OK, Bitcoin prices trended Downward. Has the sky fallen?
Just like stock prices, Bitcoin is finding it’s newest pricing Plateaus. However, with the Price Volatility of bitcoin, understanding these “trading ranges” is like reading tea leaves to forecast the future.
Bitcoin is a global Phenomenon. It’s not just a product to hold and invest in, it has a valuable purpose; if your local fiat currency is suffering from inflation and devaluation (or worse), you need Bitcoin to move money around, or get it out of the country without paying enormous fees. In developing countries, women can conduct business in Bitcoin on a smartphone. Muslim women who cannot enter a bank without a man to “conduct transactions” for them, can have a smartphone with a Bitcoin wallet under their Burka. Their children bring the product to market, and they receive Bitcoin in return. It solves a problem in these countries, and Bitcoin can be more stable than some government-backed currencies!
In the US, the dollar is a strong currency. Bitcoin is not a necessity. Many of my fellow Americans only see it as an investment medium; they would never consider using Bitcoin to build a business, as the dollar is more stable and respected world-wide. The number of businesses that accept Bitcoin for payment is steadily growing. Led by global businesses like Overstock, there are now hundreds (if no thousands) of businesses and even more individuals accepting Bitcoin for payment. Even Craigslist is in on the act, with an “Accept Cryptocurrency for payment” check box.
While we watch Bitcoin, and try to understand where it’s “trading range” is, intelligent followers of Bitcoin realize, sometimes painfully, that it can move to higher or lower ranges in minutes. Predicting the price is like forecasting stock prices or the weather. The one thing I can assure you of, without hesitation, is that the price will change. Most of my friends and associates are not panic selling, they are patiently waiting for the price to rise. They have a lot of confidence in Bitcoin, since it is global and useful beyond mere investing. Many of the “Alt-coins”, created in the image of Bitcoin, do not have wide acceptance, and are like “penny Stocks” and IPO’s, where the company behind the IPO can’t get traction and loses its value. Many Altcoins have been mined, had their run, and become worthless (Not all are worthless, Companies and countries are going to be mining their own Altcoins). With no lasting staying power, merchants, or ability to maintain their growth beyond a brief run, Many Altcoins fade out, while others are listed on the exchanges and actively traded.
Bitcoins global base, large pool of owners, miners, businesses, and exchanges give it more credibility and staying power than other cryptocurrencies. There is also a finite amount of Bitcoin – so having some popular alternatives (Litecoin, Ethereum, etc.) is good – think of it like having choices between state-backed currencies; Dollar, yen, shekel, ruble, Mark, Pound, Peso, and the coin without a country, Bitcoin. (Did I just describe Forex trading basics?)
Whatever you are invested in, keep an open mind – Bitcoin is the “New Kid” on the block, and will have growing pains. The sky has not fallen, but has got a few cracks in it.
(Disclaimer: I own Bitcoin, these thoughts are mine and not advice on what to do with your Bitcoin – just my personal view.)
Thanks for reading my blog, (and feel free to share)
Best of luck in Bitcoin,
Don’t just take my opinion:
How to Start a Crypto Portfolio – Robert Leshner – Medium – Medium
Should your portfolio include bitcoin? Yes, but just a 2% position, says analyst – Marketwatch
Bitcoin: Mastering Bitcoin For Beginners: How You Can Make Insane Money Investing and Trading in Bitcoin (Bitcoin Mining, Bitcoin trading, Cryptocurrency, Blockchain, Wallet & Business)
Best of luck to you, and may your portfolio go TO THE MOON!