So whether you’re currently trading in cryptocurrencies or not, you may be interested in what’s currently going on. I am not a financial expert by any means, however I have grown very good at reading people, understanding human psychology, and, because of this, I have made a few specualtions.
The Crash of Bitcoin
For those who follow cryptocurrency, at the beginning of September, we watched as Bitcoin had peaked at just shy of $5,000 USD. Since then, it had a slow decline that spead up and eventually crashing to a low of just under $3,000 USD at roughly 7:30 a.m. EST.
To many, this was seen as the start of a collapse of this fiat currency. One primary factor for this crash was the announcement from China that they would be shutting down all cryptocurrency exchanges at the start by September 15th at midnight (see Fortune Magazine Article). Having such a recent explosion in popularity, many of the traders in cryptocurrency aren’t quite trusting of the system and primarily are using as a way to make money. So this news would obviously frighten many of them into selling, and selling fast.
The Comeback Bit
After this drastic drop in the cryptocurrency market, there was a sudden bounce back right as the three primary crypto currencies (Bitcoin, Ethereum, and Litecoin) hit their lowest point in rouhgly a month, stopping this downward trend. Now, there’s a lot of speculation to gain from this and you can—and should—seek out more information on this, but I will give you my opinion.
Right now, there aren’t many businesses willing to accept this type of currency just yet. However, there are quite a few giants who currently are. The retail company Overstock.com is one such company. Being a relative competitor of Amazon.com, it gives them one advantage that the retail giant currently isn’t meeting.
However, prior to the announcement that China would be shutting down cryptocurrency exchanges in Beijing, there was talk of Alilbaba (the China equivalent to Amazon) potentially accepting Bitcoin. Being a major competitor, this could have struck a blow to Amazon.
Now that Bitcoin has had a pretty hard crash and survived since it’s massive growth, I believe this proves that although some may lose faith, the audience who has not isn’t leaving. I beleive that if Amazon.com continues seeing the consistency of Bitcoin, they are bound to eventually accept it. With that in mind, I believe it will continue to grow after this crash and will be rising again.
Based on what you’ve heard, prior knowledge, and what you’ve heard elsewhere your thoughts might be “Buy, sell, or hold?” Well, As I said, I am no financial or trading expert. However, here’s one piece of advice I will give you: It’s all a game of risk. Please only take risks you are comfortable with and never let anyone, including gurus tell you other wise. Even if it may result in making millions, the regret of loss is much harsher than the potential happiness gained.
So tell me what your thoughts are. What do you think will happen next? To where is the state of crypto currency going from here? Also, if you have any comments question, whether you agree or disagree with my thoughts leave them down below. And if you like what I’m posting, share it on social media!
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