Everyone is freaking out. Did they miss the next Broadband? Did they screw up and put all their money in the next AOL? Too be honest, the concept of Bitcoin is unrelated to either of these historic bubbles. And no, don’t worry. It’s not too late to buy Bitcoin and jump in on the bandwagon. In fact, at a current cost of $16,461.71 (12/27/17, 12:50 AM), now would be a pretty good time to throw some change into the Bitcoin bucket.
Bitcoin has “crashed” 30% SIX TIMES in 2017. Each “crash” has been followed by an increase of: 76%, 237%, 183%, 165%, 152%. Bitcoin takes 7 steps forward, 2 steps back, 7 steps forward, 2 steps back. Every 2 steps back is heralded as the end of #bitcoin. Relax! pic.twitter.com/bV5ZFeucTp
— Robert Reid (@robertreidmd) December 22, 2017
So yes, it is extremely volatile, extremely unorthodox, and extremely risky. I’m not suggesting to throw your life savings in here, but although a 19K dip to 12K seems like Great Depression magnitude, this is how Bitcoin has always worked.
To relate it to the stock market, it would be like Twitter dropping from $27 to $14. Huge drop, sure. But what does that mean? Does it mean Twitter is worth $14 a share? No. It means hop on because it’s coming back to it’s actual value, which is about $20-$22. So it’s not too late to buy Bitcoin.
Now let’s apply this same logic to a volatile cryptocurrencies, which are not stocks. They are currencies. Currencies that are easily traded by individuals that are much less than “day-traders”
“For example, last week the price of Bitcoin fell by 26 percent. If you had bought a Bitcoin on December 19, you would have paid $18,936 for each coin. But if you wanted to sell it on December 23, buyers on the market were not willing to pay more than $14,048 – a loss of $4,888 for each coin.” – Al Jazeera
So if this was the DOW or NASDAQ, sure, let’s all freakout. But these are kids using apps like Coinbase and Blockchain. They had to buy CHristmas Presents, NYE tickets, these are not long-term investors. Bitcoin has ALWAYS been like this. We can even go back to Al Jazeera to prove it’s been like this since 2013:
“In 2013, the price of Bitcoins had fallen by 61 percent in a single day. On April 10 the exchange for Bitcoin had fallen from $266 to $140 for each coin.” – Al Jazeera
Proof right there that it is not too late to buy Bitcoin.
As Robert Reid suggests, every spike is followed by a rise. Because these are short term investors. Once New Years is over, expect numbers as high as $25,000. Once all these college kids throw their money back in.
According to the The Street “Sorry pal, but you’re already way too high on the hockey stick, unless of course you’re trying to sneak money out of China or Russia.”
Who said I wan’t the whole hockey stick? I just want a couple G’s!
Wanna jump in on the action? I suggest Coinbase. I’ve had no problems with it so far. But if I do you know I’m coming back to edit this!