Crypto Bloodbath: Is it Time to Buy?

First and foremost I am an investor, not a trader. Therefore if you are reading this looking for specific levels to buy BTC or other cryptocurrencies you've clicked on the wrong article.

As an investor, I am looking for assets to purchase and hold for long periods of time. While specific price matters - especially when asset prices are getting hammered - time can be a much more important factor than a specific price.

For many years I have invested in all kinds of assets - stocks, bonds, real estate, startups, etc. The key that I am looking for is value. Will the asset be worth more in the future? For the better part of ten years I ignored Bitcoin and its crypto brethren. I believed the many talking heads that said it was a fad or something worse. However, last year - prior the the great bull run (bubble) my mind changed. I saw the usefulness a digital currency or contract could bring society and I began investing. In other words I saw value.

That brings me to today. Yes I am sitting on some pretty heavy losses as I continued to invest through the great bull run and bought at some pretty high prices. However, now is not the time to sell. As crypto asset prices have been slaughtered their intrinsic value has actually increased as technology improves. The biggest problem is that they are very hard to assign a specific value to as one can do with a traditional business.

The bigger question and the one you're probably waiting for me to answer is "is it time to buy?". If you haven't started investing that answer is easy. When considering investing it's always time to start investing. Buy in small increments. For the rest of us who already have crypto investments my opinion is that it's very close to time. Typically the time to buy - any asset that is crashing in price assuming it has value - is when it makes you sick at your stomach to press the buy button. With Bitcoin under $5000 it's making a lot of people sick. The market is panic selling and when the market panic sells smart investors buy. Famed investor Warren Buffett says it best "Buy when there's blood in the streets." It certainly seems like we are pretty close to that.

Notice I didn't say what to buy. I'll save that for another post. There is value in Bitcoin and some other crypto assets. If you've never bought a cryptocurrency Bitcoin is probably the best place to start.

If your gut is telling you to sell it's probably the right time to buy.