An asset bubble is just a rapid rise and abrupt crash in prices. Defenders of the efficient-market theory argue that these price movements are based on changes in investor’s beliefs about an asset’s true value.
But it’s hard to identify a reason why any rational investor would have so abruptly revised her assessment of the long-term earnings power of companies in 1929, or the long-term viability of dot-com startups in 2000, or the long-term value of housing in 2007.
Why the fall of cryptocurrency today? It wasn’t a surprise because I once raised the question about how major Bitcoin news websites were playing the game.
Everything about the cryptocurrency industry was beamed on the price analysis and news causing Fear and motion juggling. This actions prompted me to come out with the top crypto news site that will not make your FOMO which I will evict some of them in 2019 because they have joined the FOMO websites.
Pride goes before a fall – it all starts with a mentality. That of Bitcoin was not different.
The fall of cryptocurrency in 2018 began with the mentality of what I can get only and not what it was meant to be.
Why would I burn (destroy) my Laptop or PC graphics card to make a currency work if there was nothing attached? I mean, why would I forgo playing FIFA 2014 or San Andrea for Bitcoin mining if there was no reward at the end of the day?
A lot of people went into bitcoin mining because there was a reward of getting some Bitcoins at the end of the day and not for it to work out as a currency. So, it was the issue of seeing a sudden gold or hitting the jackpot – not bad though.
Satoshi Nakamoto created Bitcoin as a decentralized currency but some of the Crypto Whales made us believe that it was really decentralized, and so we were brainwashed that the Banks and Government could not influence it – big lies.
You know, 2018 has revealed the behind the scenes of crypto. As Zclarinator (crypto enthusiast) puts it,
“there is definitely a large libertarian bloc in the crypto sphere. It is pretty naive, the idea that crypto will topple the Banks or that ye government can’t touch them”.
While the bank should be toppled, the truth is after the whole journeying, we will land at the Bank for business. Just about today, a top crypto trader/analyst was asking the community for a step to take simply because one of the Banks refused to exchange his $100,000 crypto money.
Before we can think of toppling the Banks here, it is worthy to note that the Banks are just as likely to corner the crypto market because you cannot literally defeat Big Money with additional Money, see, there is politicking, we know, so, it does not work that way.
[bctt tweet=”You cannot defeat Big Money with additional Money” username=””]
THE DECEPTION OF SOME CRYPTO INFLUENCERS
It is 100% decentralized and so, the Government is out!
If you think that the government is out of crypto, think again or consider India and why they are not a crypto country. See the full list of Crypto/Blockchain countries and the reasons.
We were made to believe by the influencers that crypto was still decentralized when deep down there it was a fatal lie.
The big question to ask if, if the Government was out, how come we were resting the crypto market surge on the shoulders of SEC, and later BAKT to the rescue?
Want to see how it all began? This is it in detail.
So, while we were told that the government was out, we were now depending on it for what reason? A comeback.
Now see what a decentralized currency is.
– A Decentralized currency means we take a voting/decision on currency policy away from the centralized few who will make decisions entirely on maximizing their own family legacies/profit.
Note: away from the centralized few – the influencers.
Don’t miss the below:
THE FALL OF CRYPTOCURRENCY & THE BITCOIN PRICE CRASH
And it was a timing bomb waiting for an explosion at $9,000 -1 BTC. The trigger later went to $11,000 and damm it, people were missing out, so, all ye people were afraid of missing out which eventually led to in the influx of naive people over a sudden struck gold.
Naive people – after putting it up with crypto, the next action was to count our mansions and the Lamborghinis we would buy when Bitcoin is suddenly $50,000.
As funny as it was, a lot of 2017 people – investors were waiting for the stocks market to crash wherefore immediately it slightly did, their money was moved into cryptocurrency.
Even more, some smart investors waited for the Chinese New year to be over which eventually worked as a bullish crypto market support.
With the sight of Bitcoin at $11,500, we couldn’t wait any more than to dump our money where we literally knew much about.
What went wrong? FOMO without essence.
The fear of missing out with no essence of coming into a crypto market made us pulled off from a less volatile market (stocks supposed or environment) to a more volatile market simply because we didn’t get the matrices.
The Wall Street Makers?
Good news…The Wall Street investors’ bonuses were coming in and so everyone converged at the best crypto exchange websites.
Those from the US queued at Coinbase/exchange, those from Europe converged at CEX/exchange and those with Credit cards and all sorts of payment options at LocalBitcoins/Bitcoin just to get their share of the market by getting Bitcoin for themselves.
Bad luck… those that failed to use a better crypto wallet like the Colored Trezors’ or new Ledger – all of them in detail fell off the cliff as Coincheck exchange was hacked.
The Market Dip Analysts in December 2017
Those that knew the crypto industry a bit waited for a dipper market by conducting some analytics which worked out and they had their own share at a fair price.
Great and fine, when Bitcoin went from $11,000 to $16,000, they were like, I bought at dip, so, I had better sell out some of my assets now.
See what a crypto holder that understood the market did in 2017:
On the last rally, I bought Litecoin in at $56, sold at the peak to recover my fiat, and made an extra 2/3 for Christmas presents, and still had 2/3 of what I bought left to hodl.
I just doubled my hodlings in LTC, and when it peaks, I’ll sell what I just bought.
Now that is how to play the game.
In December 2018
Nay…this is not looking good. This is not happening to me.
The language has changed because everything had failed.
More like, I bought Bitcoin at $11,000, how can I sell at $4,000? No, it will surge again, so I had better wait.
At 1 BTC to $3,300, they are like “I bought the dip. And the dips dip. And the now the dips dips dip”. I cannot wait again, I will sell out. So, the losses is like $11,500 – $3,500 = $8,000.
If you have not sold out, you can play prang with Greed to Wait or see your financial adviser on what to do.
The Beginning of Bitcoin Crash
One of the things that I never knew in cryptocurrency until I started trading was Greed as a factor.
In cryptocurrency trading, there are three ultimately factors that control it. #1. Greed. #. Patience and #3. Exit point.
I have lost enough to advice you, so, you can use the above in crypto trading and you will win or use a better tool for it to be on the safe side – an automation tool for 1% profits.
As reported by CoinTelegraph, “the number of crypto people in 2018 has increased significantly”.
The question to ask is, why the increase, I mean, from what angle did the crypto member community grow?
From the recorded growth, you can be sure that 40% of the people that came in do not actually know the essence of Bitcoin talk-less of the top 30 crypto assets which we saw here. And for some that knew a bit, their main focus was based on the “what is in for me” mantra?
The truth is the influx of naive persons in 2017 Q3 and the aftermath crash has made cryptocurrency more like a Big Scam or Ponzi which in fact was proven here.
Where everything when south was that everyone coming in never viewed Bitcoin as a currency.
In the great Bitcoin bubble of late 2017, the honor goes to John McAfee, founder of computer security company McAfee LLC, and passionate cryptocurrency evangelist. On Dec 7, 2017, he wrote:
So, it was all about the asset appreciation – a mere speculative investment and those that had a bit of foreknowing saw it a bit like a store of value.
As quoted by Springford (a crypto enthusiast) on Reddit,
the truth is that crypto was made to be a currency but the price can’t stabilize because people keep using it as a speculative currency. You cannot control it both ways.
Quoting Bloomberg: Instead, it seems overwhelmingly likely that Bitcoin’s spectacular rise and fall was due not to rational optimism followed by sensible pessimism, but to some kind of aggregate market irrationality — a combination of herd behavior, cynical speculation and the entry into the market of a large number of new, poorly informed investors.
The big questions here are:
#1. Do you think that a currency with a deflationary rate of around 2% is feasible for survival?
#2. How can regular, average investors avoid this fate?
Part 2. See Below…
Where your successes starts
Data Contribution : Reddit.com, CoinTelegraph.com, Pixabay.com, bloomberg.com & WebTalk.com