Bitcoin is down to $14K – oh my goodness. What happened? Is Bitcoin a scam?
Sell it guys sell it as fast as you can. Get out, get out now – what did we get ourselves into? How are we going to save our capital?
Just kidding 😀
I just want to reassure that there is no worry here. People who are traditionally coming from the background of trading fiat currency often get stressed more because in the world of fiat currency even a fall of 1% is considered huge!
Guys understand that this is cryptocurrency that we’re talking about and a fall of 20 – 30% in the world of cryptocurrency is absolutely normal. If I were you I’d just relax!
The thing here is a lot of people have recently bought bitcoins. This is evident from the graph of Bitcoin
In the past few weeks huge number of people got into Bitcoin and it started making a headlines in all news channels, social sites like Facebook, Instragram, Twietter and what not. The Bitcoin volumes almost doubled on 29th Nov, 2017.
|Nov 26, 2017||5,475,580,000|
|Nov 27, 2017||5,653,320,000|
|Nov 28, 2017||6,348,820,000|
|Nov 29, 2017||11,568,800,000|
|Nov 30, 2017||8,310,690,000|
|Dec 1, 2017||6,783,120,000|
|Dec 2, 2017||5,138,500,000|
This is now reflecting in the Bitcoin price where a lot of people are pulling out their profits because they have earned plenty in just over a month. There was no major support built when it rocketed to the moon in just under few weeks plus we have a holiday season and new year coming in. If we just look at the prices of 23rd Nov (1 month ago) the prices were $8K and on 17th Dec it touched $20K i.e a rise of 250%. Please tell me any investment idea that you can think of which has made your investment 2.5x in a month because I don’t know any! 😀
Bitcoin is still very high. Currently it has market cap of $236 billion which shows the faith of the people on bitcoin. I just want to reiterate that we have had a super strong bull run in the last few weeks and we’re experiencing a bit of consolidation here which is absolutely fine and healthy for bitcoin. No investment can go upwards in a straight direction and it goes true for Bitcoin as well.
What do I do now?
1. If you are short term investor who just bought the Bitcoins when they were close to $20K please wait until the tide settles. Lot of newbies who get in the Bitcoin get frustrated when they see their capital getting eroded virtually and they start selling at a lower rates, exchange it with other currency like Litecoin and what not. I repeat you must not do that. You will eventually loose all your capital. Just HOLD on to your bitcoins. If anything, you must buy the Bitcoins at this attractive price as per your budget.
If you are stressed out about your investment then I’d suggest you to not open any exchange. Just forget that you have invested in Bitcoin and focus on something else. Few months later you would definitely be treated with a surprise 🙂
2. Long term investors should have no worries. You should already be in profits, I would guess. Just keep a thumb rule – if the Bitcoin price falls or rises you will keep holding it or you may sell only that amount which is necessary to recover your capital and keep holding the rest. You will reap unimaginable amount in few years from now.
Bitcoin is an investment and it’s bound to go up in the prices. If you are in it for the long term you have absolutely nothing to worry about. We have seen many corrections in the past where it fell from $4000 all the way to $2000 this year and we will continue seeing them in the future. The thing is it appreciates at a quicker speed than it falls. I assure Bitcoin will definitely surpass $20K and more.
I am NOT a financial advisor. The investment should be done based on each investor’s financial capabilities, holding time period and expected returns. I hereby declare that I am not forcing / suggesting anyone on specific personal investment decisions.
The views expressed here are solely my own views and I should not be held liable for any financial losses or the profits. Investors are hereby requested to do their own analysis before they take any decision.