoin reached $2K, then $3K, and finally $5K. Many of these people then literally jumped on Bitcoin when it reached $20K at the end of 2017.
Today, Bitcoin is around $8.5K after reaching $10K in early February 2020. This sudden drop in price is once again questioning these hesitant people. At the heart of their hesitation is the same question that comes up again and again:
Is this a good time to buy Bitcoin? Is its price too expensive?
I’m going to disappoint some people, but the reality is that Bitcoin will always be too expensive if you’re one of those people who don’t fundamentally believe in it.
I will explain why in this story.
A Lot of People Are Thinking About Buying Bitcoin
With the approach of the third Bitcoin Halving, and an excellent beginning of the year for Bitcoin price, many people began to wonder if they were missing the Bitcoin train.
When Bitcoin surpassed $10K on February 9, 2020, many people began inquiring about buying Bitcoin.
The same people who weren’t interested in Bitcoin when it was $3.3K at the end of 2018, became interested in Bitcoin when it reached $10K.
How do you explain this strange psychological phenomenon? Quite simply by the feeling of FOMO (Fear of Missing Out).
These people are non-believers who are simply afraid of missing out on the Bitcoin opportunity. They’ve been thinking about buying Bitcoin for months, even years, but never dare to take action.
Any excuse is good for not taking action now by buying Bitcoin.
Bitcoin would be too complicated if you listen to them. There are risks of losing what you own. There are no guarantees on your Bitcoin like you can have guarantees with your fiat currency stored in a bank account.
This list is far from exhaustive, but is representative of what many people will tell you to justify not taking action by buying Bitcoin.
These People Are Always Waiting for the Best Time to Buy Bitcoin
In addition to these justifications, people who hesitate will tell you that Bitcoin is too expensive. They are waiting for the best time to buy Bitcoin. To these people, I often say the following:
On what do you base your opinion that Bitcoin is too expensive?
When Bitcoin price is $10K, and you choose not to buy Bitcoin, what criteria do you think it is too expensive based on?
Generally, you think Bitcoin is too expensive because its price was $3.3K at the end of 2018. At the end of 2018, you had doubts about the $3.3K price because Bitcoin was in the middle of a very strong and prolonged bear market.
In 2017, when Bitcoin started the year at $900, you weren’t even paying interest on it.
Indeed, Bitcoin seemed to you at that time to be simply a system for geeks who dreamed of revolutionizing the current monetary and financial system.
You became interested in Bitcoin when the media started talking about it when its price exceeded $2K in June 2017.
Rather than trying to understand why Bitcoin was a revolution, and how it worked, you simply told yourself at the time that you were going to wait until it dropped below $1,000 to buy it.
And then, Bitcoin’s price soared to $10K by the end of November 2017.
At each additional step up, you have been psychologically blocked by thinking that if Bitcoin was worth $900 at the beginning of the year, it was too expensive today when its price was $10K.
When Bitcoin surpassed $15K in December 2017, you finally took the plunge for fear of missing the train. Bitcoin quickly reached $20K in a hurry, and you felt reassured.
The speculative bubble that formed around Bitcoin price as a result of this widespread euphoria burst throughout 2018, and you panicked.
You capitulated and sold your Bitcoin in early February 2018 when its price fell below $10K.
You lost a lot of money. This prevented you from buying Bitcoin again when it was at $3.3K.
There’s No Such Thing As the Best Time
Generally speaking, there is no such thing as the best time to take action in life. You will always find a reason to wait. And by the time you do, it will really be too late.
You will take action because you will be affected by what happens, not because you have decided to.
Then you will be in a worse position than if you had taken action right away when you were offensive.
Since there is no such thing as the best time, it is up to you to create the perfect conditions. These conditions are created when you take direct action with a positive mindset.
With Bitcoin, it’s exactly the same thing.
There is no better time to buy Bitcoin. Bitcoin wasn’t too expensive at $3K, just as it wasn’t too expensive at $10K or $20K.
Bitcoin Will Always Be Too Expensive if You Don’t Believe in It
In order to be able to judge what a correct price for Bitcoin might be, you need to understand what Bitcoin is. Once you understand how Bitcoin works, and how it is a complete paradigm shift from the current monetary and financial system, you will be better able to judge its price.
You still won’t be able to say whether its price is too expensive or not, because no one really can, but you will understand that all your questions about its price are useless at the moment.
Bitcoin is limited to 21 million units. This is true today, and will still be true in 10, 25 or 50 years from now.
There are currently 7.8 billion people on Earth. When there are 10 billion people on Earth around 2050, there will still be 21 million Bitcoins available.
If you believe in the Bitcoin revolution, then you will realize that this is at most 1 Bitcoin for every 476 people on Earth.
That is very small. So the demand for Bitcoin is going to explode. With the extreme scarcity of Bitcoin, you don’t have to be an expert in the law of supply and demand to understand that Bitcoin price will literally explode.
An interesting exercise then consists in comparing Bitcoin and its $160 billion capitalization with the valuation of other markets:
- The world’s gold stock is the equivalent of $8T
- The global capitalization of the stock market, which reached $73T
- The global money supply that reaches $90T
- The global real estate market reaching $228T as a whole
- The global debt which is astronomically high at $246T
The first thing that stands out is that the capitalization of Bitcoin is currently negligible in comparison to these other markets.
Then, let’s imagine for a moment that the capitalization of Bitcoin reaches the equivalent of the global amount of money in circulation, that is $90T.
Applying a simple rule of three, this would give us a price of about $4.2 million for one Bitcoin.
This figure may sound crazy to you, but it clearly isn’t if you have complete confidence in Bitcoin and what it is trying to build for the future.
With such a level of confidence in Bitcoin, you will easily be able to take action whether Bitcoin price is $3K or $10K.
On the other hand, if you don’t believe in Bitcoin, its price will always be too high, and you will never take action.
Bitcoin Rewards Those Who Truly Believe in It and Take Action
Bitcoin has been advancing at its own pace since its creation by Satoshi Nakamoto on January 3, 2009. It has proven to be a special case since its price is not correlated to any other asset.
Day after day, block after block, Bitcoin continues to move forward in building a fairer and freer world for all in the future.
Launched in complete anonymity, Bitcoin has become in just over 11 years the only credible alternative to the current monetary and financial system.
Bitcoiners are growing in numbers, and even its fiercest opponents are really starting to fear it. This is the ultimate proof that Bitcoin continues to move in the right direction.
Once you’ve taken the time to understand what Bitcoin is, and why the total paradigm shift it proposes is a revolution, you will clearly no longer have any doubts. You will be able to truly believe in Bitcoin.
If you have complete confidence in Bitcoin, you won’t find its price too expensive, and you’ll be able to take action to buy it whether its price is $3K, $10K, or even $20K.
If you don’t trust Bitcoin, and that is your right, it will always seem too expensive to you.
A psychological brake will always prevent you from taking action, and you may have regrets in the future when you realize that you missed the Bitcoin train.
It’s up to you to know what you want to do for your future with full knowledge of the causes.