BTC crash or correction?
So, many of you are probably accutely aware of the price changes of bitcoin. You're staring at your wallet, converting to USD, and thinking.. ugh. It's mostly red, and it has been a rough ride for mostly a month. Some of you may have panicked already. Some of you might be panicking now. I can't tell you what to do with your money because I don't know your circumstance, but maybe I can share an insight that I had while at @pillarvc's event last night.
In the room were many young people, some still in college, with faces filled with energy and enthusiasm. In that crowd were a handful of older devs that seem pretty comfortable making the rounds at the various blockchain meetups (which I'll start attending more frequently to evangelize Steem). And ever fewer still were the handful of millionaires or people representing millionaires and billionaires looking to make active investments in existing coins, tokens, projects, people, and companies.
If I figured out anything last night is that at least in Boston this feels like a tough correction, but from what I saw it leaves me more confidant than before that it's just a correction. This isn't a crash. This isn't enron. This isn't Lehman. This is an early lifecycle business going through boom and bust cycles that fuel the growth. So, as your making your sad clown face staring at your wallet I would ask to consider this: The last time btc was at this price was around 11/24/17. You can read here about how price was in between 78-90 cents. I'm looking at steembotracker.com (because I own it and like the USD feed) and seeing that Steem is at-
Block chain isn't dead, it's reloading
Corrections are good. They let new buyers into the market. BTC continues to follow from what I can tell Metcalf's law and we seem to have little trouble increasing the number of people in the ecosystem, and that's increasing the number of people investing, building products, performing services, and building a crypto economy. It's magnificent to watch.
Other investments
This dip is so low that I'm now mobilizing to sell off some of my other investments to make more room for crypto. If I can pull this off I'll have the majority of my wealth in crypto, and even though there's risk it I'm confidant we'll bounce back. So, I don't know what's right for your family because I don't know your circumstance, risk tolerance, balance sheet, or cash flow, but I'm moving out of fear and into greed pretty hard.
Bullshit disclaimers
As usual, I pity the fool that takes this as financial advice or thinks I'm responsible for the decisions they make. Make up your own mind and just take this as a neat aside of what I'm doing for my family.
I powered up to the tune of 259 steem power today and have $5k USD in my wallet waiting to be deployed at the mid 3s and 2s should the price hit these levels. I'm buying the dip!
"I'm moving out of fear and into greed pretty hard"
I laughed out loud. Usually people move from fear into something else... I wasn't ready for that. It is likely a good move though!
i did the same thing at that line. had me crackin up.
I loved that line too! Ha!
Ha, I didn't move anywhere... I'm stuck in Fear!
I think far too often people think as goes Bitcoin, so goes Crypto. I think the HODL mindset seems to blind people to changes in the market conditions. You can make an investment long term because you believe in the fundamentals of that investment. When it works, great. When corrections happen though it's foolish to assume the market conditions that existed at the time of your original analysis are still valid. Wipe away everything you decided previously and look at the situation with a fresh mind.
Crypto is not like stocks where there is a tangible business behind the valuation. Bitcoin is not going to merge with Etherium at some point, or buy out Ripple. I can't help but look at BTC as a proof of concept. Crypto might be here to stay, but any one coin can be supplanted at any point by a newer on that does a better job at that coin's function. I like STEEM, it is unique and has a use case behind it that is interesting, and seems to have a leadership position in its niche. Bitcoin, I'm not sure it hasn't been supplanted by basically every other coin in terms of use case. Why should it remain valuable?
Exactly! I'll stick with Steem thank you!
good analysis!
It is going to be interesting to see where the cash goes when it leaves the stock market. I think that people know they can trust the block chain but the currencies themselves are going to have to demonstrate value. This should thin the herd of currencies a bit but leave the remaining a lot stronger than they were.
Bitcoin tends to recover very fast if you look at the charts the last 2 years and especially this year. So I am not worried if you are a HODLer with long term perspective. If you are looking to swing trade the market however, this could be a golden opportunity.
I think that if we are in for a correction again around this time, something tells me it can be in the 40-50% range due to what I mentioned above.
Fast recoveries in the past two years were on the back of Tether, a meaningless indicator going forward.
We are already beyond the 40-50% you speak of!
Something feels bad about this crash.
Buy low - sell high - buy low - make dough!
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I love the Mr. T reference. Thanks for pointing out that it was the same price in November.
I'm right there with you about selling off other investments to add more into my crypto portfolio. I know multiple people that are running away from crypto right now because of the bloodbath these past 2 months. But I see the bulls right over the horizon. Better to load up while crypto is low.
I'm uber-new to crypto but from everything I'm learning I have to agree that crypto is the future. On another note: Best disclaimer ever!
haha that was my reaction!