First off, I need to state that I’m referring to bitcoin only, not all cryptos.
Lots of people jumped into bitcoin when it was high, and are now panicked because of the price crash.
So buy, sell, or hodl?
Myself I’m holding. Here’s why – Because unless bitcoin gets hacked it logically should survive and still exist years from now.
But what if it goes to zero? Well, if it survives then how could it go to zero? I don’t think it’s possible.
Private digital money is a new technology that a large segment of the public has proven they want.
Proven. Saying bitcoin has no value is about as smart as being around in 1985 and saying fax technology is worthless. It’s the technology, stupid. Not you, kind reader.
Is there any good reason to think that public desire for financial privacy/freedom will change soon?
The short answer is, “No”.
Now combine that public desire with bitcoin’s likely survival, and we’ve got a floor to work from.
Add bitcoin’s brand name recognition into the mix, and we’ve got a leader in a new arena WHERE PEOPLE'S HARD EARNED DOLLARS ARE AT STAKE. There are only so many risk takers in this world and since most of the public has only ever heard of bitcoin, it stands to reason that as more risk averse people get into private digital money the majority will put their trust in the proven brand name.
The price is going to be crazy up + down for a while, years, but if the technology can’t be defeated then it is here to stay because people want it.
So do not panic. Instead, try to think in terms of time, not price.
Tell yourself that it doesn’t matter what the price is because you won’t allow yourself to sell before a certain date. Tell yourself it doesn’t matter what happens or what anyone else says, it’s insignificant to you because the time to decide what to do with your bitcoin holdings has not arrived yet. Your investment has not had time to mature so why worry about it?
Imo it’s a sound and rational approach to investing in a brand new asset class unlike anything the world has ever seen before. Far less stressful than day trading in the great unknown. To me, trading in + out of bitcoin trying to time the highs and lows, is like walking a tightrope in the dark.
It’s not a stock and will eventually burn those who treat it like a stock. They’ll end up with less bitcoin.
Bitcoin is a difficult concept to grasp, almost like another dimension, but one way to look at it is like owning real estate. Land.
Sounds crazy, eh? Owning a few lines of computer code is like owning land? But it is, in a way.
There’s only so much of it and they’re not making any more. And if bitcoin is going to be around the rest of your life then the permanence of land over bitcoin loses some of its advantage there too.
The stake you claim on the bitcoin blockchain is even leasable, like land. To short traders. I don’t recommend doing that yet though. I’ll wait until the big banks start doing it, I don’t trust the altcoin exchanges. Maybe Gemini, but they don’t do short trades yet.
I’m no financial expert, just another bitcoiner who has tried to peer into its future over the last 2 years, but I say hold your bitcoin and buy on dips. Do not pick the unripened fruit, the time is not right for harvest. In my opinion. Good luck!
