Fearful and Greedy Dive Into the Crypto Bloodbath
Earlier today, for the first time in three months, the price of Bitcoin dropped under USD 6,000, according to CoinMarketCap.
So, you’ve invested in Bitcoin or an altcoin when the prices went soaring and the future seemed brighter than the Sun. Now the prices are plummeting and you are close to tearing your hair out. Do not panic! At least, that seems to be the takeaway from most online reactions, straight from crypto experts.
This is not the first time
Twitter user @Blockchainlife tweets facts about Bitcoin price crashes previous to this one, pointing out that this is not as big, percentage-wise, as some others, and it always bounced back.
James Turk, co-author of The Money Bubble, agrees, calling log charts “a thing of beauty”: “It puts into perspective the #Bitcoin so-called ‘crash’. We’ve been here before. If people find BTC useful, they will continue to exchange fiat for BTC, and BTC will again head higher.”
@AngeloBTC joins in:
Market corrections happen and are, ultimately, beneficial
Charles Hoskinson, CEO of IOHK, a technology company, tweets his optimism: “Changing the world takes endurance, pain and hard work. Market corrections shake off weak hands and harden the resolve of the truly dedicated to continue the drudgery. Crypto isn't dead. It's just getting started.”
So, buy the dip!
Most experts agree on one thing: this is the perfect time to buy. Dr. Julian Hosp, co-founder of TenX, a crypto payment card company, tweets: “Starting to see some real #crypto #pessimism - [that’s] a good sign! If you are not invested into crypto yet, it might start to be a good time to be buying. Def. more room to go down (my target is BTC 5K), but it is starting to get interesting now! #optimistic2018”
After all, Warren Buffett, third wealthiest person in the world and possibly the most successful investor, did say to be “fearful when others are greedy and greedy only when others are fearful” in his 2004 annual shareholder letter.
Is crypto the new internet?
Many compare crypto to other technologies that saw many of the same issues in their beginnings, mainly the internet. Jason Calacanis, Internet entrepreneur and investor in more than 150 companies, points out that crypto and the internet have many things in common, market-wise - both having collapsed after a very promising start. Whether or not crypto follows in its footsteps remains to be seen, although many still believe in it.
Many in the crypto community believe that the market is almost certainly going to bounce back after weeding out the weaker links. The question is what’s the balance between fearful and greedy. Which side are you on?