My favorite chart of bitcoin...
"Bitcoin is crashing, it's over, it's never going to go up again, everyone needs to sell!"
(Source: https://twitter.com/maxkeiser/status/908169891466936320)
How many times have we heard this?
To be honest, too many to count.
This is a little embarrassing to admit but...
I will admit I was one of those people who thought just that back in 2012.
At the time, I couldn't believe that people were actually paying money for bitcoin, I thought it was something basically useless and something that would be gone within a few years.
However, those were also the same thoughts I had about it back in 2010 when I first heard about it.
Why I still thought that 2 years later when it was still around and making new highs is beyond me. I basically already had the proof I needed that bitcoin wasn't going anywhere.
When bitcoin crashed in 2012, I said to some of my trader buddies:
"Ah ha! See I knew this was useless, worthless, and good for nothing."
However, after that crash, the resulting price action looked more like that chart above than something that was ready to disappear...
I was forced to eat my words and watch bitcoin go on to make new high after new high until I finally put some skin the game around the $1800 level.
The rest is history.
Now that we have seen similar price action yet again, what should we expect in the future?
There is something to be said about "the past not guaranteeing future results", yes yes I get all of that.
However, what about the saying; "this time is different"?
That is one of the most dangerous and costly phrases ever uttered in finance.
Looking back over the history of bitcoin, every single time bitcoin has had a large crash it has gone on to eventually make new highs.
Every single time.
To expect otherwise, would be akin to saying "yea but this time is different".
It very well might be different this time, but when we have history that expands about 8 years and a trend on our side, I will stick with the trend every single time over "this time is different".
So that means, if you ask me what do I expect to happen from here?
I will say..
"I would expect the same thing to happen every other time bitcoin corrected. It went on to eventually make new highs."
For that reason, I was a buyer of bitcoin yesterday at $10k and I will be a buyer again if it drops back down to or below that level.
Stay informed my friends.
Image Source:
https://twitter.com/maxkeiser/status/908169891466936320
Follow me: @jrcornel
Hahaha every time is the same...it's like: This is the one! The end is now and then...we all now the story xD
I like to keep it simple. No stress.
Best image i've ever seen in regards to HODL.
and why would it ever be the end anyways..
HODL all the way
The issue is this: bitcoin has managed to make these consecutive ATHs because the exchanges were allowed to operate without much interference, but the regulatory landscape is changing rapidly now, and there's no way to tell how the banks/politicians will begin to act if bitcoin starts sucking up cash away from stocks and bonds.
You see, at some point a clash between the legacy monetary system and cryptos has to happen. I don't believe this is avoidable! In fact, the fight has already begun.
Just look at how many banks are sending nasty letters and closing the accounts of any clients engaged in buying/trading bitcoin.
Agreed and that is really the big trump card in all of this. However, since we can't know what will happen there, all we can go on his past performance and trends, even if there is no guarantee it will work out like that again. Great comment. :)
Yeah, those bastards aren't going to disappear without fighting...
What? Banks are closing the accounts of any clients engaged in buying or trading Bitcoin ? !!!
Here's a fresh one: https://www.reddit.com/r/Bitcoin/comments/7qrma2/my_bank_account_was_closed_without_my_consent/
2017 showed us the potential power of crypto as an alternative form of value. 2018 will show us the lasting power of crypto. If crypto markets can work out how to deal with regulation and convince businesses to adopt the platform, then it will have a good future. If regulators win out and manage to kill cryptos impetus, a lot of people who bought into crypto in the last month or so will have to hard reality to face.
Well said.
Love to see the Lemmings jumping off the cliff. Have always been a contrarian investor. Lemmings always give me a chance for super-normal returns. Jump you Lemmings; jump!
Exactly.
My phone has rang several times on this last pullback.
I keep reminding those that ask me of the chart of bitcoin's journey already shown to them in most cases more than once and it looks......well......it is this chart.
I was also a buyer, but mostly ETH. Trend is bullish. People get scared and they sell. If you made capital gains that is never a mistake, but if you are selling and losing, than this game is probably not for you. Holding and buying on dip is best strategy so far.
ETH has performed very well lately. 💰 I wish I had bought it at $480.
We just need to be patient cause bitcoin has come a long way from the bottom, this is just a small window for some of us to invest, but have all seen its up and down in the past
Can ₿ drop to 7k though? 😶 Do you think?
I have noticed that the media are doing the bitter commercial. The big governments are struggling to destroy the bitcoin at any price. Probably the panic of some is fed by the fake news!
The general public has absoluty no idea what they are doing.
Look at Bitconnect, yesterday looked like that ponzi was collapsing. But apparently. people are still buying that garbage.
Speaking of your second sentence, have a look into who runs Tether and you'll find some interesting information.