Bitcoin is Dead - Long Live Bitcoin
If your only indication of what is going on with bitcoin is what people on Facebook say, let me lend you a hand. Because people don't like to write about downturns. Only all-time highs, etc.
(WIldly inaccurate numbers follow)
Bitcoin is currently $13,418.80, down from somewhere between $17,000-$20,000 a few days ago, depending on where you trade. (That's right, somewhere, people are making $2000 by moving a bitcoin from one exchange to another.)
Let me tell you why that's a good thing.
First of all, it was a much needed correction in price. Pressure relief. Guess what? Anytime you see a bloody straight vertical line, something's going to give. Meh, I held. And lots and lots of people held. And more bought. And some of them held.
Now the people that made whatever ungodly amount they did have reaped profit, or put directly into the plunging alt coin market. Or bought more, as likely as not. We're seeing the effects of that now, with a nice new surge in prices, with the benefit of a cheaper bitcoin differential.
What else? Well, not to be too obvious, but unless you think cryptocurrency won't remain a thing, erm. I know what I'd be doing with $14,000. Or $1000. Or $100. But I'm silly with it.
The new all-time highs (and not just bitcoin. Basically everything, in terms of USD) also brought a lot of attention in the media, right in time for Wall Street to roll out the first bitcoin investment funds, which are surprisingly mild in their handling of the fledgling new currency. Shorting doesn't look to be the problem we suspected (that is, manipulating the market to profit from a short, and indeed have it both ways) it might be.
Afterall, as a lot of us know, you can short bitcoin all day long already. And, when things dip like they just have, a short correctly placed and timed would net the same as if you had sold a bitcoin.
A lot of people got burned on this bull run, to be sure. And the FOMO people that bought at $18,000? Well, they'll just have to sit on it, and hopefully not sell at a loss for no good reason. This is not a short term investment, or a get rich scheme. Cryptocurrency is as much a lifestyle choice as it is a means of trade.
So, aha, a positive bitcoin article anyway. Surprise. And, hey, if you actively think this is some sort of fad, pyramid scheme, then you can in fact profit from its demise. I'll take that bet, thank you.Don't look at cryptocurrency as an investment. That's your first mistake. It's basically something like email or fax machines that you'll have to learn to deal with eventually anyway.
I do ask you to think about this article on February 1st, 2018. I will definitely see you there. But after January first, consider me a paid consultant.
Coinbase
https://www.coinbase.com/join/53476ad1648b69e77f000013
The only reason for time is so that everything doesn't happen at once.
- Albert Einstein