Not exactly am an eye-popping title, isn’t it? Anyone associated with cryptocurrency knows this.
Anyone going to the Coin Market Cap website can see all of the red.
I decided to write this short article because I do see a comeback … an even stronger one.
In my last article, I gave reasons why the market is down and there are a few reasons I did not mention in that article, but I will mention them here. I also mentioned that January is one of those bad months for cryptocurrencies.
Corruption is everywhere. It is in government. In banking. In the stock market. In, well … in everything. Cryptocurrency is not immune to it either.
You may have heard the news about exchanges and a few lending platforms closing their doors leaving many holding a bag of nothing. In late December, Coinbase was accused of “Insider Trading.” Initial Coin Offerings (ICOs) being banned in the United States and in China. Rumors that South Korea plans to ban all cryptocurrency exchanges (that rumor was false).
Recently, the government of India – the worlds seventh largest economy – announced that it does not consider cryptocurrencies legal tender and with try to phase out payments using Bitcoin and other cryptos. They, like other opposing governments of cryptocurrency, are playing the money laundering and fighting terrorism cards. Those things exist under the current FIAT system. The Indian government has not ruled out the use of Blockchain technology. Thus, technically, Bitcoin has not been banned in India, but will not be a part of the payment system in India.
Then there is the suspected subpoena of one the worlds largest cryptocurrency exchanges, Bitfinex and Tether, by the U.S. Commodity Futures Trading Commission (CFTC) of Bitcoin market manipulation.
Put all of the above together, plus what I mentioned in my previous article, many people are (1) FUDing (running scared) and selling their Bitcoin and (2) January is a traditionally bad month for cryptos. Get used to it folks, if you are able. I wrote about such storms that would come and go.
Personally, I do believe that the invisible rich-and-powerful do manipulate the cryptocurrency marketplace because it is easy to do – if you have the wealth- and because it is unregulated. They have done it and to a measure manipulate the stock market. Remember, the movie Trading Places starring Eddie Murphy? While comedic, it is not far from the truth.
What I see at present is a filtering out of all of the bad Altcoins. When the crypto marketplace drops like this, the bad Altcoins will not survive. I had mentioned in previous articles that the majority of the coins in the marketplace are scam or junk coins.
My strategy is to invest in the best coins and hold them for the long term. They are the anchors that will get me through the storms now and those to come. While at the same time, I will make riskier investments in cryptocurrencies as well.
While in the Federal Government (+42 years), I was automatically enrolled in what is called the Federal Employment Retirement System (FERS). A great retirement plan that provides retirement benefits from three different sources: a Basic Benefit Plan, Social Security and the Thrift Savings Plan (TSP). Well, while in the TSP plan for all of those years, the government would choose and trade stocks for me in my TSP account. There were no-risk stocks they would trade, moderate-risk stocks, and riskier stocks. My point here is that even FERS understood riskier investing. I have colleagues still in the Federal government whose TSP accounts sit at over one million dollars! They could retire but many of them like their jobs and it fills their days. In other words, they have been in the federal government for so long, it has become their lives. They are institutionalized. They would not know what to do outside of it
I drift at times …
Anyway, I am riding out the dip and continuing to buy more Bitcoin and boost up on more of the Altcoins I want.
I see big returns in the years ahead.
Don’t panic and run in the direction of the crowd.
Remember, invest only what you can afford to lose.