Bitcoin has now dropped about 82% in value in a year. A $10,000 investment made in December 2017 would now be worth just $1,772. Ouch! With a drop like this many people have said it is dead, but I don’t agree. Last year at this time people were buying Bitcoin in the hopes that they could get rich quick, but bitcoin and other crypto currencies – excluding scam coins like Bitconnect – were never created just so that people could get rich quick. Bitcoin was created to offer uncensored, secure, and cheap person to person transactions and was created in the wake of the US financial crisis when there were some serious concerns about important financial institutions in America and around the world.
Bitcoin and other crypto currencies have no doubt failed to make it into mainstream transactions. The reality is that sending and receiving money is already so easy with debit cards, credit cards, the cash app, Apple Pay and all the other possibilities out there.
However there are many places where these things are not available and many scenarios where traditional government money isn’t favorable. I find this old article talking about Bitcoin in 2013 to hit the nail on the head. Bitcoin is not about just buying a piece of internet money and watching it rise to some obscene number. Bitcoin and other cryptocurrencies are about providing an alternative when government money is mismanaged or controlled by oppressive dictatorships etc. I really think that this article linked above is a perfect example of why Bitcoin is not dead. Just like the internet helped democratize information the creation of Bitcoin sparked a wave of innovation that is helping democratize money.
I am not voting for or worried about the collapse of the dollar or other government currencies, but I think both government and non government crypto currencies are here to stay and will both serve valuable purposes. This is why I am still buying cryptocurrencies. Earlier I mentioned that a $10,000 investment made just a year ago in Bitcoin is now worth only $1,772. Fortunately, for myself I have been positive in my investments with cryptocurrencies pretty much until I began and even up to now. I have purchased piece of a Bitcoin for as little as $2,412 all the way up to $11,000 a coin. I have been fairly lucky in my timing which has made this crash an easier pill to swallow. I started buying around $2,400 and kept adding more money until Bitcoin reached about $11,000 at which point I sold almost everything because the run up seemed too high too fast. Then I started buying back in at around $6,000 per Bitcoin and have continued to buy all the way down.
As I have said before I don’t know for sure which if any cryptocurrencies will survive for sure so I only put a small portion of our assets in it and buy a bit of all the top 5-10 cryptocurrencies. I don’t know what the best move is with cryptocurrencies, but I am pretty convinced that this drop in price won’t kill cryptocurrencies just like its spike didn’t create them. Does this chart of daily Bitcoin transactions look dead to you?