Bitcoin is getting crushed. After hovering above $1000 per BTC late last year the cryptocurrency has made a precipitous decline to the $300s of late, even touching near $275 at a couple points this past weekend. There is blood in the streets so they say, and bitcoin holders everyone are questioning whether to stay the course or cut their losses. What is a digital money aficionado to do in these troubled times?
One thing we all must remember is that our mind is our single biggest resource we have. Human minds built civilization and the greatness of the world we live in today. That being said, our mind is also our primary medium of sabotage. We are particularly susceptible to fearing change and second guessing ourselves when things don’t go to plan. This is probably what many bitcoin holders are feeling today and likely questioning their choice to invest in this “financial sorcery”.
With that in Mind, We must Think
- Have the fundamentals changed?
- Have the credit cards come out with a less expensive way to pay for things on the internet?
- Did Apple Pay alleviate the charges credit cards levy on vendors?
- Did Western Union remove the fees they charge on remittances?
- Lastly, has identity theft gone the way of the dinosaurs?
So now you need to ask yourself, do you have the conviction to stay the trade? A thorough examination of your time horizon will help put your approach into perspective. Those wanting to experience long term appreciation of bitcoin should not take the approach of a day trader. Avoid the daily noise and focus your attention elsewhere – there is no point in watching the charts day in and day out. And remember that the powers that be are going to defend the current system to the last man. This system works well for them, and until they can learn to co-opt bitcoin they will support fiat currency systems to the bitter end. Fiat has done right by them and they will do right by fiat.
But, if you really have faith in the protocol you need to stay the trade. The value of bitcoin is incredible and represents a paradigm shift in the way we handle money. If you truly believe that it is a matter of “when” bitcoin becomes the primary medium of exchange as opposed to “if”, then don’t you worry. Hell, buy more of the digital tokens as a short term trend towards lower prices really means nothing in a lifetime of THE currency of the digital age. When everyone is running out, you should be running in to acquire cheap assets for pennies on the dollar. This is what I think can and will happen if it has not already….the second coming of the bitcoin nouveau riche will make their licks in this down market.
Follow the tenets of sound money and the universe will treat you mercifully. When? Who knows – but the show is just getting started. Giddy up bitcoin holders because the ride is far from over.