From $0.06 to $10,721: Lessons from Bitcoin Value Increase

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I should have shared this yesterday which was September 30th but unfortunately, I couldn't because certain constraints. Howbeit, the message will still be delivered. I came across a tweet by a certain BitcoinMagazine user and it caused me to stop and ponder on certain issues. At the same time, I drew some lessons about cryptocurrency.


Lesson One: Cryptocurrency is not a get-rich-quick scheme but it can give you some level of financial freedom if you can be patient. People who invest in cryptocurrency with the mindset of just getting quick gains only miss a lot compared to long-term investing. Warren Buffet once said that, " sellers make profits but hodlers get rich" and I concur. Hodling could be hard especially for those who don't have other offline sources of income for meeting daily needs but we should endeavour to make long-term plans. Don't only live for today rather plan for your next 8-10 years or above.

To further buttress the above fact and show the importance of hodling, let us look back at the screenshot above. In 2010, by then I knew nothing about cryptocurrency though, Bitcoin was valued at just $0.06 which is a miserly 30 NGN in my local currency. At this rate, I could have bought a whole lot but I wasn't into cryptocurrency yet. You'd agree with me that many persons bought BTC at that rate but only a few still hold it till date. And now I ask, the one who sold off before now following the little increase in BTC price and the one who held it till date, who makes the most gains? So, we see that hodling pays more and it is the simplest and best trading strategy.


At the same time, it is not every coin one should hold on to for long-term; some coins are just for immediate profits because they lack sustainable plans on. Hodling shit coins will only bring you losses. It is then left for the investor to decipher between shit coins and coins that'll will grow at the long run. This brings us to my next lesson.


Adoption and Utility is key to value increase
No cryptocurrency just stays on its own to have an increase in price. Cryptocurrency is purely mathematics and nothing more. The price of any cryptocurrency is determined by dividing the circulating supply by the market cap. Market cap is just the amount of money that has been invested in any cryptocurrency project. The higher the market cap, the higher the coin price. As at 2010, bitcoin had very little adoption and hence, little market cap but as investment (adoption) started coming into the coin, price increase happened.

To gain adoption, use cases must be in place for any cryptocurrency project. This is why cryptocurrencies that have no use cases end up as shit coins. Bitcoin brought a financial revolution and gave an easy/ less stressful way to make financial transactions. That served as its use case which gave rise to its adoption. And as we know, many persons are now buying into bitcoin. Those who doubted have now seen that Bitcoin is better than gold. And by implication, BTC price will go higher than it is today.


And lastly, "be an early adopter; join a crypto start-up today"
There are lots of benefits in being an early adopter and I won't stress that. It is always better to invest in a cryptocurrency project when it is in its baby stage than when it has grown. For example, it was easier to invest in BTC 10 years ago than it is today. Yes! It is still possible to invest in BTC today by it will require more capital than it would have years back.

There are still many cryptocurrency projects in its baby stage but having great potentials and impressive roadmaps. It's left for you to find them and adopt them early. I missed the opportunity to invest in certain projects early and I won't make such mistake any more. Remember that, cryptocurrency growth isn't spontaneous but gradual. Learn to be patient to make the most out of any good cryptocurrency project.

Posted Using LeoFinance Beta



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2 comments
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Si realmente estas en lo cierto hay que invertir iniciando

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I 10 years from 0.06$ to above 10000$ and so on that a lot of profit for people who buy early

Posted via neoxian.city | The City of Neoxian

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