What's causing the current price drops in crypto? Should we be worried?
I have to admit, I was suprised, too, this morning when I saw that Bitcoin (and everything else) went down even more.
Am I worried, though? No.
But a couple of members of my Conscious Crypto Community were, so I'll just share here, what I shared with them.
What's causing the price drops?
There are many many factors, some of them happen every year around this time (people take out money to pay their taxes, Chinese New Year), plus a correction after an "All Time High" is normal.
In addition we have "finance experts" sharing how they still don't understand blockchain at the World Economic Forum in Davos, regulations in India, USDTether drama, and apparently Apple pulled the Telegram app from their store, which is a favorite of crypto enthusiasts.
Loads of things are going on. And they will keep going on.
I expect the next two years to be the most volatile we've ever seen. The higher the prices rise, the deeper they will fall.
The more this crypto thing spreads, the more it will be fought.
The more people start to believe in it, the more other people will try to talk them out of it.
None of this will stop people from getting more interested in crypto, though.
Especially in times right now, when the prices are so cheap, it is way more affordable for newcomers to buy their first coins. And this will drive the prices up again.
The up- and downside of being earlier than the early adopters
We all have to understand one important thing: the early adopters are not even here yet. We are EARLIER than the early adopters. Early adopters make up 13% of any population or market. It will take at least another year until we reach that number.
The downside of being in so early, is that there is a lot of uncertainty.
The upside is that it provides the highest profits long term.
This is not a product that may or may not make it. This is a technological, societal and consciousness-y revolution.
The blockchain can't be uninvented anymore. Neither can people's desire for freedom be stopped.
There are soooo many products and applications being created at the moment, that will make crypto become way more usable very soon. Many of them will be released in the summer. But remember, they will only truly unfold their potential once the early adopters come in.
By using all of those new apps and technologies, the early adopters will then bring in the mainstream. By then we will be in the early 2020's, so we really need to keep a long term (well, medium term) view on this.
The only people who will lose money, are the ones who came in with a short term view (to make money quickly), or who invested more than they could afford. Because they will get scared and sell when prices drop, "in order not to lose any more".
That's not us, though, is it? ;)
"it is way more affordable for newcomers to buy their first coins. And this will drive the prices up again".
Agree with this point newcomers have lots of chances to get into the cryptocurrency but for the seniors who have invested billions and getting loss day by day.
well, the "seniors who invested billions" will also be multi-multi-billionaires once prices go up again. Hope they'll put their money to good use.
Love that point about early adopters, the price we pay for the long term payoff that others won't see is the STRESS! lol all good- its important to keep things in perspective, glad you're being a voice of reason amongst all the hype and panic <3
this. totally agree with that! :) -- as for the people that came in for a quick win, that's like most things in life right, people who don't do the homework don't pass the test! fact of life.
Yep!
If someone had told us a year ago, "Bitcoin will drop to $8,000", we would have laughed at them, because that's ten times higher than it was back then. So next year around this time, we'll probably have a drop "down to $80,000" :D
I didn't get into crypto for this but the more I have learned about it and the philosophies of the vanguard, the visionaries in the space, the more I realise this is actually something I really think is necessary and a natural evolution for modern society.
Great overview of where we are at today @connectedeconomy
Yes, whatever the reasons are for people to get into it, it starts a whole process of "awakening" once you're in it. I heard someone say this recently and believe that's true. It certainly was true for me.
"The blockchain can't be uninvented anymore. Neither can people's desire for freedom be stopped." This is so true, and i think that so many people often forget this. this is some good stuff man! thanks for the share! i look foreword to seeing the other stuff that you have coming. i was surprised when i got out of work yesterday and looked at my block folio i just started laughing, and simply carried on with my day. Believe in crypto and good things will happen!
Exactly! :)
keep it up with these posts. great stuff!
Bitcoin is more like dancing up and down
Crashes are not new. I guess it is the new investors who are panicking.
I think is real when we saw our coin drop down. But it is point allthing can happen in crypto world.mybe the system in progress to fly hihi
Thank you, I agree.
This is why a great financial strategy for crypto is to just take some of your fiat earnings every month, and buy alt-coins. Accumulate, #hodl, never sell. When the markets get tough it's better to go and spend some time in nature, away from the computer, appreciating yourself and the value of being able to see where the world is headed before the masses catch on.
That billionaires at Davos just don't get it is actually very encouraging to me. Those same stuffy old billionaires were saying the Internet would never catch on 20 years ago. Their ignorance creates more opportunities for this new economy to boom.
There's more to blockchain that just trading on USD prices of cryptocurrency. I did a post and video about that recently: https://steemit.com/crypto/@steveouttrim/cryptobeast-6-a-world-of-infinite-love-and-abundance