Are You Prepared for a $100,000 Bitcoin?
The price of bitcoin is rising over time.
Are you prepared for a $100,000 bitcoin?
Are you prepared for $50,000?
Or, maybe just a $30,000–40,000 bitcoin?
If the answer is no, then you need to take a moment to consider what you will do, if anything, when bitcoin reaches unprecedented prices.
Bitcoin was created by Satoshi Nakamoto to empower the individual. It did that. Now, legacy financial players have entered the space and the stakes have changed.
2020 Set New Highs
Bitcoin recaptured the seemingly elusive $20,000 price point. It took three years, but it did it. And not just that — bitcoin crushed $20,000.
We’re waiting to see what bitcoin does next. It’s in price discovery mode as we enter the start of 2021. BUT, we witnessed it reclaim new all time highs, repeatedly, throughout December 2020.
$20K Significance
$20,000 is significant for a number of reasons.
Back in 2017, $20,000 was widely cited as the high.
In reality though, the rise to that price point was so rapid that few traders realized their gains or were even looking at a chart when bitcoin hit $20,000 in realtime.
The 2017 rise to $20,000 was so rapid that few traders realized their gains or were even looking at a chart when bitcoin hit $20,000 in realtime.
Bitcoin didn’t hang around $20,000 for very long. By the end of January 2018, bitcoin had nearly cut it’s price in half.
Profit taking would occur throughout all of 2018.
The impending aftermath of the ICO craze didn’t help either. Bitcoin cratered, ending 2018 under $4,000 on most cryptocurrency exchanges.
The Fight for $20,000
It was a painstaking fight to reclaim $20,000.
2019 brought bitcoin back from wilderness. Many left the space, burned by the fallout of certain ICOs. Those that remained, however, must be recognized for their unwavering conviction.
The steady ascent to $20,000 once again seemed possible, culminating with unprecedented quantitative easing in 2020 due to the global pandemic, a bitcoin halving, and a massive influx of money into bitcoin.
Bull Markets Test Conviction Too
It’s one thing to praise the HODLers — those who bought bitcoin years ago, who have been buying it regularly for years, evangelizing about its promise, those who held during the bear market of 2018.
It’s another thing entirely to HODL during a bull market.
Bull markets test conviction too. They may test it EVEN MORE than bear markets. Watching the price go up, rapidly, can do wild things to the psyche.
Do You Have a Sell Price?
Are you ever planning to sell your bitcoin and at what price? Do you have a plan for what you will do when it hits that number?
If 2020 has shown us anything, it’s that bitcoin can rise thousands of dollars in a matter of weeks, days, or even hours.
Many of us were already aware of this, but there are more people in the space today than there were in 2017. And there are a heck of a lot more people than in 2013.
Start Planning Now
You may not be planning to ever sell your bitcoin.
That’s cool. Keep stacking sats and HODL.
But now is a good time to revisit that thought and ensure you’re capable of sticking to it when the numbers go up, rapidly.
Are you truly prepared to watch bitcoin hit prices like $50,000 or $100,000? What about $200,000 or $300,000?
Large institutional buyers have entered the market between $15,000–25,000. That means that they aren’t going anywhere without a sizable return on their investment.
Retail and institutional interest, combined with a growing understanding of bitcoin as digital gold, is pushing the price higher.
Ask Yourself the Question
Are you prepared for a $100,000 bitcoin? This means both mentally and logistically, especially if you plan to trade at this or any other unprecedented price point.
Now is the time to step away and ask yourself the question. This is not financial advice one way or another, but it is a reminder to check in with yourself, your conviction around bitcoin, and ensure you have a plan.
Bitcoin can rise quickly. It can fall quickly too.
I’m not a trader.
Most people aren’t cut out to be.
Read this for some factors to consider when buying bitcoin.
When it comes to selling or holding during a wild bull market though, you will need to be prepared. It takes a whole lot of conviction and fortitude to just do nothing when the prices spike.
Take a moment and decide whether or not you’re prepared for a $100,000 bitcoin.
Thanks for reading! I am not an investment or financial advisor. This is not financial advice. All opinions expressed are mine alone. If you want more content like this, sign up for my weekly email.