Before I begin let it be known that my perspective may be biased because I've already chosen a side between the two and you may not agree with my point of view. I ask that you share with me your own view on this matter as I believe there are pros and cons on both sides. Oh, and this post isn't financial advice.
Okay, here we go...
Late last year we saw it reach all-time highs of $20k before slowly dropping down to where we are now @ $6k a bitcoin. This quick sharp rise and fall in price led some to scream foul and point the finger at market manipulation. It's understandable why some people would suspect that especially if you'd bought bitcoin at peak levels.
Since that whole fiasco though the price of bitcoin has been fairly stable which suggests to me that this was just another correction in the market. Hype tends to blow value out of proportion and I'm not saying bitcoin isn't worth much much more, I'm saying currently the market isn't prepared to handle that much pressure. We saw the effects this hype created in the speed of transactions and high fees of $30, all because of a congested network.
Bitcoin isn't ready for mass adoption and $30 fees would only make things worse. There needs to be a steady increase in adoption along with improvements on the network. So all that price jump and high volume was a test run for when the actual mass adoption occurs.
I think it is safe to say the rumors going on about bitcoin going further down to $2k are imaginary at best. I say this because there's great support at the $6k level as the price keeps bouncing back from there and the reason it hasn't gone past $7k yet is because of traders. Everyone else that's left are hodlers who understand the value of what they possess and are looking to buy more whenever they can.
Fill up your bags and get ready to set your prices when the masses get here looking for the next cool crypto. You best believe that they'll be paying whatever it takes to get their hands on the money of the future. Others will be looking for the next bitcoin, litecoin and ethereum so they can also buy a Lamborghini like those guys they saw on t.v.
On the way there, traders and hodlers will continue to do what they do best.
Traders are manipulating the price (unintentionally, I think) by using the same charts, lines and trading methods and hodlers are keeping things a bit more stable for the long term. As a hodler I don't have a problem with this as it buys me more time to acquire more crypto. This is where I notice the difference between traders and hodlers. Traders are chasing after short-term gains whilst, Hodlers are chasing after long term gains.
If you've seen my bio then you'll know that I'm a poker player and poker has a lot of similarities to trading. Poker like trading is about calculations and understanding the human psychology - what makes someone fold(sell) and what makes them call (buy). People will call certain amounts (prices) and fold others and as a poker player have to decide what amount to set to achieve your goal either way. But again there's also the instances where it doesn't matter how much you bet is because the other player has a hand that can't lose and in trading these people are known as hodlers.
Much like in poker, trading also has its winners & losers because of the high skill required to decipher information and to correctly make sense of it so you can make a profitable decision. If the ration of losers to winners in trading is the same as in poker then that ration is at least 9:1 and if that's true, which likely is, then you're losing money trading. You bought bitcoin @ $20k when you should've sold and are selling it @ $6k when you should be buying.
I think trading is much harder than poker or maybe I just haven't taken the time to study and understand it. There's also the cost to study trading as most traders give lessons and yet have mediocre results themselves, especially the so-called experts on YouTube. There's too many scammers and chance takers out here who are looking to separate you from your money.
Thus, I strongly suggested that most you should just do what I do and hodl your way to the promised land. Selling crypto for fiat right now is shortsighted IMO and you'll be buying back in anyway at more expensive prices. Traders are mostly just selling amongst each other but some of their crypto end up in hodlers' hands and there will soon come a point when there's nothing left to sell.
When that time comes you can bet your last dollar that they'll sell at very high premiums when resources are scarce and they're the ones with all the resources. The $6k you gain today may be the $1 Million you lose tomorrow and the next time prices rally up there ain't no looking back.
One thing's for sure whether you're a trader or hodler, this space isn't for the weak and takes great patience and determination to see your positions through. What are your goals for crypto, are they short term or long term ones? Which one you choose is up to you just make sure to choose wisely and now is the time to do so.
Do you have any thoughts or opinions you'd like to share? Please share them in the comments section below and if you'd like me to notify you when a new post is up, type "notify" in the comments and I'll let you know as soon as it is posted.
I always strive to create value for my subscribers and the community whether it's Finance, Life, Business, or just valuable knowledge. Please subscribe to receive such content and upvote if this was of value to you.
Join us on social media
Twitter: @EarnOnlineWith_
Telegram: @EarnOnlineWith_
Youtube: Coming soon!
