Stories about bitcoin dying have been written many times.
On Tuesday, there was one in The Atlantic titled, “Is This the Beginning of the End of the Bitcoin Bubble?”
This happens whenever bitcoin is down a nasty 20% in a day. The naysayers assume something very bad must be happening.
So even though bitcoin is still up 100% over the last three months and has done the entire boom-bust-boom cycle hundreds of times before, this time looks different. It looks scarier because it’s happening right now.
It’s in our nature to assume the sky is falling when something unexpected happens.
If you manage to hold crypto for long enough, that goes away.
Embrace the Dips
All the early crypto adopters were on buying sprees this week.
So when my mother-in-law texted me her condolences about bitcoin, I smiled and kept looking for bargains.
I don’t get upset when the prices of cryptos drop. That’s like yelling at the weather. Plus, only through these dips do we have the opportunity to buy cheap.
Once you really understand and appreciate what cryptocurrency is about, price shouldn’t matter that much.
It’s a bet on the future of money. That’s all I need it to be. No matter what happens to the price tomorrow, it will still be my wager – a hedge, of sorts.
Maybe if I had a larger crypto portfolio, these dramatic shifts would affect me more. But I don’t think so. I’ve talked with many crypto traders, and most of them feel the same way.
The global enthusiasm for crypto didn’t disappear overnight. It just fizzled for a moment due to a natural but significant sell-off.
You can’t kill off a movement this strong with a little negative price action and some scary headlines citing “possible government bans.”
Don’t get me wrong, governments are still the primary threat to cryptocurrency.
But cryptocurrencies present their own interesting dilemma for governments. If a government bans cryptocurrency, it is admitting that it fears for its own currency. It is telling its citizens that it decides what is best for them and their families.
So, naturally, governments will try to scare us into thinking cryptocurrencies are dangerous. The tools of criminals, hackers and worse.
We’ll have to stand up for our right to choose the currencies of our choice. It won’t be easy, but it’s a goal worth fighting for.
Co-Founder, Early Investing