There are a lot of misconceptions about the value of Bitcoin and how it performs in the short term. In this section, we will try to clarify how Bitcoin will fail to appeal to those who see it as a quick-profit scheme.
Why Bitcoin will fail short term expectations?
When it comes to Bitcoin, we can separate investors into two different types.
- There are the “Mercenaries” that are in it just for the money and for the big opportunity of short-term payoffs.
- And then there are the “Missionaries”. Those are people that support projects in the long run.
While mercenaries see the price of Bitcoin in green dollar bills, missionaries focus on the potential of the technology.
When talking about Bitcoin, short-term thinkers will form their opinion based on market sentiment.
If Bitcoin’s price is climbing, they will be happy. If not, they will curse it and blame anyone who opposes it.
On the other hand, missionaries look at the impact this technology has had to this day. They have witnessed Bitcoin’s astronomical value increase since 2009 and they believe there’s a lot more potential in the future.
Which brings us to the next point.
How will Bitcoin perform in the long term?
If we can learn something from history, it’s that Bitcoin keeps growing.
Even though its price has seen some big drops and a few bear markets, it has proven to be one of the best assets of the decade.
The mainstream public is getting interested in cryptocurrencies. And because of that, multiple companies are working to make crypto more accessible to the public.
Add to this the upcoming halving in 2020 and Bitcoin could see its value decuple in the following years.
How to prepare for the next run-up in BTC’s price?
So, how can you prepare yourself for the upcoming bull run?
Before you invest in Bitcoin, you must understand that it’s a very volatile asset. Its price can fluctuate for various reasons, and losing a part of your investment is a risk you should consider. Therefore, never invest more than you can afford to lose.
Furthermore, try to be careful where you take your investment advice from. Social media is not where you should be looking for investment tips, as sources can be unreliable or downright misleading.
Instead, our best option is to do your own research before you enter the Bitcoin market. Follow cryptocurrency news, price action, and world events to get an idea of the ideal time to buy Bitcoin.
Finally, a good rule of thumb is to draw out an investment plan with clear goals. This will help you stick to your objective and ensure the steady growth of your Bitcoin portfolio.