Well, what the hell am I supposed to do now? I used to ask myself that, especially after the crypto crash of 2018. Any of you around for that?
Chances are if you predicted this one, you traded or sold off many of your coins, but what if you didn't?
Think of it like the stock market, you don't actually lose any money until you sell your asset. If you have any patience, relax and HODL. If you are into crypto, you must have patience. The market is way too sensitive and volatile to react like mature markets.
Look at what caused this issue:
- It started 2-3 weeks ago when China said it would be cracking down on miners (again)
- Then our buddy Elon Musk decided to test the DOGE market on SNL and then followed up with his ultimate goal of manipulating the BTC market by announcing that Tesla will be halting purchases using BTC
- I bet he cashed in big from that one
- Did you know that Tesla made more money from BTC than car sales in 1Q21?
- Now China is actually cracking down on miners by cutting power to operations
- Many of them are simply moving the rigs into their homes
- Some of the larger ones are relocating to more accommodating countries
- All of China's actions are due to their losing control of the currency market(s)
- AND....wait for it.....they want total control of digital currency via the Digital Yuan
- This is all a power play so they keep getting their boon
Now the World is down ~9% in BTC hashrate? Seriously, who cares? The Chinese will continue to gain, spend, and mine cryptocurrency. That is a fact. Crypto is not going anywhere.
It is as simple as this, China just did the world a favor by reducing the competition for mining cryptocurrency, period.
....and we should be thanking them for it. The market will eventually bounce back, it is cyclical like that. BE PATIENT!
FYI, the difficulty for mining ETH has dropped to the point where I am earning 150% of what I was a week ago. Thank you CHINA!