Bitcoin’s plummeting and a whole lot of cryptocurrencies are going down with it. Since early January, we’ve seen half the market value disappear.
Is it time to get out?
How much did you buy in for?
Are you willing to cut your wins/losses and jump out now? Personally, I’ve seen a huge dip in my cryptocurrency gains and I have only invested tiny, tiny amounts. In the past year – and probably more accurately, the last three months – Bitcoin’s value has skyrocketed against fiat currencies. This astronomical increase in value resulted in a perfect storm of conditions to push Bitcoin, and cryptocurrencies, into the mainstream. The idea that you could ‘get rich quick’ meant the technology and ideals behind Bitcoin were quickly forgotten.Everybody took notice without even understanding what cryptocurrency really is. People started to buy coins because it was trendy. You overheard them on the train, talking about their Bitcoin and Lambos.
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In the last month, cryptocurrency markets have crashed.
Due to falling trade volumes in Asia and the threat of a crackdown on cryptocurrency exchanges, people are cutting their losses. One of the issues that the cryptocurrency space is currently dealing with is an influx of fake reports and media that can dramatically alter the price of cryptocurrencies in a matter of hours. Often, this information quickly disseminates through cryptocurrency communities on Twitter and Facebook, which leads to buyer’s selling off and the price dropping – even if the news has been computer-generated by a bot in China. The market is just that volatile.
5When stories started to creep into nightly news programs about people who ‘d sold everything they owned and transferred it to Bitcoin or the fact that, if you ‘d bought a few dollars worth of Bitcoin back in 2010, you ‘d now be a multimillionaire, everybody took notice.
The initial idea behind Bitcoin, the ‘first cryptocurrency’, was to provide an alternative to cash that was decentralized, taking power away from the banks and financial institutions. It was born not long after the Global Financial Crisis hit hard in 2008.
Truthfully, we’re seeing all sorts of speculation, refreshing market cap websites, thinking we can see what’s coming or what cryptocurrency will be the next to see meteoric rises, but in reality we’re all just fumbling in the dark, trying to grab onto a wall and find a lightswitch. No one has found the lightswitch. We can’t see what’s going to happen. Palmer also mentions the old stock market adage: “When your taxi driver is telling you to buy stock, you know it’s time to sell.”