If You Are Wondering About Bitcoin’s Future, You Must Read This
If you are reading this it is because, at some extent, there is something about Bitcoin that makes you worried. Clearly, the cryptocurrency community would love to be an incredible graphic in which Bitcoin goes all the time up, but things are not like that and will never be.
Bitcoin is now in a downtrend market that started since its all time high in December 2017. According to coinmarketcap, Bitcoin reached $6,200 dollars, its lowest price in the last 5 months. The market tried to recover from it, but the downtrend trend keeps.
At the same time, there are some media outlets spreading FUD every single week. And this is not good for the environment. The interest in Bitcoin arrived to its lowest point in months, according to Google Trends. And that’s very correlated with the price of the famous cryptocurrency.
But let’s see how the cryptocurrency reacted in the past to these ‘negative’ moments in the market.
History Repeats… Again
This Reddit post is helpful in the sense that it allows us to zoom out a bit the graphics and the history of bitcoin. In the past Bitcoin lost over 90% of its value several times, and the price could only go up afterwards. For example, between June and November 2011, Bitcoin reached an all time high of $32 dollars per coin, and due to the MtGox scandal, the currency reached $2 dollars.
That means that bitcoin lost 94% of its value in just some months. And it is interesting to see what people were saying at that moment.
In Reddit, a user said that Bitcoin at $5 dollars was a great moment to buy (after being traded at $30). But this was the answer he received:
“Predictions are great and all, but do you know what else you can use to determine where a price may be in the future? Trends! Trends even have the advantage of being based on actual data rather than magic and wishes.”
At the same time, other users were saying that Bitcoin could never see $10 dollars again.
And this story repeated over and over. Between 2013 and 2015, Bitcoin lost 87% of its price, moving from $1166 to $170. The swings and the volatility is inherent to the market, and not exclusively to Bitcoin.
Crashes are a great opportunity for those individuals that are patient. Those who want a market that has just one direction, are the ones that will always be wrong. Markets fluctuate and this is what we can appreciate in the short history of Bitcoin. Those who bought the dip, were able to increase their earnings later.
What About the Future?
Bitcoin needs more time to be mature, it needs years in order to reduce its volatility. So we can expect big price movements in the middle term. Bitcoin has lost over 65% since its all time high, reaching a 70% correction in February.
Long term investors should not be discouraged by all the information arriving from different news sources. Most of them are trying to harm bitcoin and cryptocurrencies.
We don’t know what can happen tomorrow, but history has given a lesson. Once bitcoin retraces, then it recovers the upward trend. As it happened several times before. It is not clear which will be the lowest price, neither the highest, but if you are a long term investor, don’t let the FUD change the facts about how Bitcoin behaved over time.
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