Bitcoin hit a record $20,000/coin a 14 months ago. I can remember scoffing at $10,000 Bitcoin and being skeptical about why people were logging onto Coinbase and buying at that price. I attended a Christmas party in West Seattle and heard nothing but optimism about Bitcoin and saw that social media, hope and an insane bullish run up were influsing Bitcoin fans with fire to buy. What happened shortly after was a bearish 2018 with a few spikes in March and April. On the anniversary of Bitcoin’s all time high, we can reflect on what happened and what we must do in 2019 going forward.
The historic bull run and bubble of 2018 from July to December gave investors a 10x return in short order. Bitcoin’s mysterious nature and value proposition based on speculation about a blockchain-future gave many investors a thesis for buying a year ago at $20,000. John Mcafee’s declaration that Bitcoin would hit $1 million or he would do the unthinkable fueled the fire. During this time, the altcoin market was frothy, and fan-favorites like Ripple’s XRP and Litecoinsoared. The ICO market blew up and investors essentially either saw immense returns or were scammed out of their money.
What can we learn from all this? The first thing is that we must take profits and not be greedy when the market swings violently upward. Holding cryptocurrency for too long during raging bull markets may solidify losses. The key is to sell when the cryptocurrencies are rising into a stable coin like USDT and put the money back in when the price settles. Due to low volumes in the cryptocurrency market, volatility is extremely high and investors can get burned for holding overnight.
What does 2019 hold for the cryptocurrency market? I would be lying if I said I can predict the future, and the market looks like a polar and binary outcome will occur. I am a believer that cryptocurrency-based social media is a future bright-spot in the segment. Users of social media currently produce content daily for free, and if they find they can profit, we will see a resurgence. Sites like Steemit and Wekuare great ways to spread the usage of cryptocurrency to current users of Facebook and Youtube. I see a bright future for the new digital asset class. Nasdaq futures will launch in 2019 and this will help the market rise. Expect to see a Bitcoin ETF in 2019 as well.
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Published in my Trybe account I own: https://trybe.one/bitcoin-keeping-the-faith-in-2019-and-reflections-on-the-anniversary-of-20000-bitcoin/