Many of us might be scared after seeing Bitcoin (BTC) drop to under $29,000 per coin in the last week or so. However, if you've done your due diligence, you must know that this is a great opportunity to grow your position if you truly understand and believe in the future of Bitcoin, cryptocurrencies and blockchain technology.
To understand and assess the value of Bitcoin, and thus its price, we need to understand what Bitcoin and blockchain technology brings to the table. Bitcoin and blockchain technology are building the foundation of a new and better financial system. I want to keep this article simple to read so I will not enter into deeper details but what we need to understand is that new technologies enter our lives to disrupt and improve current systems (keyword: improve). Bitcoin and blockchain technology can certainly improve our current financial system model which is not taking advantage of our latest technological advances.
UNDERSTANDING THE IMPORTANCE OF BITCOIN AND BLOCKCHAIN TECHNOLOGY
Blockchain technology, in its final form, will have the ability to allow faster transactions while bringing in hundreds of millions of people to the financial world that currently cannot participate due to the lack of necessary infrastructure or the physical presence of a financial body in their geographical location i.e. small towns, remote villages/islands, poor and underdeveloped places.
The current nature of our financial system heavily relies on centralized entities and therefore we rely on their physical presence to be able to participate in the financial world. I am not going to judge our current model because it is a model that has worked for over a century, however we need to move on to a better technology if there is one available. And blockchain technology is it certainly one that allows for many improvements to the current system we use to transact. Blockchain does not require heavy infrastructure costs and its internet-based nature allows it to reach every corner of the world making it truly advantageous and giving a chance to EVERYONE in the world to participate in the financial system if they choose to; and overall blockchain technology will improve and expand the global market.
Understanding those basics should then put us in a position of wondering WHEN will blockchain technology take over and replace the current financial system rather than wondering IF IT WILL EVER replace it. It is a matter of when rather than if, and this should be clear.
WEALTH CREATION OPPORTUNITY
If we start from that premise, now we have the opportunity to acquire Bitcoin at a massive 56% discount, off from its all time high: $69,000 per coin just a few months ago. If we are long-term investors, it is now our chance to increase our position in an asset that should appreciate in value over the mid to long term. Having the confidence in our research, if we have done it, is an intangible asset that we should take advantage of. Volatility is an inherent characteristic of Bitcoin and other assets in the same asset class, but volatility is where wealth can be built and shaky times like these reward courageous and seasoned investors. Most times only investors with deep pockets can take advantage of these price fluctuations because they don't panic. However, understanding the fundamentals of our investments should give us the confidence to make the right decision during volatile times.
These are difficult to digest times for many, but we also need to understand that these are the times that will allow us to thrive and like others have said in the past "be greedy when others are fearful and be fearful when others are greedy". Now is the time to be greedy instead of being fearful. This is the time where individuals that understand fundamentals will grow their wealth. This is a bumpy ride, but for me is it just another opportunity to continue to accumulate more assets, regardless of the intraday price fluctuations. If you are in doubt zoom out and look at the bigger picture and identify the trend.
Having said that, I have no doubt that Bitcoin will be part of the new financial system and to me this is a golden chance to accumulate more Bitcoin and a few other assets that I think have great potential ahead; in my case these are namely Ethereum(ETH), Solana (SOL) an Cardano (ADA). And at the same time continue to generate passive income through interests in my cryptos while I continue to HODL.
Platforms where I hold my crypto investments:
- Celsius - Free $50 in BTC when you open a new account and deposit at least $400 worth of crypto. High interest rates on cryptos and stable coins and NO transaction fees (unlimited).
- Nexo - Free $25 or $100 in BTC when you open an account and deposit $100 or $1,000 worth of crypto. High interest rates on cryptos and NO transaction fees (2 transactions per month).
- Voyager - Free $25 in BTC when you open an account and deposit at least $100 worth of crypto. High interest (9%) on stable coins and interest earning account for US residents.
- Cake DeFi - Free $40 when you open an account and deposit at least $50 worth of crypto. High interest when staking coins. Decentralized finance platform (DeFi).