Hello everyone, my name is Rushat and I'm 17 and this is my first post on steemit.
I was bought into the cryptocurrency market by a friend who explained me how one day we will all be using this amazing virtual currency call "Bitcoin". I did my research and bought my first Bitcoin at $3000 range. The price exploded immediately and I made huge returns, so I invested more at $6000 and then at $9000 :/
I began studying about the historic bubbles like the Mississippi bubble, South Sea bubble, Tech bubble etc. I didn't see much difference in those and Bitcoin. I looked up into the bitcoin code on github, any real world use, adoption etc for reasons why price was exploding. I came to a conclusion that the new money coming in was not educated but purely speculative and saw this as a get rich quick scheme.
Cryptocurrencies were definitely in a bubble and one day it had to burst.
What caused the bubble to burst?
I can't say for certain but these may be the catalysts
- Many countries regulating and "banning"
- Tether Scandal
- Mainstream media
- Panic Sell
What to do now?
Do not sell (if you only invest what you can afford to lose) but instead,
EDUCATE yourself about how Blockchain, crypto currencies work. As the lightning network makes progress we are going to see this all over again. Here are some helpful links :)
Article about How bitcoin works
Everything about bitcoin on this Coursera course
Should you buy the 'dip' ?
HELL YEAH !!! ; just kidding. Bitcoin is an experimental disruptive technology and currently of very little use. I think that the fate of bitcoin depends on how successful is the Lightning Network (at least for now)
If you believe in bitcoin for the long term then $5500 should be a good buy; I do.
Bitcoin will be in a bear market if it goes below $5500, recovery to ATHs would be difficult but as the speculators leave the market and educated investors come in, the technology improves nothing in this world can stop Bitcoin!
Legal: This is not financial advice but my opinion.
Credits
Dr. Jean paul Hofstra University for bubble chart