At the time of this writing bitcoin is sitting at $265 and getting absolutely crushed. From its previous highs over $1000 per coin, the cryptocurrency has seen a precipitous decline from the good ole days of high prices.
The internet is amok with articles proclaiming bitcoin’s demise and how it’s well on its way to $0. “I told you so” is probably being heard more than a few times around the block, as the dollar roars to new highs and bitcoin plummets to new lows.
We could be witnessing capitulation in the world of bitcoin trading where bitcoins literally go no bid for a short period of time. People throw reason to the wind and sell out because the pundits say so. There is no hope.
Has anything fundamentally changed with bitcoin? Has its payment advantages gone away? Has everything with the blockchain been fully vetted out and developed for the modern world of commerce?
Make no mistake, bitcoin could go lower…much lower. But it’s potential to go much much higher remains. I won’t sit here and try to explain why its going lower, but will only remark that everything seems to be fading with US Dollar strength. The USD is going through a blow off top…after which it will revert back to it’s intrinsic value. Where will people run to when this happens? Gold? Bitcoin?
The time to be greedy is when others are fearful. Know your risks and pick your spots. If you want out, get out now. But if you still think bitcoin has the same value it had when you first dropped fiat into the blockchain, consider buying…or at least not selling at these levels.
Good luck out there in the wild wild west of crypto. Here’s to another wild year in 2015.