Bitcoins early history
It all started at the end of November 2013 when BTC jumped from around $100 to $1000 USD for a 10x gain in just 1 month!!
For the earlier adopters, it was a huge discussion topic! The thoughts were that it was an amazing technology and it will destroy the future of FIAT currencies.. what caused the price to go up? Is the ugly truth that bitcoin could just be a ponzi scheme?
Mt. Gox
There weren't many exchanges back then, but one was Mt. Gox. A few months later (Feb 2014), Mt. Gox was apparently hacked, trust was lost and everybody sold (i guess those not with their bitcoin in Mt. Gox).
It seemed the naysayeers were proven right as the price collapsed pretty quickly back to around the $250 level. First it dropped around 50% and then slowly a further 50% before reaching the $250 level by the end of 2014.
The price appeared to go nowhere through most of 2015 until November when there were spikes appearing.. However, THAT is when we all should have bought bitcoin and in 2 years we would be walking away with 100x our money !! yaaaay!!!
Before we knew that we should just HODL, how do we know that we would have held onto bitcoin if we had bought it for $1 in 2011?? What about when it went to $200?, should we have taken a 200% profit? or when it reached $1000 and take a 1000% return?? or now when it is at $40000?? How do we know when to enter or exit the market?
With stock market investing, it is common knowledge that timing the market is a fools game. Time in the market beats timing the market. So what is different with bitcoin? Is it investing or just speculation?
Is the ugly truth about bitcoin that it is not investing but is purely a speculation play?
Will it revolutionise the future of money?
Let me know in the comments! ;-)