Posts Tagged ‘Bitcoin Price’

Time to Sell?

Posted on: February 5th, 2018 by jms No Comments

 

I did it… I pulled the trigger and sold my entire position in Bitcoin, Bitcoin Cash, and Ethereum.

 

I was holding off for a while as I watched the price of cryptocurrencies fluctuate a few hundred every day. But I just couldn’t ignore the steady decline over time, so I decided to gamble on the fact that ongoing government regulations and consistent shorting on futures funds is prompting a big sell-off.

 

What’s even worse, the days of using credit as leverage to buy into cryptocurrencies are dying, resulting in a smaller pool of buyers, which can drive prices down even further.

 


 

There is a lot of news circulating that has a lot of bias, and it’s bias on both sides of the spectrum. What I’ve always tried to do when writing my own personal opinions on this topic is to offer a more balanced view. Granted, I am very bias towards favoring Bitcoin and other cryptocurrencies, but I do make a concerned effort to put my personal bias aside for a more balanced look at things. This will not only benefit anyone who reads this, but myself as well, since it forces me to ignore the noise and formulate my own opinions that will ultimately dictate my own actions. And my own opinions say it’s time to sell, especially if you got in early and saw a significant gain over time.

 

I thought about selling when the price was making a push towards $20,000, but I let my cognitive bias get the best of me then. I decided to not let that happen again, since the idea of losing more would border on stupidity in my opinion. If I can walk away with a decent profit, why not? I may have missed an opportunity to sell higher, but I can still sell high, and that’s a good thing.

 

There are many forms of cognitive bias, but the one at play with Bitcoin I think is the idea that we tend to seek out or favor the information that supports what we want to believe, or confirmation bias. In this case I want to believe that the price of Bitcoin will keep going up even as it’s falling, so I’ll trick myself into believing that this is actually the case.

 

I’ll convince myself that tweets from “experts” on the topic telling me to “hodl” (hold) is the right thing to do, even though other experts, like Warren Buffet and Ray Dalio, who I should probably trust more, say that Bitcoin is in a big bubble.

 

I’ll convince myself that news I read from sources like bitcoin.com, or other popular crypto-news sites, have a valid point and aren’t just putting a creative spin on the negative news from other sources.

 

I’ll convince myself that governments starting to crack down on cryptocurrencies won’t really have a significant impact because of a funny meme I saw online like this one…

 

 

(It turns out that some countries can make a significant impact)

 

 

It’s time to get real. Bitcoin is dropping fast and for a number of reasons. All the wishing and positive spins in the world won’t change what’s actually happening. Don’t get me wrong. I’m still a big believer in the technology and ideology, and I’m still long on Bitcoin. But while it’s dropping I’ll take a profit while I can. I’m sure I’ll buy again when prices bottom out, but for now I’ll cash out and cover my gains.

 

My advise to anyone who can sell at a gain is to sell now. Unfortunately, this isn’t the case for everyone. For anyone who can’t sell at a gain I only see 2 options.

 

1) Hold if you can afford to and hope for the best. I do think there will always be value tied to Bitcoin in some way, even if it never climbs back to where it was. Remember that Bitcoin and blockchain technology is still relatively new and evolving, and so it still has a lot of potential. Holding if can afford to is probably not a terrible strategy.

 

2) Cash out and accept your loses. Despite what we may read, cryptocurrencies are a gamble right now. When we place bets we have to be willing to lose sometimes, otherwise we shouldn’t be placing bets. The good news is that most people (governments included) agree that blockchain technology is here to stay and cryptocurrencies, in one way or another, are likely to have a place in the future of trade. So even if you decide to sell at a loss now, there is a good chance you can buy back in later when things level off, and hopefully make a profit then.

 

 

Bitcoin’s rise and fall and rise and…

Posted on: January 19th, 2018 by jms No Comments

I recently read this hilarious article on how to write blog posts about Bitcoin using a template that will work regardless of Bitcoin’s current price, so I decided to give it a try…

 

 

 

 

Today, the price of Bitcoin has bounced back from yet another drop. Most experts attribute the drop to news circulating around about South Korea (and other countries) looking to ban all cryptocurrency exchanges, while some skeptics are singing the classic “I told you so” tune.

 

Tom Lee, one of Bitcoin’s bullish forecasters, seems to think we’ve seen a major low of $9,000, and is predicting $25,000 by the end of this year, which would actually make now a perfect time to buy more cryptocurrency.

 

Also dropping and rebounding in the crypto market these past few days is virtually every other cryptocurrency, including Ethereum, Ripple’s RPX, and Litecoin, which also saw all-time highs this past year.

 

The driving factor behind the frantic fluctuations does seem to be talks of South Korea wanting to ban all cryptocurrency exchanges.

 

 

When News Breaks Regarding a Ban on Bitcoin

 

 

We should expect to see price fluctuations to intensify when news breaks about counties looking to regulate Bitcoin, or if we hear about someone like Mark Cuban, who once spoke against it, now looking to accept it, or even when a company like Kodak is mentioned for its seemingly forward thinking executives, who now want it on the action.

 

Only time will tell what this means for Kodak and other random companies who had nothing to do with the cryptocurrency revolution whatsoever, but decide to put out press releases mentioning “blockchain technology”. As for the rest of us, I guess we’re all just stuck in the middle of this crazy rollercoaster of a ride. But I for one always liked rollercoasters!