Source: http://www.history.com/topics/1929-stock-market-crash
Bitcoin price crashed by almost 70% and experts are saying it will go down to zero. Of course they are! It’s very easy to become an expert when you’re statements are in line with the current market trend. If you want to be a true genius, then be correct more than a three times. E.g. predict the 2000, 2008, Chinese sellout in 2015 and now tell me what’s about to happen and be damn right about it.
I can never forget the days prior to 2008 market crash. Listening to a room full of experts saying the market is going to continue climbing and then have a few say the opposite. Regardless, someone in a room full of experts will be correct about predicting a market event and everyone will declare this person to be the guru….until of course the next event happens where the same person is likely to be wrong, but no one will notice.
So, let’s disconnect ourselves from all the drama and evaluate the current market crash in light of some history and look beyond just a few days or months. First of all, Bitcoin has experienced similar crashes in the past…..at least 3 or 4 times. Back then, it was not as tangible as it is now ….. Or in other words, Bitcoin could not be used to buy anything tangible, like expensive cars, houses or had ATMs…..seriously, there are ATMs for Bitcoin! There are now Bitcoin Futures, Stocks and someone please tell me if the ETFs are out yet or not. All this makes Bitcoin a tad bit more tangible and therefore a market price drop of 70% should create panic. But then the price was in the late $3000s back in September, therefore if you don’t suffer from short term panic attacks, the price has in essence doubled in the last 5 months. That’s Awesome!
Looking into the future, let’s settle on one thing: Bitcoin should be treated as an asset and it appears that’s the general norm. There are plenty of coin based currencies out there and Bitcoin isn’t one of them. The increased acceptance of Bitcoin by users and more and more companies as a mode of payment are all good indicators. Exchanges are using Bitcoin as a base form for trading other cryptocurrencies. Bitcoin is being used as a benchmark for the performance of cryptocurrencies in general….Even though Bitcoin going up results in other cryptos going down, but more and more people are looking at Bitcoin as in indicator of where cryptos are in general. Not to mention, Hedge Funds and high worth individuals are now investing into Bitcoin. And please, I am not referring to the following:
Source: https://i.redd.it/pl51eynx2i901.jp
In conclusion, Bitcoin cannot be treated as a short term investment. Changing regulation, alternate cryptos, failing ICOs, hacking, unreliable exchanges and many, many other factors will negatively affect the price of Bitcoin……but in the short term. The long term prospect still look great!
I have to end my spiel with one disclaimer. I am not a guru and these are my two scents on what I think about the current price of Bitcoin. Is it possible that major Governments around the world come together and take every effort to eliminate Bitcoin…..YES it is! Can Ethereum offer 10 coins in exchange for every Bitcoin, in hopes to eliminate Bitcoin?
We have to be vigilant about what’s going on the market place. We cannot invest in Bitcoin and fly off to another planet where 1 day there is equal to 7 years on Earth. At the same time, we cannot jump to conclusions based on a short term price movement. So, my dear readers……HODL! But if it all goes to hell, at least you tried. Good luck!