Bitcoin Is Crashing! What does the future HODL?
Whether you should be worried about Bitcoin crashing depends largely on how much financial risk you are in by the quantity of bitcoin you have invested in.
I have said it before and I will keep saying it: Never Invest What You Are Not Willing To Lose.
Ok so we see Bitcoin is back down to the price where it was at the day after Musk bought into Bitcoin. Is this a cause for concern? It could be, or it could not be. The truth is that investing is always a risk, and investing in financial markets is a gamble no matter how many charts and graphs you look at.
Moreover, many things could be at play here. One is the USD value. The BTC-USD value is dependent of course not just on Bitcoin but also on USD. USD is crashing, although it isn't reflecting on the financial charts, and this is because of hyperinflation that has not yet caught up with the markets - or is being hidden by them in order to prevent people from panicking.
However, it is evident clealy that USD is losing a significant amount of value, because we see the prices on goods increasing significantly. For example, the price of cars is at a record high. The claim is that it's because there is low inventory and high demand - but why would there be low inventory? I highly doubt there's low inventory, but I don't doubt there's high demand.
People are using their "stimulus" checks - which is not free money but rather an advance on taxes (I had to pay it back in full this year) to buy luxury goods, but soon we will see the price of cars crash to some extent as demand reduces when people can't make their payments and inventory becomes extremely high. I believe people are making unwise financial decisions because they think they're getting thousands in free money that is not actually free at all on any front.
For one, the stimulus checks are taken out of taxes at the end of the year. Your tax refund is reduced by that amount, as can clearly be seen when you add that you received the stimulus in TurboTax and suddenly see the amount owned increase by that exact amount.
Secondly, the checks are actually funded by inflation, and federal tax money goes to the private bank known as the "Federal Reserve" (sneaky name), a private non-governmental corporation.
But the "stimulus" checks were "printed" money - that is, not physically printed, but created out of thin air by creating money on a computer screen and increasing the balance in the bank account of all the Americans who received it. This money was not owned and then transferred, it is backed by nothing. This "money" was typed into existence out of thin air. How, you ask? It was stolen by every American by devaluing the currency. By increasing the money supply, it devalues the currency. Every dollar in your pocket is worth less.
Don't worry though, the stimulus was not the bulk of created money. No, trillions of dollars were magically created into existence by typing numbers - but these were not given to Americans, but to random foreign countries and corporations that had nothing to do with the crisis. The bill for stimulus was just the excuse to siphon trillions out of the American economy.
The nation's currency was reduced by half using this strategy, and we are already feeling the effects as the price of goods is skyrocketing. It can only get worse from here.
Over the next decade, the prices of goods will continue to rise overall as the devalued currency catches up with the rest of society and then eventually the markets, unless they manipulate it to hide it using false reporting and other strategies they started using in 2020.
What does all this mean for Bitcoin? It means that the price of Bitcoin will probably go up in the long run as USD goes down. Even if Bitcoin itself holds stable, its price versus USD will go up. This means that BTC-USD will go up as USD goes down.
Moreover, with institutional investors on board, and even governmental entities considering adding Bitcoin to their investments as a hedge against the coming inevitable inflation, Bitcoin is probably going to go up in the long run - and a lot.
But, it might not go up. Legislation may come that bans cryptocurrency, and even though there isn't anything to indicate it may happen, it is a possibility. If that does happen, then Bitcoin is likely to crash - even to near zero. That probably won't happen, but it could. You simply never know, especially in a world as volatile as our current one.
The truth is that you do not know what will happen. You cannot look at trend lines to estimate when it will go up or down. Can it help a little? Perhaps, but it could also be the snake that bites - you think you know it and then make an investment that is bad and lose all your money.
If you do not invest more than you can afford to lose, then you can afford to play the investment game. But if you cannot afford to lose it - pull it NOW. You should never have money in the financial markets that you cannot afford to lose.
I pulled nearly 10k a couple months ago because I knew I had invested too much, and was lucky I didn't lose anything. My life is just too volatile to afford to put that much money in the financial markets. I need the liquid capital, and there are always other investments.
I still have about 2.5k in bitcoin and I will not be pulling it. Even if it goes to 30k I will not pull it. I live as if the money does not exist, and I will keep it in there until it either disappears if BTC goes to 0 or until it goes to 500k and I'm rich.
It's a long-term investment and the money as far as I am concerned is gone. I don't think anyone should put money in the market that they cannot accept they will never see again. That said, I am hoping that bitcoin does reach universal acceptance, and if I can afford it I hope that bitcoin crashes soon very low and I will buy in another
1K to 2k or whatever I can honestly afford, and let that money sit there as long as it needs to make me rich, if ever. Then maybe it will go up the next time, if there is another next time.
Considering how much money I have, I won't be buying in again at
48K or even 45k. If we experience a huge drop I might buy for another 1K or 2k at BTC-USD 20k or 30k.
In summary, should you be worried? If you are sweating, then pull the money you can't afford to lose NOW (if it's not a huge loss - if it's a huge loss, make the decision for yourself). Could it go back up? Sure, but it could go down too. If you can't afford to lose it then it shouldn't be in there. If you're in a loss now, you're experiencing the brunt of your mistake investing it in the first place.
I pulled when it dropped to 48k or so, for no profit; but I don't feel bad that it went back up to 62k recently because it also could have dropped to 30k and then I'd be out thousands of dollars that I actually needed. And the truth is that if it went up to 62k when I had 10k in there, what's the likelihood I'd have the guts to pull it when it was going up? Very low, and then 62k just dropped back to 48k quick, and I'd be in the same position. So, I don't regret pulling it.
Did I lose 2k by pulling versus letting it stay until it hit 60k? Yes, but I DIDN'T lose 5k if it would have dropped by half, so actually in the big scheme of things I'm UP 3k not down 2k.
Moreover, I don't have half my liquid savings tied up in the market, because then I would have 10k I couldn't use until (and IF) the markets went back up.
Lastly, I am healthier and less stressed than I was when I was checking it daily with fear and sweating because I had too much money at risk. I haven't felt any stress at all with 2.5k in there, and haven't had to think about it at all. Checking it was simply fun, not stressful. I see it go to 62k and it's joyful, and see it drop back to 48k - and get this - it's also joyful, because I feel like I didn't make a bad decision.
In fact the worst case scenario for pulling 10k in bitcoin for me would be checking it and seeing it at 100k, and being sad I missed out. But that hasn't even happened, and I would not be devastated because they money I did earn from actual hard work is still in my bank account.
Compare that to keeping 10k (half of my liquid savings) in Bitcoin and then watching Bitcoin drop to 30k, 20k, 10k. It would be devastating and - get this - I would have no choice but to keep it in there, so I would actually be out the full 10k: a 100% loss and therefore cut my savings in HALF, because I couldn't pull out any of it or else risk losing it all permanently if the market even went back up.
Instead, what I can do is invest in my own life, maximize my time, keep my nest egg, work hard and grow my savings, keep a small percent in the financial markets (around 10% in my case), hope that it multiplies many times one day, and in the meantime work hard, save money, gain skills, and progress in my life - with no stress of losing half my savings.
Do you see why it's more beneficial not to invest more than you can afford? The stress alone can kill many people. A few thousand dollars is not worth your health - or your life! Life is more than money, when you have some savings.
Will bitcoin go back up? No one really knows. Just don't invest more than you can afford (10% of your cash savings is a good rule of thumb), and you can enjoy watching the markets go up and down.
There's a difference between having a high risk tolerance, and being foolish with stupid investments. Investing 50% or even 100% of your cash savings is a stupid investment, period. It's not worth the consequences if it doesn't go as planned.
Hope it helps, and happy investing! No really, happy investing. :)
I have said it before and I will keep saying it: Never Invest What You Are Not Willing To Lose.
Ok so we see Bitcoin is back down to the price where it was at the day after Musk bought into Bitcoin. Is this a cause for concern? It could be, or it could not be. The truth is that investing is always a risk, and investing in financial markets is a gamble no matter how many charts and graphs you look at.
Moreover, many things could be at play here. One is the USD value. The BTC-USD value is dependent of course not just on Bitcoin but also on USD. USD is crashing, although it isn't reflecting on the financial charts, and this is because of hyperinflation that has not yet caught up with the markets - or is being hidden by them in order to prevent people from panicking.
However, it is evident clealy that USD is losing a significant amount of value, because we see the prices on goods increasing significantly. For example, the price of cars is at a record high. The claim is that it's because there is low inventory and high demand - but why would there be low inventory? I highly doubt there's low inventory, but I don't doubt there's high demand.
People are using their "stimulus" checks - which is not free money but rather an advance on taxes (I had to pay it back in full this year) to buy luxury goods, but soon we will see the price of cars crash to some extent as demand reduces when people can't make their payments and inventory becomes extremely high. I believe people are making unwise financial decisions because they think they're getting thousands in free money that is not actually free at all on any front.
For one, the stimulus checks are taken out of taxes at the end of the year. Your tax refund is reduced by that amount, as can clearly be seen when you add that you received the stimulus in TurboTax and suddenly see the amount owned increase by that exact amount.
Secondly, the checks are actually funded by inflation, and federal tax money goes to the private bank known as the "Federal Reserve" (sneaky name), a private non-governmental corporation.
But the "stimulus" checks were "printed" money - that is, not physically printed, but created out of thin air by creating money on a computer screen and increasing the balance in the bank account of all the Americans who received it. This money was not owned and then transferred, it is backed by nothing. This "money" was typed into existence out of thin air. How, you ask? It was stolen by every American by devaluing the currency. By increasing the money supply, it devalues the currency. Every dollar in your pocket is worth less.
Don't worry though, the stimulus was not the bulk of created money. No, trillions of dollars were magically created into existence by typing numbers - but these were not given to Americans, but to random foreign countries and corporations that had nothing to do with the crisis. The bill for stimulus was just the excuse to siphon trillions out of the American economy.
The nation's currency was reduced by half using this strategy, and we are already feeling the effects as the price of goods is skyrocketing. It can only get worse from here.
Over the next decade, the prices of goods will continue to rise overall as the devalued currency catches up with the rest of society and then eventually the markets, unless they manipulate it to hide it using false reporting and other strategies they started using in 2020.
What does all this mean for Bitcoin? It means that the price of Bitcoin will probably go up in the long run as USD goes down. Even if Bitcoin itself holds stable, its price versus USD will go up. This means that BTC-USD will go up as USD goes down.
Moreover, with institutional investors on board, and even governmental entities considering adding Bitcoin to their investments as a hedge against the coming inevitable inflation, Bitcoin is probably going to go up in the long run - and a lot.
But, it might not go up. Legislation may come that bans cryptocurrency, and even though there isn't anything to indicate it may happen, it is a possibility. If that does happen, then Bitcoin is likely to crash - even to near zero. That probably won't happen, but it could. You simply never know, especially in a world as volatile as our current one.
The truth is that you do not know what will happen. You cannot look at trend lines to estimate when it will go up or down. Can it help a little? Perhaps, but it could also be the snake that bites - you think you know it and then make an investment that is bad and lose all your money.
If you do not invest more than you can afford to lose, then you can afford to play the investment game. But if you cannot afford to lose it - pull it NOW. You should never have money in the financial markets that you cannot afford to lose.
I pulled nearly 10k a couple months ago because I knew I had invested too much, and was lucky I didn't lose anything. My life is just too volatile to afford to put that much money in the financial markets. I need the liquid capital, and there are always other investments.
I still have about 2.5k in bitcoin and I will not be pulling it. Even if it goes to 30k I will not pull it. I live as if the money does not exist, and I will keep it in there until it either disappears if BTC goes to 0 or until it goes to 500k and I'm rich.
It's a long-term investment and the money as far as I am concerned is gone. I don't think anyone should put money in the market that they cannot accept they will never see again. That said, I am hoping that bitcoin does reach universal acceptance, and if I can afford it I hope that bitcoin crashes soon very low and I will buy in another
1K to 2k or whatever I can honestly afford, and let that money sit there as long as it needs to make me rich, if ever. Then maybe it will go up the next time, if there is another next time.Considering how much money I have, I won't be buying in again at
48K or even 45k. If we experience a huge drop I might buy for another 1K or 2k at BTC-USD 20k or 30k.In summary, should you be worried? If you are sweating, then pull the money you can't afford to lose NOW (if it's not a huge loss - if it's a huge loss, make the decision for yourself). Could it go back up? Sure, but it could go down too. If you can't afford to lose it then it shouldn't be in there. If you're in a loss now, you're experiencing the brunt of your mistake investing it in the first place.
I pulled when it dropped to 48k or so, for no profit; but I don't feel bad that it went back up to 62k recently because it also could have dropped to 30k and then I'd be out thousands of dollars that I actually needed. And the truth is that if it went up to 62k when I had 10k in there, what's the likelihood I'd have the guts to pull it when it was going up? Very low, and then 62k just dropped back to 48k quick, and I'd be in the same position. So, I don't regret pulling it.
Did I lose 2k by pulling versus letting it stay until it hit 60k? Yes, but I DIDN'T lose 5k if it would have dropped by half, so actually in the big scheme of things I'm UP 3k not down 2k.
Moreover, I don't have half my liquid savings tied up in the market, because then I would have 10k I couldn't use until (and IF) the markets went back up.
Lastly, I am healthier and less stressed than I was when I was checking it daily with fear and sweating because I had too much money at risk. I haven't felt any stress at all with 2.5k in there, and haven't had to think about it at all. Checking it was simply fun, not stressful. I see it go to 62k and it's joyful, and see it drop back to 48k - and get this - it's also joyful, because I feel like I didn't make a bad decision.
In fact the worst case scenario for pulling 10k in bitcoin for me would be checking it and seeing it at 100k, and being sad I missed out. But that hasn't even happened, and I would not be devastated because they money I did earn from actual hard work is still in my bank account.
Compare that to keeping 10k (half of my liquid savings) in Bitcoin and then watching Bitcoin drop to 30k, 20k, 10k. It would be devastating and - get this - I would have no choice but to keep it in there, so I would actually be out the full 10k: a 100% loss and therefore cut my savings in HALF, because I couldn't pull out any of it or else risk losing it all permanently if the market even went back up.
Instead, what I can do is invest in my own life, maximize my time, keep my nest egg, work hard and grow my savings, keep a small percent in the financial markets (around 10% in my case), hope that it multiplies many times one day, and in the meantime work hard, save money, gain skills, and progress in my life - with no stress of losing half my savings.
Do you see why it's more beneficial not to invest more than you can afford? The stress alone can kill many people. A few thousand dollars is not worth your health - or your life! Life is more than money, when you have some savings.
Will bitcoin go back up? No one really knows. Just don't invest more than you can afford (10% of your cash savings is a good rule of thumb), and you can enjoy watching the markets go up and down.
There's a difference between having a high risk tolerance, and being foolish with stupid investments. Investing 50% or even 100% of your cash savings is a stupid investment, period. It's not worth the consequences if it doesn't go as planned.
Hope it helps, and happy investing! No really, happy investing. :)
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