The past couple of days have been interesting for cryptocurrency enthusiasts. In fact, the past couple of days reminded me of 2017.
It reminded me how many people invest their life savings into something they either don’t fully understand, or in a way that doesn’t include risk management.
Bitcoin saw a decrease from its recent top of $58,640, all the way down to $45,500 and is currently trading at $49,200.
If you’re new to the markets, then I totally understand this can be frustrating, difficult to comprehend or even scary.
I bought my first Bitcoin at the age of 19 in 2017, at a price of $2,000. I remember selling my Bitcoin a couple of days later at $1,500 after seeing it ‘crash’ by 25%, only to then find myself buy back a smaller amount of BTC at a price of $2,500 per Bitcoin.
That said, I wrote a post that includes all sorts of beginners mistakes I’d recommend you to check out if you’re finding yourself in a similar situation: What are some of the most common beginner mistakes of cryptocurrency trading?
Do I think Bitcoin is going to ‘crash’ again?
This totally depends on what you consider to be a ‘crash’. As, everything that happened the past couple of days to me is a small correcting in a bull market.
To me, money talks. And, following the big money flows, it’s clear large institutional investors and companies are interested in buying Bitcoin.
Take for example Michael Saylor: ‘’CRYPTOCURRENCY MicroStrategy CEO says bitcoin will one day have $100 trillion market value even as price dives’’, or Elon Musk: Is it true that Tesla purchased $1.5 billion worth of Bitcoin?
I strongly believe Bitcoin is going to see $30,000 or $40,000 again. However, this is short-term speculation and I believe there’s plenty of money waiting on the sidelines to pick up some Bitcoin at these prices, to only then see it increase to a price of $100,000-200,000 each.
There’s plenty of traditional finance people that cannot comprehend the value or utility Bitcoin provides. It’s simply a digital number and doesn’t provide any real value, right?
To me, that’s an ignorant thought and a huge mistake. In a world where the government can print an unlimited amount of money to ‘support’ the world economy, digital currencies with a limited supply to me are the biggest and most promising hedge one can have against a system that is bound to fail long-term. And, for people of my generation I believe this offers an opportunity we haven’t seen since the start of the internet.
Honestly, I could write about the market conditions for hours. However, I’d like to to keep this short and straight to the point.
If you, just like me, believe Bitcoin offers a strong hedge and opportunity for both retail and institutional investors. Then, ignore the short-term price action and focus on the long-term opportunity.
Having read various books by Benjamin Graham, we are in the position to beat ‘Mr. Market’.
‘’Mr. Market is an allegory created by investor Benjamin Graham to describe what he believed were the irrational or contradictory traits of the stock market and the risks of following groupthink Mr. Market was first introduced in his 1949 book, The Intelligent Investor.’’
Read: https://en.wikipedia.org/wiki/Mr._Market and I’m sure this offers you a new perspective on the market prices and see dips as opportunities rather than something bad.
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This post is for informative purposes only, I’m not a financial advisor and I currently do have a position in BTC and Altcoins. I have not been paid for this post, this post is out of personal interest.