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Crypto News Updates

Despite The Dip, The Bitcoin Market Is Bullish As Ever

There are several reasons why this bull market is set to continue, as reviewed in This Week In Bitcoin.

This Week In Bitcoin is a new segment covering the events of the week that occurred in the Bitcoin industry, covering all the important news and analysis.

Summary

This was the week of El Salvador. Since President Nayib Bukele’s announcement in Miami at Bitcoin 2021 that El Salvador would adopt bitcoin as legal tender, the internet has been ablaze. The country’s parliament has since made it official, voting with a supermajority in favor of the bill. There have also been talks of setting up mining operations in the country and allowing investors with 3 BTC or more to take up El Salvadoran residency, prompting other Central American countries to signal interest in following their lead. I have long said that the first country to officially adopt bitcoin will be a pioneer and this week El Salvador did just that.

In other news: The “Bitcoin Mining Council” launched their mission statement, China’s crackdown on crypto continued, former U.S. President Donald Trump dissed Bitcoin, several wallet and mining firms raised fresh funding and US inflation hit its highest rate since the 2008 financial crisis.

Highlights

Bullish News

Yes, many bits of bullish news this week would appear to be related to El Salvador, with most Bitcoiners hearing the country’s name enough times in the last week to last a lifetime, but the fun has only just begun. The nation:

  1. Announced Bitcoin’s adoption in the country to pass the bill.
  2. Offered solutions to mining and investment.
  3. And initiated a nationwide rollout.

All in less than a week, whereas something similar would take years in other countries wrapped up in bureaucracy. Countries such as Panama, and Argentina have expressed interest in following in their footsteps.

Besides that, Taproot has cleared it’s last hurdle over the weekend as it locked in, signaling a new chapter for Bitcoin. This “transition” was relatively smooth sailing compared to the blocksize squabbles of 2017, if you were paying attention back then. Then there is Michael Saylor and MicroStrategy raising more funds to buy bitcoin, and with the interest in the bonds they’re issuing being sky-high, there were rumors that the Fed would buy some as well.

Overall, it was a solidly bullish week in Bitcoin, and the news and major developments in the market are yet to be reflected in bitcoin’s price.

Bearish News

But not all news is good news. The “Bitcoin Mining Council” released their mission statement which possibly paves the way for centralization in mining. Not to mention Elon Musk is involved, who has proven time and time again that he might not have Bitcoin and the community’s best interests at heart.

Furthermore, India and China continued their onslaught on Bitcoin and the crypto market in general. Although no definitive steps have been taken, it is something to keep an eye out for. The International Monetary Fund (IMF) has been vocal about their disapproval of El Salvador’s bitcoin adoption and it’s likely that they are going to seek ways of attacking bitcoin and anyone associated with it, especially to dissuade more countries from following in El Salvador’s footsteps.

Verdict

Taproot activation is a certainty at this point after it was locked in over the weekend. This soft fork will expand on Bitcoin’s smart contract flexibility, while offering more privacy in doing so, as covered in an extensive piece back in 2019. Taproot is set to activate in November and will greatly enhance Bitcoin’s current ecosystem.

El Salvador’s bitcoin adoption is a done deal. Investors such as Justin Sun have made it clear that they plan to set up shop in the Central American country as it opens up its borders and economy to Bitcoiners. The country’s plans to enable 100% clean bitcoin-mining through it’s geothermal volcanic power plants will quiet the haters who have (falsely) claimed bitcoin mining to be a large contributor to climate change and will pave the way for more miners to adopt green mining initiatives.

With US inflation hitting highs not seen since 2008, developing nations that have grown reliant on the US dollar as a reserve currency and hedge against inflation in their own countries are likely to favor bitcoin in the months and years ahead. This could prove bearish as everyone from the US government to the IMF, World Bank and others may push against Bitcoin and use their power and influence to combat bitcoin adoption.

What is most newsworthy, however, is the fact that El Salvador managed to announce and pass a bill with a supermajority vote in less than a week, showing their commitment to executing their plans and not just being “all talk.” Other nations are likely to follow, but El Salvador will be critical in establishing bitcoin as a “global standard” and showing the benefit of adopting it to other struggling and emerging economies, with African nations the most likely prospects to follow suit next.

Overall, the last week has been a truly game-changing one for Bitcoin. The price may not yet reflect that yet, and maybe won’t for a while, but Bitcoin is certainly becoming a household name and we are still in the early days. As many would agree, bitcoin’s price is highly undervalued at the moment.

This is a guest post by Dion Guillaume. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

Source: Bitcoin magazine

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Crypto News Updates

El Salvador Making Bitcoin Legal Tender Paves A Path For Bitcoin Adoption In Countries

This week, Bitcoin 2021 ruled the headlines as a major announcement about El Salvador came out of the conference.

This Week In Bitcoin

This Week In Bitcoin is a new segment covering the events of the week that occurred in the Bitcoin industry, covering all the important news and analysis.

Summary

Although bitcoin saw relatively steady gains over the last week, climbing to nearly $40,000, it was only a matter of time before Elon Musk started his fear, uncertainty and doubt (FUD) campaign again, tweeting a breakup meme alongside the Bitcoin hashtag early Friday morning, which sent the bitcoin price tumbling as much as 7%. Of course, this was to be expected since Musk cannot seem to resist spreading FUD, as he previously had with Tesla stock before the Securities and Exchange Commission (SEC) came knocking.

As the market geared up for Bitcoin 2021 in Miami this weekend, it seemed like there would be few developments during the week outside of the announcements at this conference. Indeed, El Salvador’s president announced that he will introduce a bill that would implement bitcoin as legal tender, becoming the first to do so and paving the way for others to follow. While this was major news coming from the conference, there was further news outside of Bitcoin 2021: Google lifted its 2018 ban on cryptocurrency advertisements on its network; the Finance Minister of Norway suggested an imminent breakout for bitcoin; Coinbase integrated its debit card with Apple and Google’s mobile wallets allowing payments with bitcoin; and Paxful launched Paxful Pay, allowing merchants to accept bitcoin as a payment method.

Highlights

Chart Of The Week

Bitcoin has been gearing up for a breakout this week, nearing $40,000 before Musk decided to rain on the parade. Along with the continuous FUD, the current dip is nothing new if you’re familiar with bitcoin’s movement over the last decade. The chart above, courtesy of Bloqport, analyses the 2017 bull run, and clearly shows there were several sizable dips on the run up to $20,000.. The current bull run is no different and although there are more eyes and hands on Bitcoin this time around, there is no reason not to expect a breakout soon.

Bullish: Short Term

As I mentioned last week, the current bull run is far from over, and experts such as Cathie Wood agree. More and more people are suggesting a price breakout is imminent, so why should we even consider that not to be the case?

El Salvador’s decision to”‘legalize” bitcoin and make it legal tender in the country is incredibly bullish. As the first country to do so, El Salvador will not only act as a “guinea pig”, but will also pave the way for other countries to follow. In all likelihood, emerging markets will be the first to follow suit, especially those utilizing the US dollar as their reserve currency. The United States’ move to issue more bonds and print more money will have an impact on the dollar’s value, affecting those most dependent on it. El Salvador may be the first of many countries to embrace bitcoin.

Google’s lifting of the ban on cryptocurrency ads will have a major impact on the market over the coming months as it will be easier to gather impressions on Bitcoin content. Similarly, as Coinbase, Paxful and others follow PayPal in enabling payment for goods and services using bitcoin, it’s likely to see adoption grow, even if most die-hard bitcoin users would suggest HODLing. The naysayers who have spent years saying bitcoin doesn’t qualify as a currency because you can’t spend it anywhere will go quiet, much like they do when price quickly ascends.

Institutional investors are seeing an increase in interest in assets such as bitcoin, with Standard Chartered and Guggenheim Investments both looking toward introducing funds with bitcoin exposure. Then there’s the Taproot upgrade that appears to be a done deal for the Bitcoin network as more and more miners signal their support. Taproot will bring more privacy, lower transaction fees and more flexibility around smart contracts on the Bitcoin network.

Bullish: Long Term

I am revising my long term outlook from last week to bullish. Although this bull run will eventually peak and see a sizable correction in the near future, there is increasing hope for bitcoin in the long term.

Besides miners moving to “greener” equipment and sources of electricity, states like Texas and countries like El Salvador’s favorable embrace of bitcoin is likely to generate more sovereign entities to follow suit. Companies moving to accept bitcoin will not only benefit consumers and merchants alike but the market as well, despite its volatility.

As the legal framework starts to form around the world for bitcoin, we’re likely to see more investors join the fray. Whether Bitcoiners like it or not, increasing amounts of institutional investors investing in bitcoin is likely to bring more individual investors, as the former brings more security and trust to the community for the latter.

Verdict

Saying things like “look at the bigger picture” or “every cloud has a silver lining” may seem cliché, but it’s true when approaching the current state of the market. Yes, it would be great to see a breakout and bitcoin surging past $65,000 in the next week or two, but it’s important to take a step back and look at what’s to come.

Bitcoin’s performance may not appear too favorable with the dips and sideways movement over the last few weeks, but it has remained relatively steady. I am sure the news and events from the past week have not been priced in, though whether that’s due to newcomers selling off in a panic or whales suppressing the price is unclear. What is clear is that Bitcoin is seeing a favourable reaction from the world. Countries are opening up to the idea of Bitcoin and large companies are jumping onboard.

Yes, Bitcoin still has a long way to go in terms of mass adoption, but it’s easy to forget that it’s market cap is in the hundreds of billions of dollars. The world’s leading investors and companies either hold it on their balance sheets or are considering doing so. One thing is for certain: Bitcoin has already made its mark and it is here to stay. No amount of FUD, misinformation or “expertise” can deny that.

Overall, the short term looks bright and, to use a phrase I read on Twitter,let’s shake out the “mayo hands” and get bitcoin to the moon.

This is a guest post by Dion Guillaume. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

Source: Bitcoin magazine

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Crypto News Updates

Last Week In Bitcoin: Billionaires, Texas, And Mining

Ray Dalio discussing his bitcoin investment, Texas pushing through a bill that provides legal framework, and more in this weekly update.

Last Week In Bitcoin is a new segment covering the week that occurred in Bitcoin, with all the important bits and some analysis.

Summary

Despite what the charts and current price may say, last week was a bullish week in Bitcoin. Billionaire Ray Dalio confirmed he is holding bitcoin, activist investor and former bitcoin doom prophet Carl Icahn expressed interest in pursuing crypto in a “big way” and Texas pushed through a bill that will provide a legal framework for bitcoin in the state, paving the way for Texas to become a crypto hub. China and Iran cracked down on bitcoin mining for the umpteenth time, and prominent investors Elon Musk and Michael Saylor announced formation of their Bitcoin Mining Council.

Highlights

A Chart To Consider

The chart above, courtesy of Bloomberg’s Global Macro Investor platform, compares bitcoin’s performance between 2010 and 2013 to between 2016 and now. As you can clearly see, we’re still overdue for a decent bull run which could likely peak somewhere around $400,000.

Of course, there are a lot more eyes on bitcoin this time around compared to a decade ago. The fear, uncertainty and doubt has increased as the media, billionaires, and many others pile on the anti-crypto sentiment. As we’ve seen over the years, bitcoin is a global community and its sole focus is a decentralized financial system where the power is in the hands of the people. Some might say even negative news is good news as it will introduce new people to the idea of bitcoin, and as they research it they may very likely decide to invest themselves.

Bullish: Short Term

Prominent investors are piling into bitcoin almost weekly now. Last week’s news that Ray Dalio holds bitcoin and Carl Icahn is interested also, just reiterates that no one can ignore bitcoin as a logical investment anymore. As prominent investors come on board bitcoin is perceived as even more legitimate to former skeptics which often has a positive effect on the overall price, further fueling bull runs. This current run could likely chart somewhere in the region of $400,000 over the next year, as shown in the chart above, and discussed in my previous piece comparing bitcoin’s performance after each halving. The most recent halving took place last year, kicking off the current bull market.

Bearish: Long Term

In an almost ironic twist, my reasons for being bearish long-term are almost the same as why I am bearish short-term. Billionaire investors and public companies joining the bitcoin bandwagon is both good and bad for price action. If bitcoin does eventually hit anywhere close to $400,000, the billionaires are likely to liquidate their positions with a fat short-term profit in hand. Similarly, public companies having seen a tremendous return on investment will likely see activist investors push to sell their holdings and pay out dividends to investors. Microstrategy should be safe as Michael Saylor controls most of the voting rights, but what about the rest of the publicly traded companies?

Verdict

I have little doubt that the current dip-intensive market we’re seeing is bitcoin finding its new bottom and stabilizing before the next boom. Yes, there will likely be several 20-30% dips before bitcoin hits its next peak, as seen during the 2017 bull run. However, as more and more people and companies embrace bitcoin as the future of the financial system, the price should reflect the same.

It’s important to keep a watchful eye on Texas and its lawmakers. As the state opens up to a more favourable legal framework, it is likely to invite investors and companies alike to relocate to Texas.This should act as inspiration for more states perhaps even some countries to follow suit and embrace bitcoin. View Texas as a trial run for now, but it is likely the start of big things to follow.

The effort to ban or curb bitcoin mining by some countries is another cause for concern, especially considering how much of the bitcoin hashrate is coming from China. Yes, on a positive note this should spread our mining operations worldwide, which will have the positive effect of creating a more decentralized hashrate. On the other hand, the formation of the Bitcoin Mining Council is also cause for concern, as it’s pushing a form of centralisation onto bitcoin mining.Should more miners move operations to the US and join this council, the possibility of a new form of centralization of power in the mining community looms.

What I haven’t mentioned above, is an important piece of information that came to light this week – Apple’s interest in hiring an executive with crypto experience. Some may speculate that Apple could be preparing a currency of its own, however this is unlikely. The more likely scenario is that they are opening up to bringing Bitcoin and other crypto payments onto their Apple Pay platform, and likely allowing crypto for app payments and acquiring devices. This would be very bullish. It is unlikely however that Apple will use some of their nearly $200 billion cash stockpile to invest in Bitcoin.

Overall, my sentiment is that this is the ideal time to stack some sats and build your holdings. The market is stabilizing, and even if there are a few more dips over the next week a bull run is imminent.

This is a guest post by Dion Guillaume. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

Source: Bitcoin magazine

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Crypto News Updates

Peer-To-Peer Bitcoin Trading Rising Across Africa

The conditions for growth are ripe as the continent embraces the freedom of Bitcoin.

Bitcoin was developed with the intent of putting financial control back in the hands of the people. In the years since its inception, Bitcoin adoption has grown worldwide. Recently, there has been a sharp increase in peer-to-peer bitcoin trading across Africa.

According to data from UsefulTulips, Ghana and Kenya have seen a steady increase in bitcoin trading, overtaking South Africa to become the second- and third-leading cryptocurrency markets in Africa during the first quarter of 2021. Nigeria, which recently saw a government crackdown on bitcoin, still leads the continent in bitcoin trading volume.

Trading volume in Nigeria surpassed $99.1 million between January and March 2021, followed by Kenya with $38.4 million, Ghana with $27.4 million and South Africa with $25.8 million. In 2020, Nigeria had a record-breaking $309 million in bitcoin trading volume, more than three times that of South Africa’s $98.4 million for the year.

The rise in volume in Ghana and Kenya can be attributed to favorable regulatory environments. Ghana’s Central Bank introduced regulations benefitting Bitcoin companies and startups, and the Central Bank of Kenya is reportedly considering adopting bitcoin as its reserve currency, likely fuelled by recent large investments in bitcoin by companies such as MicroStrategy and Tesla, which solidified its use as a store of value.

Meanwhile, the Nigerian government has instituted a nationwide crackdown on cryptocurrencies in recent months, as the Central Bank of Nigeria banned banks from processing bitcoin-related transactions. The South African government has also criticised Bitcoin after the recent collapse of the global Mirror Trading International Ponzi scheme, which was based in the country.

African citizens’ appetite for bitcoin has grown in recent years as financial uncertainty, rising poverty, government corruption and depreciating currencies have pushed individuals across the continent to look for more stable investments. The current global pandemic and recent surge in bitcoin’s value may have been factors as well.

This is a guest post by Dion Giullaume. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

Source: Bitcoin magazine

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Crypto News Updates

How Halvings Will Bring The Bitcoin Price To $400,000

The programmatic reduction in block reward creates a self-fulfilling prophecy of extremely bullish price action.

When bitcoin was first introduced, it had little to no value. Early adopters traded thousands of bitcoin for just a few dollars, until the infamous “Pizza Day” incident when Laszlo Hanyecz paid 10,000 BTC for two large pizzas, setting in motion a chain of events that lead to bitcoin’s value growing from a few cents to nearly $60,000 in just over a decade.

Bitcoin has come a long way since then, with large corporate institutions spending years denying its value as an investable asset, only to turn around and start investing in it themselves. Recently, PayPal introduced bitcoin as a payment method with millions of merchants that use its platform, celebrities like Paris Hilton joined the community and it seems that bitcoin is poised for even more growth.

By analyzing bitcoin’s past performance, it’s not impossible to get an idea of where its value is set to go next. Although many analysts and influencers alike have made bold predictions — like bitcoin growing to as much as $1 million — I thought it would be best to take a look for ourselves by analyzing each halving epoch, that is bitcoin’s performance between each halving event.

The chart below explores bitcoin’s value over the last 11 years, in four separate sections called the halving epochs:

The chart was inspired by a similar one I recently came across, which lacked any projections that I felt necessary to predict where bitcoin is heading next. As mentioned on the chart, each epoch is 20 times larger than the previous one and covers the times between each halving event. When analyzing and comparing each epoch, a clear trend emerges.

Epoch 1: Genesis Block (2009-01-03) to First Halving (2012-11-28)

In the first epoch, bitcoin found its footing after first being released by Satoshi Nakamoto in 2009. It took several months to see early adopters come on board and a dollar-based value be established, with Laszlo Hanyecz’s 10,000 BTC pizzas cementing its price. During this time, bitcoin saw its value rise from $0,00 to as high as $29.02, with early use limited to trading over forums and early, limited exchanges.

Epoch 2: First Halving (2012-11-28) to Second Halving (2016-07-09)

In the second epoch, bitcoin started to see further adoption. Although the infamous Mt. Gox exchange was founded in 2010 already, and had seen some controversy in 2011 with several hacks, by 2013 and early 2014, it was handling as much as 70 percent of all bitcoin transactions before the infamous hack that saw it shut down, and bitcoin seeing a large drop in value as thousands of bitcoins were stolen. Then there was the infamous Silk Road and Silk Road 2.0 platforms, which led the media to associate bitcoin with illegal activities. During the second epoch, bitcoin’s value traded for as low as $12.33 to a high of $1,134.93.

Epoch 3: Third Halving (2016-07-09) to Fourth Halving (2020-05-11)

By the third epoch, bitcoin had seen its adoption grow to new highs. The world’s largest investors and institutions were finally taking notice, with many changing their opinions on bitcoin as a decent asset and good store of value. Bitcoin’s run from a low of $526.98 to its famous peak of $19,640.51 in late 2017 was widely reported, as was the subsequent plunge in value. Although it became clear that bitcoin trading was volatile, asset managers and the average Joe alike took notice of bitcoin as an asset.

Epoch 4: Fourth Halving (2020-05-11) to Fifth Halving (Second Half of 2024)

We currently find ourselves in the fourth epoch. Public companies such as MicroStrategy and Tesla have added bitcoin to their balance sheets, new highs are being reached almost monthly and reputable investors suggest it could go as high as $1 million sometime in the near future. If bitcoin follows the same trajectory as the last epoch, I predict that it may very well reach a high of over $400,000 before, once again, seeing an almost sudden plunge in value as investors try to reap as high a profit as possible. If bitcoin does indeed follow this trajectory, I believe we may see a massive new high before the end of 2021.

The Pattern and What the Future Holds

It is evident that each time a halving occurs, in due time, bitcoin sees a dramatic surge to a new all-time high, beyond many expectations. As soon as this peak arrives, many start to sell their investments to reap the profits, with bitcoin then seeing a plunge as dramatic as the surge that came before it. Bitcoin’s value sees regular pumps, followed by regular dumps until it eventually stabilizes with a new bottom. For some months, it trades relatively sideways until a second surge begins. It isn’t, however, as dramatic as the one before, but it does push bitcoin’s value high enough to see it reach at least half its previous all-time high before the next halving.

It is likely many of the large institutions and investors that have bought millions worth of bitcoin over the last few years will sell off their holdings once bitcoin reaches a high enough value. The same can be said about miners, who have started accumulating their newly mined coins instead of selling them. In this case, bitcoin should peak somewhere between $350,000 and $450,000, if we follow the same trend during this epoch as the last. It could take months, maybe even a year, before bitcoin sees this new high, but I believe we’re heading there sometime later this year.

One concern that is quite evident is that more and more publicly traded companies are adding bitcoin to their balance sheet. This is great in terms of adoption and legitimizing bitcoin as an asset. However, these companies have shareholders, and it is very likely that a company like MicroStrategy that holds billions of dollars worth of bitcoin will see an activist shareholder or two jump on board and push it to sell off its holdings should it reach a massive new high, as predicted above.

Let’s continue to look at MicroStrategy as an example. They hold over 90,000 bitcoin, currently worth north of $5 billion, with the company’s market cap being just over $6.75 billion. Should bitcoin reach a high of $400,000, it would value their bitcoin holdings over $36 billion and with BlackRock, Morgan Stanley and Vanguard owning over 30 percent of the company’s shares, they are likely to push them to sell as soon as possible and return value to shareholders. That’s over 90,000 bitcoin that could flood the market, the same could happen at many other public companies and threatens not just bitcoin’s price, but trust in it as a storage of value.

What remains clear, looking at the chart above, is that bitcoin has proved time and time again that it is a trustworthy asset and store of value. It sees surges, and plunges, and it is likely to happen for several years to come. Bitcoin is by no means near its peak and even though it may take a few years, bitcoin is poised for tremendous growth and will continue to see large-scale adoption as it becomes clearer to the global audience.

This is a guest post by Dion Guillaume. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

Source: Bitcoin magazine

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We Are All Satoshi Nakamoto

The legendary moniker has been passed on to the community that made the decentralized payment network known as Bitcoin what it is.

Nearly 12 years have passed since the release of the Bitcoin white paper, and we are no closer to finding out the identity of Satoshi Nakamoto, the mysterious creator of Bitcoin. There have been countless investigations, claims, and theories as to who Satoshi is, but it doesn’t matter anymore.

When Satoshi first introduced the world to Bitcoin in 2009, he adopted a pseudonym, preferring to stay anonymous until he ceased communication in late 2010. In the years since, Bitcoin has gone on to disrupt the global economy, spawn the widespread adoption of blockchain technology, and put control of people’s funds into their own hands while financial institutions and governments scrambled to block its path.

In the Introduction of the Bitcoin white paper, Satoshi noted that the current financial system “suffers from the inherent weaknesses of the trust based model,” and went on to say that “financial institutions cannot avoid mediating disputes.” His new peer-to-peer payment system addressed these issues and in the process disrupted the status quo for financial institutions and governments alike, which likely would have led to him being targeted.

Besides being a target for financial institutions, governments, and the media, someone like Satoshi would have been able to wield great power over the blockchain industry, adding volatility and threatening the integrity of the ecosystem. It is likely that Satoshi foresaw this as a potential issue in the future and opted to stand back, knowing that the community he would build would be able to ensure Bitcoin’s future growth and success.

Decentralization is defined as the distribution or delegation of organized activities away from a single authoritative location or group. The populist nature of Bitcoin is dependent on its being a decentralized payment system, and Satoshi being viewed as an authoritative figure would defeat its entire purpose and threaten the ecosystem.

Whether the individual or group known as Satoshi Nakamoto is still alive and watching from the sidelines remains unclear, but Bitcoin is stronger than ever. It has become an asset worth over $1 trillion in the decade since Satoshi ceased communication. Because of its role in creating a decentralised payment system that is controlled by the people, the Satoshi Nakamoto moniker has been passed on to the community that made it what it is today, and therefore, we are all Satoshi Nakamoto.

Source: Bitcoin magazine

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Stacking Sats: How Small Weekly Investments Can Offer Decent Returns

“Stacking Sats,” or purchasing small amounts of bitcoin over long periods of time, can pay off.

Sats, short for Satoshi, are the smallest subunit of a bitcoin, which is divisible up to eight decimal places. “Stacking Sats” has become a common term in the Bitcoin community for building your holdings by purchasing small amounts of bitcoin at a time.

Investing in bitcoin may seem daunting at times. Not only are there constant price fluctuations, but with a single bitcoin exceeding $55,000, it may seem as if you’ll never be able to build a decent-sized investment. To illustrate the power of “Stacking Sats,” I created the following infographic:

Image via Bitcoin Magazine

The idea is fairly simple, purchase small amounts, when you can, and slowly accumulate a decent position. Had you purchased just $5 worth of bitcoin a year ago, on March 29, 2020, when bitcoin was trading at $6,245, and continued purchasing $5 worth of bitcoin every Monday for the next year, your holdings would be 0.02030253 BTC, worth roughly $1,184, having only investing $260 over the course of a year.

Of course, over the past few months, there has been a bull run in the bitcoin market, with bitcoin reaching new all-time highs as more institutional investors have started to embrace bitcoin, and the rapid increase in value has prompted more people to consider bitcoin as an investment. This has affected the price and returns displayed in the image above.

Investing in bitcoin is a long-term endeavor and short-term price movements should not deter you from pursuing an investment, no matter how small. Many have predicted that a single bitcoin could someday be worth well over $1 million, which in turn would make a single Satoshi worth $0.01 and having stacked as many as possible worth it.

So, you don’t need hundreds or even thousands of dollars to start investing in bitcoin. By simply starting with a few bucks here and there when you have some to spare, you can start investing in bitcoin and build a decent-sized holding over time.

This is a guest post by Dion Guillaume. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Source: Bitcoin magazine