Although people talk about how volatile the Crypto markets are and that Bitcoin is in a bubble. Reality is a lot of what is allegedly volatile is predictable and as such the recent drop in Bitcoin price wasn’t a bubble but simple people withdrawing profits. Myself I took out $5,000 of profits to cover my expenses until February allowing any money still in Crypto to be used to invest in the ICO’s and coins I see having the most likely success in 2018. Spreading among multiple investments to guarantee a success rate. If anything I have learned over the last 7 months in Crypto is that there are so many people chasing the media to make a quick buck.
Every time there is a market downturn they talk about how things could be coming to an end and you see a lot of negative stigma around Bitcoin and the Crypto markets. Yet in reality Bitcoin cannot be a bubble. I have already covered this topic and the fact that since Friday we are seeing a recovery on its price it shows it is in fact a “currency”. A currency that has a need and use and as such is effected by market demand and needs. One thing it can’t be is a bubble as it lacks the dynamics to achieve such a thing.
However what people don’t seem to cover as much is the manipulation by Whales, hedge funds and other bigger investors which are the ones that plummet the price of Bitcoin on a cycle. Every time they pull out their masses of profit the values of Bitcoin and Altcoins drop significantly as we have seen since Friday. But if you simply look at the Coin market cap over a period of time you will see these dips are not only predictable but occur on a regular basis. Yet you will see YouTube showered with everything in the red etc. instead of actually explaining that its normal in this market. But also its not as volatile as people are told. If anything we are in a growth market and as such we are not seeing the demise of Bitcoin but the growth of Crypto. Recently just in my own portfolio I have seen 5 Miles now become a business venture offering goods to people within a “5 miles” radius for sales and wants. Bonpay also has begun entering into providing its prepayment cards and this doesn’t even start getting into the many other ventures that are now 100% built on blockchain technology and investment. Which is where the stability of Bitcoin and the crypto markets will continue to grow for at least the next 3 years. I do estimate that as government scaremongering will have very little impact (as it does currently) over time legislation will start to push its way in to control the Bitcoin and crypto markets. The recent Bitcoin cash fiasco relating to insider trading at Coinbase is a prime example of how far things have come. When a crypto market is now recognised by laws and regulations relating to exchanges. As things continue we will no doubt see the tax authorities trying to reach deeper into the market place to gain control of people that have managed to create incomes outside of their reach. At the same time it doesn’t mean that things won’t continue to develop and evolve in other directions.
For example if exchanges started to pop up in tax havens how much Crypto do you think would be moving to those countries? How far a reach does the tax authorities believe they could reach? This is why they are focusing on things like Initial Coin Offerings (ICO’s) and other entities that are much easier to trace and the exchanges where money enters and leaves the crypto world. However we are not seeing a Bitcoin bubble starting to burst but more a case of the evolution of Crypto becoming a far more developed and evolved beast. In the last year more and more business professionals along with first time investors have entered the arena and with it the demands of the users of crypto has increased along with the businesses built on it.
For me this is the beginning of change from centralised government and corporate control to a global environment where they may want to try and stamp out these enterprises but are finding it not only harder to do so overtime. But also the new businesses will become their main competitors in the real world but often with the wisdom and power of the crowd. The Bitcoin bubble is not bursting its evolving and all I can say on this is don’t be the headless chicken that is often pushed on things like YouTube but instead ride the waves and prepare for the next generation of Crypto.