One of the biggest reasons that Bitcoin Cryptocurrency has not yet reached mass adoption is a matter of fear. It is always big news when Bitcoin either reaches a new high or a new low when it crashes. There are long periods in between that go unnoticed because it doesn’t really get much attention. This makes many people think that it is much more volatile than it really is.
When they start hearing about how high it is going, they start wondering if they should buy in. then they inevitably start remembering the last crash and decide to let it go this time.
The reality is that just about every currency goes through these cycles.There is still a fear of the unknown when it comes to cryptocurrency. Will there be a crash with bitcoin at some point? Probably but it may not be that bad anyway.
In this article, we will go over why you should think about buying bitcoin and not worry so much about if it crashes.
1 – Crashes don’t last
Remember when everybody was buying cryptocurrencies like Bitcoin and Ether back in 2017? Things were hot and just about every currency was growing like crazy. BTC to ETH was at an all time high.
Then, almost overnight in early 2018 it all came crashing down. Bitcoin went from around $19,000 per coin to under $8,000 early in that year.
Yet, here we are just a few years later and bitcoin is at an all time high of over $20,000. Because the blockchain is a new technology there is always going to be a bounce back in value when there are advances in the technology itself. From more reliable cryptocurrency exchanges to how quickly blocks can be verified making transactions much faster have all contributed to the currencies gaining value over time.
There are some smaller altcoins that may not survive a crash, but when you invest in Bitcoin or Ether or any of the other larger and more established coins, then you just need to be ready to ride out a crash.
If you think long term then chances are good that you will enjoy some gains.
2 – The value is in the volatility
People with money love market crashes. Whether it is a housing bubble that bursts or a stock market dip, these crashes are good times to invest. Buy low and sell high is the mantra for any type of investing.
When things crash, people understand that this is going to scare people away and there will be something of a fire sale of currency as they look to sell.
When you scoop up bitcoin after a crash, you are very likely to see some incredible gains. Now, if it is so volatile that any gain is followed by a crash every time then this would be different. But, it isn’t this way. Taking a look at a chart of the last few years, it is obvious that the crashes are not nearly as frequent as they seem. And they all end up with relatively quick bounces back.
This is the time to sell. When it is high. Or, you can buy it low and then hold onto it. There is no telling how high bitcoin will go. As it becomes adopted by the masses, it will only gain more value.