Everyone is talking about cryptocurrencies. The intense pop culture hype surrounding cryptocurrencies reached their peak in late 2017. It seemed like everyone wanted to know exactly what the cryptocurrency market was about and how to cash in. Still, logic dictates that for something to have to a peak, it must also have a valley.
Barring some surprise investing hype comeback, it was probably too late a long time ago for you to benefit from cryptocurrency investing. The financial market trading value of a single Bitcoin was worth $19,783 on December 17, 2017. Presently, that trading market valued has cratered by about 70%. Today, the trading value of one Bitcoin is about $4,100. Not only is it steadily decreasing each day, but the cryptocurrency market is expected to continue to drop in value as part of what is now known as the “crypto collapse.”
Is it Too Late for the Cryptocurrency Market?
Investing is all about timing. Executing buying and selling activities based on maximizing the peak value of the investment at the right time. It is never wise to invest on a whim. Prudent investing strategies are based on exacting research, situational awareness of market activities, and timing.
If you still plan on investing in cryptocurrencies, you may need to pick your poison. Everyone knows about Bitcoin, but now there are thousands of cryptocurrencies. What was once an in-the-know investment ideal is now a pop culture phenomenon. Everyone wants in on cryptocurrencies now. Unless you have an informed and strategic investment angle, you probably missed the boat.
The trading market value of all cryptocurrencies have plummeted since the start of 2018. In January 2018, the total financial market capitalization of cryptocurrencies was worth about $800 billion dollars. By October 2018, that same market capitalization valued dropped to about 204 billion dollars.
Keep in mind that there are about 2,400 different cryptocurrencies and counting. If you plan to start investing now, you won’t be dealing with the peak value of those cryptocurrencies. Until another cryptocurrency boom comes along, you missed the historic value peak of December 2017. Not just for Bitcoin, but for the cryptocurrency market as a whole.
Bitcoin at Zero
The people who truly made out like bandits in cryptocurrency investments did so years ago. In 2009, 2010, and 2011, the trading value of Bitcoin was nothing. Its trading value then gradually rose to that of about a few pennies. Anyone who bought a few thousand Bitcoin in those early years become overnight millionaires in December 2017.
Just as long as they sold or traded their investments in December 2017. Remember, the value of Bitcoin has depreciated greatly over the past eight months. Investment is all about timing.
Some cryptocurrencies, like Bitcoin, require the use of expensive computer hardware and software to create them. You must use computers called, “mining rigs.” These are computers with extraordinary processing power. To gain Bitcoins, you must use mining rigs to compute extraordinarily complex mathematical algorithms. Once solved, Bitcoins are earned.
However, the startup and break-even cost to mine Bitcoin are high. The break-even cost is about $7,300. You’ll spend thousands, or more, on mining rig equipment. Then you’ll spend hundreds or thousands for maintenance, since such equipment is known for overheating.
Mining rig operations require a lot of electricity. So, that is another expense. The point is that your initial startup costs for cryptocurrency mining may take a long time to be recouped.
Timing Is Everything
There are almost 2,500 cryptocurrencies now. New ones are being created every day. A decade ago, cryptocurrencies were a fringe investment practice. Now, everyone wants in on it. A new cryptocurrency may come along to entice manic investing again. Anything is possible. Until then, you probably missed the boat.
Do you think it’s too late to get in on the cryptocurrency market? Let us know in the comments below!