Attack on Cyrpto Crashes Coin Markets
What do the central bankers bankers think of this crypto crash?
As I wrote about in a previous article - the recent credit card ban by Bank of America and J.P. Morgan amounts to nothing more than an attack on a decentralized currency that they see a major threat to their monopoly. It looks like the attacks didn't end there - this week UK high-street bank Lloyds banned all cryptocurrency payments on its credit cards, as well as other well known names in the banking giant's credit card family including Bank of Scotland, Halifax and MBNA.
Market Timing
Right now is a critical moment in crytocurrency investing - this is time to stand strong and hold your ground . The banks are doing everything they can to get HODLRs to give up their precious bitcoin at bargain basement prices so they can snatch it all up while no one is looking. Crytocurrency is still predicted to be on high demand in 2018 and moves like this can be used to shake out the nervous and allow the true believers to dig in.
Run for Cover
Many will flee as they see their wallets shrinking, taking cover in the familiar safe arms of fiat money. Because the value of fiat deflates slowly - people don't really see and tend to think of it as "safe" store of value. Meanwhile, weve al watched the price of food, gas, and energy go up by more than 3xs it previous prices and people don't realize that this means your dollar is wiorth 3x less than it was before and it keeps shrinking. This is called inflation and typically the rate is inflation is about 3% a year. This means that your fiat U.S. dollars are safely losing 3% every year, so your dollar does not buy as much it used too and in the future it will buy even less.
So I ask you - how safe is it to liquidate you crypto wallets seeking out the shelter of fiat when it's roof is full of holes? What is going to happen is that a year and a half from now , many people will be looking backwards and wishing they had either held on to what they had or used this opportunity to accumulate more crypto the way the banks are secretly doing right now.
Dollar Cost Averaging
Remember that time bitcoin was going to the moon? And everyone else had already gotten in and now it was too late for you? Guess what? The train has pulled back into the station. For all of you who though you missed out on the opportunity to invest in bitcoin - this is your chance to take advantage of a small lull in the price. Scared that it will going down? The dollar cost average your money into it. In other words split your money into about 2 -4 parts and invest slowly -
Example: You have $200 that you would like to deploy
and BTC is at ...say ...$8,500 - buy $50 worth of it and wait a few days-
if it goes down - buy another $50 worth and wait another couple of days.
Same thing if it goes up - buy another $50 worth.
The point is that instead of putting all your money in at once and then watching it drop - put in a little at a time so that you don't lose all of your investment all at once. If you truly believe that it will grow and be even more valuable in the future , then it makes no sense not to pick it up while it is "on sale". Another strategy might be to use this as an opportunity to pick up coins that move with BTC but cost much less , such as Bitcoin Cash or Litecoin - thus you can purchase a lot more of them , but still take advantage of their upward momentum when BTC starts to go back up again.
Obviously this is not investment advice - but if you already invest in crypto then these just some things to think about as you contemplate the current volatility of the market.
What are you doing during this market turn-around?
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I always upvote comments to my blog posts
I believe BIG BANKS are prohibiting clients from using Credit Cards to buy crypto as notorious way of keeping money in the banks which will make more money for them. I agree with your point as the market is crashing small investors will sell out and big whales will buy big amount which will increase Bitcoin price, and whales will gain from it.
I am also a huge proponent of dollar cost averaging. In fact I wrote about how it saved me here https://steemit.com/cryptocurrency/@reazuliqbal/dollar-cost-averaging-as-a-savior