Bitcoin, along with most other cryptocurrencies, has plummeted lately. It recently descended into the $3,000s after being over $18,000 just a year ago. Other cryptos have been even worse. Bitcoin Cash was over $3,000 a year ago, and now it’s at about $180. Ethereum was over $700 and is now around $120.
Needless to say, lots of cryptocurrency dudes have lost a massive amount of money. As usual with these kinds of things, tons of people were completely irrational about all of this, buying high and now selling low, which is the opposite of what you’re supposed to do. Everyone bought in last December or January when bitcoin was going crazy, and now they’re freaking out and selling.
As I talked about last year, I already made my money in crypto in 2017. A lot. All of my remaining cryptocurrency investments are a percentage of the profit I already made last year. So this crash doesn’t bother me at all; even if all my cryptos go to zero, I’ve already made my money.
More importantly, because I’m not panicking, I’m not selling. Though I’m not a bitcoin maniac like many of my fellow libertarians, I’m quite confident that bitcoin will indeed grow in the future, likely to well past the $18,000 it hit last year. I have absolutely no idea when this might happen, nor does anyone else, but I’m reasonably confident it will. And I could be wrong too, which is fine.
Bitcoin still has wide and growing adoption, but the main reason I’m optimistic at the moment is because it was my assumption that some other crypto would come along, smash bitcoin, and replace it as the number one, the same way Facebook smashed MySpace. But this hasn’t happened yet, despite this crash. Therefore, I’m still optimistic on Bitcoin (and its related cryptos like Ethereum and Bitcoin Cash, which tend to follow bitcoin’s ups and downs).
Is it a good idea to buy Bitcoin right now at its new low? Only as a pure risky speculation, but as a pure risky speculation, the answer is yes.
It will be interesting to see what happens with bitcoin in the next 2-3 years.