For those hold and sell investors, this trend could be scary. Is it a bubble? Of course! Any parabolic growth is a bubble. However, is it time to sell or hold? Here are my few thoughts on this.
Luckily, I don’t really care if the price is up or not since I am not a “buy and hold” investor. I am in a special position where I am purchasing bitcoin in US market and sell it in Asian market when there is certain price spread. (Yet, I do think that I should have held some of them. =p)
So, is it a right time to buy or not? I personally think that there is still some gains to come. Here is why.
For those who tried to open bitcoin trading account, you know how long it takes and how there are so many documents you need to prepare. For that matter, you need to take very close attention to every detail to get yourself verified and you need to be somewhat computer savvy. You need to scan/take pictures of documents and submit to the trading website. Think about it, can your mom and dad can do it? They may know how to check emails but taking pictures on your cell phone and attaching that to an email account is a totally different level of a task. Have you ever tried to teach your parents how to do it? I remember teaching my parents years ago and they still ask some steps time to time.
How about Google Authenticator? Do they know how to set that up? Do they know how to use it on the phone and computer when logging in? Do they know what 2-step authentication is? Do they understand blockchain? Digital wallet?
There is a huge learning curve with many topics related to recent technology bound with a computer. That eliminates our moms and pops. So are grandparents. I know some of them can be savvy. In general population, I don’t think not even 90% in age more than 50s know how to set up a bitcoin trading account.
Let’s talk about the rest of us, who have some knowledge of tech and computer. They know what bitcoin is and it is in a boom. At least for my side of peers, they have no clue how to trade it. They want to get on the ride of the uptrend and many are trying to figure it out as I type here. Here is the graph of Blockchain user. This is the linear scale.
At the moment, it’s hitting about a bit more than 20 million users. It is showing exponential growth but not at the peak yet. People are still figuring out. People are still learning about it. Is there more room for people to come in? Definitely. As they do learn and join, there will be an increase in price.
I personally think that there is still more room to spike up. I am not sure how much more but passing $20,000 won’t be a problem at all. Some do predict $50,000/bitcoin. I see the possibility also.
Let’s see how this story unfolds. I am so excited! >=]