10 Things to Know About Bitcoin
- Facts about Bitcoin
- What is it?
- How does it work?
- Where did it come from?
- Why does BTC have value?
The small, inexperienced investor loses. These seasoned, experienced investors buy back in at the bottom for the win and continue to make profits for their lifetime repeating the same pattern. The same applies to cryptocurrency and the large volume of new investors in the industry. Many who invested late in the 2017 bull run, purchased bitcoin above USD $15,000 and are now panicking with their lack of profits. Many are HODLing nervously as their value of Bitcoin, or another cryptocurrency has taken a nose dive in the short end of the pool.
If you are one of these investors, who are nervous, considering selling their Bitcoin, you need to stop and consider where this industry is going. Did you think that purchasing some cryptocurrency a few months ago was going to be a get rich quick scheme? Did you think that the only thing you were going to make was profit? A popular statement with investments is that you have to lose money before you can make money. It’s a difficult statement to swallow. Who would agree to lose money so that they could make money in the future? The answer is; smart investors. The most intelligent people on the planet understand that it costs money to learn, and you have to learn before you can make wise decisions.
What sort of decisions are needed in the crypto industry to make a profit and change the way we think about finance? Well, first of all, we all need to have some patience. Do not become “A crypto tourist” who jumps in and out of the game concluding that you can’t make it in this industry. Do some research about forecasts, institutions heavily invested in blockchain & cryptocurrencies such as banks, as well as endless amounts of sectors just getting started in this financial revolution.
Consider these statistics:
1. Approximately less than 5% of the world owns cryptocurrencies. Are you an early adopter? Or will you try to catch the train after it has left the station?
2. Almost every industry in the world has been or is considering using blockchain technology.
3. Current Hash-rates (processing power) of Bitcoin mining are at an all-time high, which does not correlate with Bitcoin prices. Hashrate growth has been consistent with no drop-off in the last 12 months.
4. Most governments support the development of regulations and industries behind cryptocurrencies. The countries who do not support cryptocurrencies are worried about how it will affect their economies, or they simply want control of the industry which may not be possible.
5. The SEC (United States Securities Exchange Commission) has declared that Bitcoin and Ethereum are not classified as securities. This means that companies working with these products are free to market to the public, unlike other securities which must operate under restricted regulations.
Some of these details are bold, bullish signals that we are in for some unprecedented growth with Bitcoin and cryptocurrencies in the near future. Speculation with many who work in the industry consider that from this point, the value of crypto will be back to a profitable stage for all, and some expect massive growth this year. Mass media is not as bullish on perspective, and many online news sources already want to release shocking statements such as “Bitcoin is Dead”. The professionals I work with love to hear this. It means that professional investors are ready to pounce on the opportunity to reinvest at that point.
Baron Rothschild, as 18th Century British Nobleman once said: “The time to buy is when there’s blood in the streets, even when it is your own.” He made a fortune buying in a panic that followed the Battle of Waterloo against Napoleon Bonaparte.
The most popular question I get from investors now is “Should I sell my Bitcoin / Crypto now?!” It’s a ridiculous question that often comes from those with much to learn. The answer is no. Plain and simple. With any realistic opportunity, you must exercise patience and carefully consider your decisions. Some are panicking and selling their Bitcoin right now. They can’t handle the pressure of this bearish downturn, and in a few months, they will regret their choice to sell.
The key element to making good decisions is through education, research and sound reasoning. You need to continue to learn about investments, cryptocurrencies, blockchain technology and surround yourself with information sources. Imagine yourself as a castle, and you are only as strong with your decisions as the wall of information you set up around yourself. For example, I know one investor recently who after doing his research, he transferred 100% of his cryptocurrencies into USDT (Tether) and Canadian currency. While currently, Bitcoin is pulling down values across the board, he is potentially making a profit on whatever percentage this dip in value ends up at. He can buy back in at the bottom and assume there is another increase in value as we see in many patterns, then the dip becomes a positive market change for his portfolio.
So take a deep breath. Consider that the glass is half full, and on top of that, it is refillable. Don’t take my word for it. Don’t listen to those “No-coiners” who haven’t even spent an hour researching this exciting new industry full of opportunity. Continue learning, and your decisions won’t seem risky. You will be able to break away from traditional banking, traditional investing and traditional fear of making new choices.
Take a look at another article we have called “How to HODL”. For more information, questions or comments, please contact us and continue to grow your sources of information around yourself.
Ross Macdonald – Blockchain Business Magazine 2018