5 Lessons We Learned From The Last Bitcoin Crash
1- Bitcoin is Here to Stay. Not A Bubble, Not a "Fraud"
What China has done was a very big hit to Bitcoin and the whole crypto-verse. If Bitcoin was in a bubble, or if it was a "fraud", then this Chinese blow would have been enough to burst it.
However, it did not! Bitcoin survived and it rebounded. This proves that Bitcoin is here to staythat Bitcoin**. So, for me as a long-term investor, what happened has reassured me that Bitcoin is a great investment.
I am sure, many large investors and institutions have noticed this too. They should have realized the power of the decentralized economy that bitcoin is creating. They would want a part of the pie. So, I expect that the price of Bitcoin will soar next year (since such institutions are usually slow :) )
2- China Can Not Ban Bitcoin nor ICOs, Not Even In China! It's Decentralized
Sure, China can ban Chinese platforms from launching ICOs. It can also force Chinese exchanges to stop operating. However, this is not equal to banning Bitcoin or ICO altogether. Firstly, the Chinese market does not represent a huge percentage of the total market anymore. It represents about 15% only.
More importantly, you don't need Chinese platforms and exchanges to invest in Bitcoins and cryptos even if you were in China! The Chinese people will find alternative ways to stay in the market.
They can migrate to foreign exchanges. I am sure such exchanges would be more than happy to welcome them. In addition, they can always use peer-to-peer exchanges like LocalBitcoin. This is the beauty of Bitcoin: you can NOT shut it down.
3- Decentralized Exchanges Are Necessary
Bitcoin is resilient because it is decentralized. That is why China could not do more harm than this. However, most crypto exchanges are centralized. They are under the jurisdiction of governments like China.
So, for Bitcoin and cryptos to be really decentralized, we need decentralized exchanges that no one can shut down or control. We need exchanges like Bitshares' DEX.
4- Bitcoin Controls Cryptoland
It was so clear that Bitcoin was the sole leader of the cryptocurrency market. Bitcoin crashed and the whole market followed. Bitcoin recovered, and the whole market followed.
So, regardless of the BTC Dominance index, Bitcoin is definitely dominating the market.
5- Always Keep Some Cash, Crashes Are Great Chances To Invest
People are not reasonable. When the market crashes, they start panicking and selling, causing it to crash more than it should. The Chinese traders were selling Bitcoin because they were afraid they would lose their money if exchanges are closed. This has created a lot of FUD, and others started to sell too. Bitcoin and many great altcoins were trading at really low prices. They were clear bargains.
Although many people saw the chance, most people were not able to benefit from it. They did not have any more cash to do so. They had invested all their money in cryptos already.
Luckily for me, I had some cash set aside for such occasions. I have even borrowed some money from a friend. I bought as much as I could. I made 20% profit overnight.
Bro this is a really cool and useful post, can I translate for the Spanish community? (with the due credit of course) ^^
Of course you can.
Cool! I will let you the post here when I'm done :)
You just missed one.
6.- Forget about the news the bankers and governments
:)
pocketsend:100@santigs, That is definitely true.
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Well written piece! And thank god indeed it survived XD. Bitcoin changed the world and it keeps helping it to change in a positive way!
Thank you, @josanuavir.
Glad you like it.
I agree! It is the power of decentralization!
Very Nice, You kept it straight !
I have left my love and appriciation as Upvote :)
we will be obliged if you do the same :)
Some Points to make Good Money By learning Bitcoins !
https://steemit.com/bitcoin/@sakpoo/some-points-to-make-good-money-by-learning-bitcoins
that is damn true....
Great post......I agree!
you are an active man......
Thank you, @faisal79
You have well resumed what happened this week in the bitcoin ecosystem ;)
Yes. I like to pause and think. I have learned a lot like this.
Yes I agree with you. I learned all 5 lessons...
This post has received a 1.25 % upvote from @booster thanks to: @sadekj.