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According to an early adopter, the ultimate time to buy bitcoin is when no one is talking about it.
“The best time to buy Bitcoin is when there is blood on the streets and everyone is panicking and nobody is talking about it,” the investor, who prefers to remain anonymous, told insiders in a telephone interview from Manila, Philippines.
In 2013, he first bought 2.5 bitcoins from a seller named “Mang Sweeney” on LocalBitcoins.com when the cryptocurrency was trading at $ 100 per coin. “Mang” means a sign of respect in the local language in the Philippines.
At that point, the platform enabled face-to-face meetings, after which the seller transferred the cryptocurrency on-site using his laptop or mobile phone. Mang Sweeney was already trading in Bitcoin when it was worth $ 10 a coin, as speculative buying and selling was popular even then, according to the anonymous buyer.
Nevertheless, the online interest in Bitcoin from 2013 to 2014 was nowhere near the current level. The chart below shows how Google searches for “Bitcoin” in the Philippines has grown steadily since that period, peaking in late 2017 when the price hit a record high. It went down over the course of 2018 but came back last year.
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“People forget this is not the first bubble,” said the investor. “Until people understand the technology, it will always be a speculative advantage.”
The early bitcoin buyer said he does not advise friends and family to trade the token if it is in the bubble area. “If no one wants to touch it, you buy it. Not when people talk about it,” he said.
Bitcoin’s deflationary nature advises against using it as real currency. He lost 16 bitcoins in the Japanese cryptocurrency exchange. Gox, one of the few exchanges that early adopters could trade on. It was abruptly closed in 2014 after its collapse after hackers apparently raided the stock market. Almost 850,000 bitcoins from investors were lost.
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Anyone who hits the $ 100,000-150,000 level is actually discharging their Bitcoin investments bit by bit while saying that they will reach a certain price as some of them have already amassed large amounts.
“The only reason I would tell people to bother with it is that it is important to understand how it works and how to take care of it. If you are dealing with passwords or a simple two-factor Unfamiliar with authentication, you’re good to go. People are going to steal your bitcoin, “he warned.
However, there are voices warning investors that Bitcoin is beginning to be viewed as digital gold.
“For Bitcoin to be included in a portfolio and become an investable asset similar to gold, the asset must improve the risk / return profile of that portfolio,” said Gerald Moser, chief market strategist at Barclays Private Bank. “That seems like a big job.”
While it is nearly impossible to forecast an expected return on Bitcoin, its volatility makes the asset almost “non-investable” from a portfolio perspective, he said.
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