Buying Bitcoins: Too Late?

Jan 1, 2017. Price of Bitcoin: $974

Nov 21, 2017. Price of Bitcoin: $8200

One of the bigger economic waves of 2017 has been Bitcoin and its growth. It’s evolved from a very polarizing economic issue into a slightly polarizing topic with a strong core base and an almost solid network effect advantage. I don’t make a pro-bitcoin argument here but I attempt to clarify a few questions about the process of buying bitcoin.

The pro-Bitcoin community (tech enthusiasts, some financial experts, Silicon Valley, some government folks, some folks in academia etc) consensus is that bitcoin remains a store of value in the sense in which gold acts as a store of value and it combines the advantages of gold (fixed supply and fixed inflation) with some advantages of cash (high portability and fungibility). There is still a community split on how effectively bitcoin can be used as a payment system.

Big Point:

You can buy Bitcoin in almost every country in the world — including Nigeria.

Is it too late to buy bitcoin?

The short answer is no.

Bitcoin vs Gold Popularity. Source: Google Trends, Bloomberg.
  1. The sentiment around this concern is usually around “missed growth”. It’s often wrongly evaluated. There is a lot of potential for growth (in adoption and in value). Less than 1 percent of the global population owns bitcoin and bitcoin’s total valuation is less than 1% of the total valuation of gold yet interest and steam is on the rise.

Will Bitcoin continue to grow?

Hard problems: predicting the future ;)

Goes without saying, this still belongs to the high-risk pile of securities. There are significant dangers with pouring your money and you should evaluate your risk tolerance and not pour more than you can afford to lose.

Risks:

  • Hacks: there was a famous hack that led to the loss of almost a million coins (7% of total bitcoins in circulation) on an exchange called MtGox and led to bankruptcy in 2014. Bitcoin’s price tanked by about 30%)

A decision to buy or invest in bitcoin should be as a result of due diligence and willingness to hold for a long time but your rationale to not buy should NOT be from fear of “is it too late?”

Where can I buy Bitcoin in Nigeria

Reliable Vendors:

More Reading: Bullish Insights on Bitcoin

Cofounder, Helicarrier. Custodian, Aleph Fellowship.

Cofounder, Helicarrier. Custodian, Aleph Fellowship.