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I once watched a commercial abroad that had preschoolers given a single doughnut. A friendly lady then tells them they have 2 choices. They could eat it straight away - or if they waited 5 minutes and didn’t touch the treat in front of them, she’d return with 2 treats and they could have them both. The child was then ‘left alone’ in the room with the sweet temptation sitting right in front of them while the cameras rolled behind a one-way mirror. The looks of contemplation, determination and mostly exasperation were hilarious. 5 minutes is like a lifetime when you’re 4 years old, you know.
Some couldn’t bear the allure and gave in within mere moments, guzzling down the sugary prize before the lady returned. One child thought he was very clever and tried to get a lick in without disturbing any of the icing to give away his 'taste test' attempt. A few were slightly more resilient, examining their potential treat from all angles, being very careful not to physically touch it. And only a couple made it through the entire waiting period, staring longingly but never once flinching, being rewarded with a double dose of doughnutty goodness for their patience and endurance.
Instant gratification: it’s a killer!
Not only for the few young souls who couldn’t bear the sight of the perfectly iced treat placed in front of them ripe for devouring, but for the many who cave at the temptation of a quick gain as opposed to waiting out for an exponentially larger return in the long run.
Investing in Bitcoin is a prime example.
Many panic at the slightest movement in price and flurry to buy or sell accordingly. And move it does! Bitcoin, whilst certainly far more stable than in previous years, is still making its way out of a fairly volatile period and market consolidation.
For those investors with a short-term view, and looking for instant wins, Bitcoin is a risky commodity. On the other hand, those with a long-term outlook are starting to see grand rewards for their patience and resilience to emotional trading. In fact, recent market reports indicate that the price of bitcoin has doubled in growth over the last 12 month period. On the 26th April 2016, bitcoin reached an inter-day high of $470, more than 100% of the inter-day high of $219 for the same day in 2015. Great news for buy-and-hold investors.
While it’s good to keep an eye on the bitcoin market and meaningful metrics, having a knee-jerk reaction to every dip and surge could leave you emotionally drained and financially weary. Precisely the reason Bitstocks customers entrust us with their bitcoin investments. We track the market on their behalf and provide recommendations based on sound investment choices.
Has bitcoin reached its peak? Not in the least!
It’s our opinion that the bitcoin price will continue to show steady growth as the technology matures, adoption increases, venture capital inflow continues and we see a halving of the mining reward (slowing the rate of supply) likely in Q3 of 2016. There’s a host of fundamental reasons playing out economically and politically at the moment that could accelerate the growth well beyond the previous all-time high of over $1,240 in November of 2013.
And we’re waiting for it. Patiently.
Because unlike the poor preschoolers, who had no way of knowing whether that kind lady would return with their doubled-up incentive, we’re confident in bitcoin’s growth and the subsequent gains to be made - and it's looking sweeter than ever.