It's interesting to see patterns start to emerge with Bitcoin, and right now after more or less stagnating for the past three or four months, Bitcoin looks to be rebounding. How high will it go this time? I have no idea, but it sure would be awesome if it could break the previous top from last December! I have been hoping something like this would happen, and right on schedule (two weeks before Thanksgiving) we're starting to pick up steam. So here's the question: do you buy BTC now and speculate, or just sit back and watch?
Thankfully, I'm in the position of having some BTC already, so I'm just hanging onto it and seeing where things go -- I'm in this for the long haul at this point. However, I'm also in no hurry to dump thousands of dollars into BTC in hopes that it goes even higher after the investment. Sadly, I just don't have that sort of disposable income hanging around. For those who do, however, I think if you can just dump a few thousand (or a few tens of thousands) into Bitcoin and then turn a blind eye for a couple years, this is about as good a time as any to take that chance -- actually, it was a better time last month when we were at $300 or so, but whatever.
The fact is, more and more businesses are starting to adopt Bitcoin, and I think some of them are going to start saying, "Hey, instead of cashing out 100% to guarantee our profits, we ought to hang on to at least a few percent and see where things go." Can you imagine what would happen if places like Newegg decided to hold just 3% of all Bitcoins they receive? I don't know what sort of BTC volume they're doing, but it's definitely more than zero, and over months they would likely end up sitting on thousands of Bitcoins. If more companies take that same approach -- a calculated risk, so to speak -- supply and demand dictates that there will be fewer Bitcoins in circulation, and thus price will trend up.
It's important at times like this to remember: there will only ever be 21 million Bitcoins. The same coins can be used again and again with no deterioration in quality, yes, but more importantly if big companies start using Bitcoins -- and this is already starting to happen -- then a place that does millions of dollars in business per day will certainly cause some ripples by supporting BTC. In another year, we could easily be looking at five digits for Bitcoin.
I've mined and sold a lot of BTC over the past few years, but I'm glad that I've finally reached the point where I don't need to sell BTC to cover expenses. That means I can join the ranks of the true believers and simply sock away everything I earn going forward. I won't be surprised if 20-30 years from now when I'm retired, most of my retirement savings consist of BTC that I can live off for the remainder of my days. Now if I can just get universities to accept BTC for tuition, I might have my kids' education paid for as well in the coming months.