I remember the day when Bitcoin was "overvalued" at $800. Bitcoin was exploding for the first time and really gaining mainstream media attention. You actually heard about this weird concept for a coin being talked about on the news. Funny bald men with funny facial hair were suddenly experts on the idea of Cryptocurrency overnight and were talking about how it was likely to fail. They were old money, and many of them were simply biased and rooting against this new coin.
After it shot up in December 2013, I was made a true believer and placed my money where my mouth was...only to have it all come tumbling down shortly after. The lesson I learned was this, Bitcoin is incredibly difficult to time. As many dumbass graphs and charts as I've seen being posted on Reddit to make claims of resistance and support levels simply do not apply in this use case. There is no blueprint for what we are witnessing here. It truly is a global currency. As bitcoin continued to dip lower, I continued to buy the dips. I not going all in like some madman from the very beginning was the best option. This rocket to the moon would take off again, but it sure as hell would be a slow painful burn on it's way back up. The lowest amount I bought in for was just over $200 a coin. I was still convinced in the tech, but had my doubts now more than ever.
I think the thing that kept me going the most was the power of meme culture. The forums really bonded around the craziness that is Bitcoin, from the legendary ToTheMoonGuy ┗(°0°)┛ and the countless GIFS of Neo, Morpheus, and HODLING forever, I got amusement watching this crazy roller coaster of a ride.
Then year 2 of my personal experiment hit me, and the currency became boring. It traded sideways and anytime I checked in it never made much headway gaining back what was lost. However I HODLED tight and sure enough, 4 years later Bitcoin is paying out in spades.
I believe that's the lesson to be learned here during this craziness. There are several parallels between the Cryptocurrency boom and the .com boom of the 90s. The question you have to ask yourself is, are you betting on a Pets.com or another Amazon? (Which by the way, is up 6,500% as of the time of this post - so Bitcoin has a long way to go). I'm not at the point where I'll argue that Bitcoin is as valuable as Amazon yet - and yet is the key word here. There's tremendous potential, but that's what it means to be an early adopter. You're attaching value to that inherent risk.
So while some people will continue to argue whether Bitcoin is a worthwhile investment at all, or whether it's already overvalued and that other cryptos are the way to go, I'm gladly putting more money into Bitcoin as we speak. This rocket has a lot of fuel in it left, and as the legendary Satoshi Nakamoto once said, "If you don't believe me or don't get it, I don't have time to try to convince you, sorry."
http://satoshi.nakamotoinstitute.org/posts/bitcointalk/287/#selection-35.202-35.291!
