So, did you take a position on Bitcoin lately, or you took it much earlier?
Most latecomers were disappointed by the prices of Bitcoin despite the halving today.
The thing people overlooked is Bitcoin is more of an asset now than it was earlier proposed as a currency. And prices of assets can fluctuate just like commodities, sometimes even worse than them. Even a so-called ‘black gold’ like oil can plummet into oblivion.
Bet you never imagine in a million years oil can be this low.
Am I bashing Bitcoin?
Bitcoin is first ‘gold standard’ that demonstrates what can be achieved with decentralization. It allows people to think of possibilities, benefits and wealth protection outside government issued and controlled fiat.
It sets us free from being tied up to a single means of exchange, one that can be manipulated and used to ‘control’ the general population. As the pioneer on decentralization and blockchain, Bitcoin will forever be remembered for this in the monetary hall of fame.
Cryptocurrency is still at very nascent stage. Personally for me, it is like when minted coins was first conceived to replace the barter system then.
When and how it will be widely adopted is left to speculations, there are already countless articles and opinions on this, most pointing to the inevitable – digital currency will replace fiat. In what form or manner, this is not the purpose of this article. However I like to point out while many find it inconceivable that Bitcoin can even be worth $40,000 or $100,000 in the near future, it is the same disbelief for those who bought them at $20-100 feel during the super-hype of Dec 2017.
Ah, the keyword is here – ‘hype’.
Whether you are merely spectating, were an early or late buyers, one truly needs to see through what are facts and what are hypes. Sadly, most people took opinions as facts, especially when they are from prominent people. This is where you should filter the noises (some called it news) with strong logical mind, despite the convincing reasons given why Bitcoin will moon (price surge in the crypto world) before or after the halving. It is easier said than done because I too fell for some of them, and had my share of losses.
Now let’s look at strong logical mind, I will keep it simple: Do you believe the evolution (some called it freedom) that cryptocurrency will bring the financial markets and economies that are currently being controlled by only few denominations or countries?
Do you believe that cryptocurrency will provide you a safe alternative from hyper-inflation or instant bankruptcy like what happened in Zimbabwe and Venezuela?
And do you believe the future is digital, like the proliferation of e-wallets today.
If yes, then just hold and wait for the day to come. Might not be in your lifetime, maybe your children will thank you for it. And what about making money now? Well that is not the purpose of this article.
PS. You can make money on price movements (be it up or down) instead of selling away your precious Bitcoins, try our app on https://Level01.io
– Charles Wong, CMO, Level01