Well, that was rough. Bitcoin and every other cryptocurrency had a tremendously difficult week. Bitcoin went from over 19 000 to just under 6 000 in just a few days. And the same happened to other cryptocurrencies. Media, as usual, went wild and wrote about `bloodbath’, `massive selloff’ and of course – `bubble bursting’. The experts were talking about Bitcoin falling even further, maybe to 0. There were a lot of `I told you so’ comments coming from the cryptocurrency skeptics.
The problem with the Media and the so-called experts is that they do not see the big picture. They see a sudden slump in the prices and start to panic. They do not understand a thing about Bitcoin. This is the reason why they are almost always wrong. Just a day after their apocalyptic prophecies Bitcoin is rebounding, it is now over 8000. Almost every other cryptocurrency is following Bitcoin’s lead. So, what experts were calling the end of Bitcoin was actually an excellent opportunity to buy them.
The major problem with the old guard of the financial system is that they fear the change. They do not understand Bitcoin and that is why they fear it. This is not a new phenomenon, everything new and big is usually met with misunderstandings, skepticism, and fear. Even giants like Warren Buffet made similar mistakes. Buffet actually advised against buying Google shares, as well as, Amazon shares. He later admitted that this was probably one of his biggest mistakes. The problem was that he did not understand the significance of these companies and the change their products would bring to the market, therefore, he made a wrong judgment.
Apart from failing to understand Bitcoin the experts and the Media also fail to see the big picture. Sure there was a huge downfall in prices these few days, but just a year ago total market capitalization of cryptocurrencies was 18 billion dollars. Now, even after the slump, it’s 381 billion. So, according to the experts, the market which managed to expand by 2 133 % is going to fail because of a few bad trading days.
The point is that the best way to stay informed about the Bitcoin and other cryptocurrencies is to understand it. You have to see a great significance and change cryptocurrencies can bring to the financial world. It is immensely disruptive technology which is bound to change the world. It strives towards the future where financial operations are available to anyone and not just the lucky few who were fortunate enough to be born in a stable country.
Cryptocurrency market is volatile for now because it’s very new. But volatility is not something to be afraid of, it is actually an opportunity to get into the cryptocurrency market. A lot of people made a lot of fortune in the last few days when they saw an opportunity to buy coins while everyone else was panicking.
Long story short, the key is not to give into fear when dealing with cryptocurrencies. Fear only leads to one thing – the dark side.