From Rollercoaster Ride to Bullish on Bitcoin: A Year in Review

2025-01-02

This article chronicles a year-long rollercoaster ride for the author, David Gewirtz, who invested $50 in Bitcoin in 2022. The article is a humorous take on the unpredictable nature of cryptocurrency and the factors that can influence its value.

A Fumbled Start with Bitcoin

Gewirtz’s journey with Bitcoin began in 2022, fueled by the announcement of PayPal becoming a Bitcoin wallet provider. However, his initial enthusiasm was dampened by self-control and a more measured approach. He opted to invest a smaller sum of $50 instead of his entire PayPal balance. This decision proved fortuitous, as the value of his holdings dropped significantly within the first few weeks. Discouraged by the initial plunge, Gewirtz decided to take a break from monitoring his investment.

Bitcoin’s Rise and the Impact of External Events

After a six-month hiatus, Gewirtz revisited his Bitcoin investment to find it down by a staggering 60%. The following year brought little respite, with his holdings remaining underwater at the start of 2023. It wasn’t until 2024 that a significant shift occurred. The Bitcoin halving event, coupled with the election of a pro-cryptocurrency president, led to a surge in Bitcoin’s value. By the end of 2024, Gewirtz’s investment had nearly doubled.

What Undercode Says: Analysts Take on Bitcoins Future

The article by David Gewirtz offers a personal anecdote about his experience with Bitcoin. While it doesn’t constitute financial advice, it does provide some interesting insights into the cryptocurrency market. Here are some key takeaways:

Bitcoin’s Volatility: The article highlights the volatile nature of Bitcoin’s value. Gewirtz’s investment experienced significant drops and climbs within short periods, emphasizing the inherent risk associated with cryptocurrency investments.

Impact of External Events: The article sheds light on how external events, such as the Bitcoin halving and the election of a cryptocurrency-friendly president, can significantly influence Bitcoin’s value.

Uncertain Future of Cryptocurrency: The author remains skeptical about the long-term viability of cryptocurrency, acknowledging its dependence on collective perception of value. However, he acknowledges the possibility of cryptocurrencies like Bitcoin becoming mainstream in the future, similar to how credit cards revolutionized transactions.

Overall, the article serves as a reminder of the inherent risk and uncertainty associated with cryptocurrency investments. While Bitcoin’s value has soared in recent times, its future trajectory remains unpredictable. Investors should carefully consider their risk tolerance and conduct thorough research before venturing into the cryptocurrency market.