So, I'm sure everyone has heard of what is being called a "bubble burst". Over the last few days Bitcoin and other cryptocurrencies have fallen over 30 - 45% in value after a record high. Many people who are fearing that they may lose their money are bailing out of what seems to be a sinking ship. But is it, really?
Many cryptocurrency investment experts are holding onto their investments and not selling out. In fact, many people are buying in as we speak.
This chart below shows the historical price of Bitcoin, the current leading cryptocurrency with regard to value:
This shows that the historical trend has been to rise very nicely, and then suddenly drop around 50%. What I believe we're seeing here is the beginning of the third drop. And it's going to fall quite a bit more, at least 10 - 15%, but have no fear.
In my opinion, there isn't a better time to buy than the present (or in the following day or two when it dips even more). After this dip, it will go up even more as it has done in the past.
If you're invested in a cryptocurrency right now
Don't sell! After this dip it will only get better. In fact, wait for the dip to reach it's lowest and then buy more. It will rise dramatically in the coming days.
If you're not invested in a cryptocurrency right now
Buy the dip! As the investment logic goes, sell high and buy low. The time to buy is right in this dip. Like I said before, it's going to dramatically rise in the coming days after it gets out of the dip.
Cryptocurrency is not normal stocks, for those of you have traditionally invested in that. It's volatile, of course, but it is very rewarding for those who stick with it.
As Warren Buffett once said: "Be fearful when others are greedy and greedy when others are fearful."