Let's try to get some perspective about the current state of the crypto market. The most bearish technical analysts tend to suggest a $1000 Bitcoin is the rock bottom. I personally do not agree with this, simply due to the number of people entering this market and remaining here. A $1000 Bitcoin suggests that every person who entered the market since April 2017 will leave in despair. I find this hard to believe because I for one, entered the market at this very time and I'm going nowhere. In fact, I would suggest many people reading this entered after April 2017 and look upon these prices as more of a "buying the dip" opportunity.
This is not a company or penny stock that has gone parabolic and subsequently crashed due to it not actually being a particularly profitable business. No, Bitcoin has taken people's imagination because it stands for something much bigger than a get rich quick scheme (Although, lets face it we all hope for higher prices).
In my experience, most people who got into Bitcoin and actually took the time understand what it is, have stayed in the market. Those who left bought and sold a long time ago, ignorant to what they invested in, or were market makers who will return when it suits them.
Bitcoin is the internet money of the future.
It will disrupt the foreign exchange market which trades $5.09 Trillion dollars per day:
The $5.09 trillion break-down is as follows:
$1.654 trillion in spot transactions
$700 billion in outright forwards
$2.383 trillion in foreign exchange swaps
$96 billion currency swaps
$254 billion in options and other products
It will disrupt the Gold (Approx $7.5 Trillion) and Personal Savings (God knows this value!).
Why? Bitcoin is borderless and does not need foreign exchange markets, making the best option for International settlements. It is better as a modern investment than gold as it is absolutely finite hard money and much better suited for payments than the valuable metal. Bitcoin is of course much safer than holding your personal savings in an illiquid zombie bank because it is unconfiscatable and censorship resistant. Plus, Bitcoin is designed to increase it value!
Why else is Bitcoin better? Because it is cool! It has the network effect of being first and the proven security to be entertained by large firms. For example, the Twitter and Square CEO has said he intends to include it in both services. With Lightning Network, Bitcoin can truly become THE Internet Money, allowing people to tip each others posts on Twitter (Eventually all social media) and exchange value, Peer to Peer en mass.
The current prices are, in my opinion a great opportunity. What are we at... $4000? And the most bearish analysis is $1000? I have held through bigger losses in the stock market and have come to realise the best solution is to hold throughout. Patience is key to avoid selling at the bottom. When you have that feeling in your gut that you can't take anymore, just remember people with bigger pockets than you are waiting for you to act on that feeling. Don't be that guy!
So much is going on in this space and I do not think everyone who entered from April 2017 will capitulate. Why? Because I for one am going nowhere!
Pistol Pete