Is the Sky Falling?
The meteoric from from $1,000 to $20,000 in roughly one year had even the bravest investor fearing a bubble. Okay, so Bitcoin (BTC) dropped from just over $20,000 a coin to just under $10,000 recently. Does that mean the “bubble” everyone has been fearing has burst? Or could it be something else?
First, something you likely don’t know. BTC has dropped drastically in mid-January for each of the past three years. So this appears to be business as usual in that respect – a buying opportunity if you will. But it is more than just that. World governments around the globe started trying to figure out how to deal with the huge influx of cash into BTC and other cryptocurrencies. From outright bans on their usage to regulations on how to track and/or limits on the volumes, countries are trying everything they can think of to get their heads around this.
This uneasiness certainly added to the sell-off.
The “crash” happened only a few days ago and BTC has already rebounded nicely. In my opinion, the best of all possible timing would have been to buy right as the dip occurred and celebrate the rebound. Do not take this as investment advice, just one person’s opinion.
If you missed out on the big growth in 2017, I suspect that 2018 will see much more growth albeit at a steadier pace.
by Chris Doelle