“It’s Bitcoin Mania. Again.”
No, this is not click-bait, nor is it intended to be sensationalist. It’s Bitcoin Mania. Again. This time though, it may be different from the first Bitcoin boom that many of us remember experiencing in 2013/2014.
How can I tell? If you’ve been reading my blog for a while now, you know some things about me already… but for those who are new or need refreshing: I am a full-time Bitcoin trader. That means I buy Bitcoin on an exchange, then sell them at a higher price on an exchange for profit. Sometimes more than once per day – usually it just depends on market conditions and which exchanges allow trading 24/7 with no day-trading restrictions.You can visit Immediate Edge.
I do it “full time” because Bitcoin is all I trade – and Bitcoin is my only source of income to support myself and my family. So, does having a direct vested financial interest in Bitcoin mean you’re more likely to be successful as a Bitcoin trader? Maybe, maybe not… but I can tell you that if you don’t have that vested interest, then there’s just no reason to care about Bitcoin enough to learn how to trade it well. Sorry!
I’ve been doing this for over three years now, the entire time Bitcoin has been on the open market and available to anyone and everyone (although good luck accessing some good exchange rates back in 2013!). That’s around 750 trading days so far. Bitcoin’s price has gone from below $100 to over $2900 so far. Bitcoin was at around $500 when I made my first Bitcoin trade and Bitcoin was around $1200 when I quit my job last year. Bitcoin is currently sitting around the high 30s, low 40s… not too bad for just turning a quick buck!
Rise and Fall of Bitcoin
In that time though, Bitcoin has taken many wild turns – including those big dips down into the double digits. Bitcoin crashed from just over $1000 to as low as about mid 200s in only a month or two! That was quite a “crash” but Bitcoin bounced back up quickly and steadily. Bitcoin will always do this – Bitcoin can never truly die – it may suffer big losses but Bitcoin will always have a floor. It is not going to fall below $100 again, even if Bitcoin crashes down to single digits – this isn’t anything like the 2008 financial crisis or the dot-com bubble burst. Bitcoin will bounce back up and continue on its way up… but Bitcoin may sell for less than it does today before Bitcoin rises all the way back to new highs. I can tell you that much because Bitcoin has done this every time without fail so far – Bitcoin goes through these bubbles and bursts of rapid gains and then a sharp drop back down as people panic sell, everyone thinks Bitcoin is dead and/or worthless now…but slowly Bitcoin recovers over time as those same people buy back in at cheaper prices (or those who don’t sell their Bitcoin in a panic) and Bitcoin continues on its way back up. Bitcoin may lose half of its value, Bitcoin may even lose 75% or more of Bitcoin’s value at some point… but Bitcoin will always recover.
Just as Bitcoin has done every time before – Bitcoin will keep going up over time because demand for Bitcoin is always increasing due to the fact that Bitcoin can never truly be devalued by any government or banking system and the finite supply means that it will increase in worth over time as there is less and less available – those who missed out now regret it greatly as they watch Bitcoin shoot up even further from where it was when they could have gotten in earlier at a much cheaper price.
Just like during big dips down into the low $200s Bitcoin will recover and shoot up past $1000 again (and Bitcoin did this in record time, like within a month or two each time Bitcoin’s price collapsed – even Bitcoin’s biggest dips didn’t last long!) Bitcoin is not going anywhere – Bitcoin isn’t an investment to sit on and hold for the chance that Bitcoin may become more valuable later… Bitcoin is always becoming more valuable right now because transactions are happening every day and the supply of Bitcoin available decreases. It’s like if you try to print your own money at home – it would be foolish because no one accepts homemade money; only printed official banknotes have value.