Immigrants to Canada and entrepreneurs are always looking for smart ways to quickly make or grow their wealth. Bitcoin and cryptos, on the face of it seem to present the way to that Eldorado! The seemingly unstoppable rise of Bitcoin has continued with the cost of a single unit of the digital currency now standing at a jaw-dropping $59,000. This time last year, it was less than $20,000 and falling.
Retail consumers, immigrants and amateur investors all over the world are caught up in the Bitcoin frenzy. A bigger reason for the massive price rise is that there has been a big influx of investors from large-scale institutions such as pension schemes, university endowment funds and investment trusts.
Tesla’s iconoclastic chief executive Elon Musk also got on the bitcoin train lately, purchasing $1.5 billion worth of Bitcoin and confirming acceptance of payments in the crypto. A possible Bitcoin crash is not a deterrent. Additionally because Bitcoin is in limited supply, it is seen as a hedge against inflation.
Bitcoin’s lure is irresistible. People jump in to make money as they see the price climbing, further driving up the price. They panic when prices slip and they quickly sell. What a fine recipe for heart attack!
- In 2011, Bitcoin jumped by 3200% from just $1 to $32
- Later that same year, the price crashed by 93%
- In 2013, it moved from $13 to $.220. By April it collapsed to $70. And by December it was up again to $1156
- Up and down from 2015-2017
- 2017 saw the biggest move, flying from $1000 to $20,089
- Slumped from 2017-2019
- 2020, the year of the pandemic, Bitcoin skyrocketed from $7200 to over $32,000
Now in 2021, and towering at almost $60,000, Bitcoin history is still in the making. The big question as always, remains will Bitcoin price crash or will it continue to set new records?Should you as a newcomer entrepreneur dive into the Bitcoin market now for Fear of Losing Out (FOMO)? Or should you just let this jet train quickly pass by?
The Business Immigrant counsels it might be wise to try the best of both worlds and find the sweet spot between safety and opportunity. Allocate only a portion of your portfolio to Bitcoin. Forbes’ Taylor Tepper suggests a max of 10%
Still itching for the Bitcoin action? It’s worth remembering the sacred law that whatever goes up will come down. Who knows whether the law of gravity will make an exception with Bitcoin.
Photo credit: Lukerobert