Bitcoin has been booming as of late, but according to one investor – who wishes to remain anonymous – this isn’t the best time to buy.
Anonymous Investor: Buy Bitcoin When People Aren’t Speaking About It
At first glance, one can understand where these words are coming from. After all, if something is spiking like there’s no tomorrow, the natural idea is that the asset will likely take a dip sometime in the future. That would likely be the best time to buy considering one can get it at a lesser price.
But according to the anonymous investor, things go a bit deeper. Ultimately, the best time to purchase bitcoin is when nobody’s talking about it, which obviously wouldn’t be right now considering how high Google searches for bitcoin have been lately.
The investor – allegedly from Manila in the Philippines – claims to be one of the currency’s earliest adopters. In an interview, he states:
The best time to buy bitcoin is whenever blood is on the street, everyone’s panicking and no one’s talking about it.
The holder purchased roughly two and a half bitcoins back in the year 2013. The purchase was made on Local Bitcoins at a time when each unit was going for about $100. Thus, it is estimated that the investor in question spent around $250 total. This was at a time when bitcoin didn’t have the attention it possesses today and given how much discussion is revolving around the world’s number one digital currency, the investor believes a bubble may be forming.
Furthermore, bitcoin has taken on new form over the last year in that many individuals now see the currency no longer as a purely speculative asset, but rather as a hedge tool. A store of wealth or product that can potentially keep one’s money safe during times of strife.
The investor doesn’t agree with this sentiment, claiming that there is still too much ignorance when it comes to bitcoin’s technology and background. He says that without proper education instilled in people’s minds, bitcoin will never be anything other than a speculative item.
People forget this isn’t the first bubble. Until people understand the technology of it, it will always be a speculative asset… When no one wants to touch it, that’s when you buy it. Not when people are talking about it.
He claims he’s had a somewhat negative history with the coin, having lost about 16 units of BTC in the Mt. Gox disaster of 2014. He also states that all the analysts out there who claim bitcoin could reach six figures in the future are secretly selling their BTC stashes and potentially misleading the public.
The Technology Is important to Know
The only reason I would tell people to dabble in it is because it’s important to understand how it works and how to take care of it.