I repeat: Don’t Panic. Think Long-term. Breath.
The world of stocks, funds, precious metals, and cryptocurrencies all have several things in common:
They go up and down.
The long-term trends are up.
Those who don’t panic and/or are patience usually win.
Those who believe in cryptocurrency from a philosophical and economic standpoint are not panicking. They are not surprised about talks of government regulation. Why wouldn’t the government want a piece of the pie? Why wouldn’t they want to control what is happening?
Realistically, what can governments really do, besides tax profits? This would have little to no effect on many crypto holder’s small accounts. Those who are making big profits can probably afford to pay a portion of the profit in taxes (sigh). They have no intention of shutting the system down. They may attempt to regulate or keep track of transactions on exchanges and wallets. While the thought of this is causing some people to jump ship, some are just reaping profits and will get back in at an opportune time.
While institutional adoption helped fuel crypto’s surge in the last 8 months, the grassroots people like you and me are the backbone of the movement. According to crypto expert and economist, Mike Novogratz, this looks more like a liquidation of profits than a collapse of crypto. There will be a new bottom, which is much lower than we had hoped. Once things stabilize a bit, and more speculative short-sighted investors fall to the wayside, Bitcoin and her little brothers and sisters will be in a position to take off once again.
While Mike Novogratz, acknowledges that this will not be fixed quickly, he believes it will be fixed. He states,
“Novogratz also called it a ‘liquidation event,’ as bitcoin overnight fell below $40,000 for the first time in 14 weeks and then dropped to below $31,000 at the morning’s low. That put it down more than 25% in the past 24 hours alone. That’s also a decline of more than 50% from last month’s all-time high near $65,000.”
‘Humpty Dumpty never gets put back together in two days ... when he cracks. It’s going to take a while. The market will consolidate. It will find a bottom somewhere. I’m hoping it’s close to here.’” Novogratz stated.
Novogratz continues, “The story hasn’t gone anywhere. This crypto revolution has happened, but these are certainly setbacks for the wallets and for the investor base. People lost a lot of money, so they’ll dust themselves off.”
Let’s hope Novogratz is right. I believe that he is. I have had a five-year plan anyway. This five-year plan includes hodling, small investments that require little to no actual deposits out of my own cash savings, and continued reading, studying, and making careful investment decisions. I will keep buying on the dips and looking to 2025. If we have another “crypto winter” then I will see that as a positive opportunity to ride the next wave higher than ever. If we do not have a long “crypto winter,” but just short-term corrections, then what has happened the past few weeks will be a distant memory.
I am looking at my holdings as coins and tokens, not dollars. I will continue to add coins and tokens until there is a bull market once again. I have not lost any tokens or coins. They have lost value in recent weeks. Therefore, if I sell now, I lose dollars. If I wait I may lose more, but I am hoping that patience will pay off. It has in the past.
As always, buy, sell, trade, and exchange at your own risk. Only invest what you can afford to lose.
Below is a link to a new website I am building where I recommend and review trusted faucets and other crypto sites where we can earn a little extra crypto while we wait out the storm.
