July 5, 2020


Cryptocurrency and Technology

Extra! Extra! Bitcoin Crashes!

Let me guess, you are expecting an article about how Bitcoin fell below 10k and has crashed… OOOO. Yeah, how bout no. What we are actually experiencing is a healthy pullback from a spike that hit 14k. The bigger the spike the bigger the pull back. This is expected. Movements both up and down come in waves and those that can ride them make big money so don’t FUD.

Wait? What the fuck is FUD? Fear, Uncertainty, and Doubt is FUD and that is exactly what most major outlets are doing when they claim that a coin or asset is up well over 200% has crashed. Sorry folks, Bitcoin has NOT crashed.

So, knowing what FUD is, is it the reason Bitcoin fell from 14 to under 10? Well, yes and no. Some of it is FUD but most of it is people taking profits. Funny thing right? Wanting to make money off Bitcoin. So when large % gains happen on a coin large pullback happens as well. The goal is to have higher peaks and higher valleys not to spike up and keep spiking up for no reason, that would be a bubble.

Ok that brings me to another point. Is Bitcoin a bubble? Again, yes and no. In a sense everything is a bubble. A bubble refers to an asset that inflates rapidly then pops out of existence but Bitcoin is really more like a balloon that has a guy with sever asthma trying to inflate it. Ya get some good air in the balloon at moments but large amounts leak out between breaths. This is actually common among new and exciting tech. The .com boom saw similar trends while many thought it was a bubble that would burst when it was more of a balloon that lost a shit ton of air and had to be re-inflated.

So don’t let shitty headlines like the click bait I used to make you FUD or think that you’re investments are bad. Do your own research and decide if you think that something is worth investing in and then HODL. Anyone who got rich overnight from anything was lucky. Most great gains take years and it is a marathon so don’t worry too much about the day to day if you know like most of us do that the tech is revolutionary and life-changing.

PS: In the short time it took me to write this BTC is back over 10k… Welcome to crypto.