Explaining to a Buddy Why I'm Not Selling My BTC Now - and Why He Should Get Some!
I have a good friend that I've known for about 3 decades now and he doesn't know much about crypto. Still, with a friend of that vintage you'll take some time explaining things like Bitcoin, blockchain, and cryptos in general. This is what I told him:
When I bought my first bunch of Bitcoin it was going for about $15,000 USD. Today, the price is about $3980. That's down from a high of over $20,000 per Bitcoin in December 2017. If I had sold it at its height I would have made profit, but I didn't, as I was hoping it was going to keep going up and up - maybe even "to the moon!" as the saying goes.
If I sold now I'd take a heck of a loss. So, I'm not going to do that. I don't have that much anyway, I just made the mistake of "panic buying" when BTC was making its biggest bull run yet. Lesson learned: don't panic buy!
The other side of that wisdom is: don't panic sell! Not selling when crypto markets take a dip is likely much more important that buying when the price is going up. The reason for this is that Bitcoin is probably going to go up again and reach ever bigger heights, as it's a finite cryptocurrency (don't take this as investment advice, it's only my opinion), and there's only ever going to be 21 million of them made.
More good wisdom is: only invest what money you can afford to lose, if you do invest!
Even though the future of Bitcoin may look bleak to one standing on the outside, who has only heard mainstream news reports of its fall from the value it once attained, I still think it is a good longterm investment. One reason is the already mentioned finite characteristic of it, but another is the rise of blockchain technology which is moving into most fields, with many new, unimagined uses. So, it'd be a good idea to also get some interest in blockchain developments, along with other cryptos that heavily power them, like Ethereum.
Blockchain technology was created for Bitcoin, and it is a public, unchangeable record, or ledger, of all transactions on the network, stored in a decentralized way. That was how blockchain started, but many other uses for it have been discovered, like for games (CryptoKitties), "smart contracts" that are stored on the ledger (Ethereum), and for business and government records - to name just some of the applications of blockchain, beyond recording the transactions of cryptocurrencies.
Adaption of blockchain technology should drive up the value of not only Bitcoin, but of many of the other cryptocurrencies that now exist (about 2000 when I checked today), and of new cryptocurrencies to come.
The adage "buy low, sell high" applies in the crypto market, just as it does in all markets. Right now BTC is down, so you know what that means? And what it doesn't mean? Right...?
“To the moon!”
This is not financial or investment advice.