Why
you should invest in Bitcoin and Cryptocurrency
Imagine yourself
standing in a big box store dickering with the salesperson about the
price of a big screen smart tv. It's on sale, but you want it lower,
you are a savvy shopper in this marketplace, and you know the
salesperson wants that commission.
But you can't seem
to talk the price down any further, and why? What's that noise?
Turn and look.
There's a crowd outside the main entrance, pushing, budging,
beginning to pound on the locked doors, and on the street, more are
searching for parking. It's a mob scene. Word has gotten out, it
seems.
Demand
is growing so fast the doors were locked against the incoming mob.
This is the Bitcoin
and Cryptocurrency market at the moment. All evidence suggests we
have reached the tipping point into early adopters sooner than
expected; and as they rush into the marketplace, it is at a pace so
furious that the infastructure cannot support it. The highways and
bridges – major exchanges and fiat entry points -- cannot carry the
traffic.
Many major
exchanges, including Binance, Bittrex – and others being added
daily –have shut down new account creation. What was once as easy
as entering and confirming an email address and sending in some BTC
LTC or ETH has become impossible overnight. Before the shutdown
exchanges were processing 250,000 or more new account requests every
day, meaning millions of new buyers per week, and when Binance
attempted to allow new accounts once more, they received 240,000
requests in a single hour and had to pull the plug again.
These aren't players
who have tons of coins and tokens they want to sell. These are new
people looking to get in. Holding their first BTC or ETH or LTC in
their hands, they want to get in on the altcoin market, where instead
of 100 times they expect to gain 1000 times or 10,000 times.
They've
heard the stories and they want in. Now.
So on the recent
market “correction” which entailed a 50% pullback on USD price
for Bitcoin and most other altcoins, we are seeing some signs of the
new pressure building in the speed of the bounceback. Traditional
technical analysis is becoming less and less accurate due to this
influx of millions of new players to the field every week. They
don't behave traditionally, they don't “follow the rules” and
they often want to buy at today's price, whatever it may be, and hold
long term.
I was one of the
geeks trading cryptos when cryptos weren't cool. We were a small
group, internationally speaking, trading with one another and
watching the rather predictable moves of the “whales” as we
attempted not to be squeezed out or rekt in the pump and dump
ecology. We were, by nature, the risk takers. The Innovators who
knew we were playing with fire but were taking our burns and going
on. After a year and a half, that ecology appears to be changing.
Climbing
the Charts – It's got a good beat and you can dance to it.
This last year the
crypto market followed some of the basic principles of Forex trading,
and in 2017 those methods, adjusted slightly, worked amazingly well
in predicting the highs and lows. Learning those basic methods I
stopped losing money and started gaining rapidly. But I have
witnessed many expert chartists I follow recently having to come back
after the fact and say some version of this: “I was wrong on how
high it would go and how fast it would get there, I underestimated
the exuberance of the market.”
I think what's being
underestimated is the pressure of that crowd outside the doors. They
can't get in, they want in, and those of us on the inside look over
our shoulders at that demand kept at bay, and we HODL stronger and
buy at a higher price with more confidence. We know that
cryptocurrency is not going to disappear and/or drop to zero. In the
old days that was still a possibility, but now the market has gained
enough of the world's wealth to become immortal.
Kiss
my butt Powers That Be. We are coming for you.
As new exchanges
open and existing exchanges attempt to scale up to meet the demand,
this pressure will find it's way into the market. Some will find a
way around, or break through, or buy someone else's account – these
buyers will find their way in eventually. If the existing exchanges
don't up their game quickly enough, and begin to shine by being
responsive, easy to use, and with reasonable support ticket response
times, then they will find themselves made obsolete.
Peer to peer
exchanges, atomic swaps, wallets with exchange capabilities, all of
these projects exist or are already in the works. The beauty of
decentralization is that what the customers demand, they will be
provided. What they need and support will thrive, because they will
invest in it themselves. Any attempts to stop the tsunami of early
adopters will be overrun by sheer demand and the ability of
blockchain to respond with working products faster than any slow
moving corporate behemoth can roadmap a new project.
Welcome to the
market, newcomers! Watch out for scammers and projects with no real
business or social usefulness, identify some to believe in, listen to
sound advice, then make your own decisions. And when you've made
good choices, listen to everyone and HOLD ON FOR DEAR LIFE (HODL).
The best piece of advice, and one I wish I had listened to at the
time, was given to me in an exchange chat box in 2016. A wise man
said:
“Buy cryptos, all you can, then go down to the pub.
Come back in a year, cash out, and buy the pub.”
Those days are
coming, those dreams are reachable for the common person for the
first time in many centuries. And unlike other “investments”
this is a game where your knowledge, skill and patience actually
allow you to win – and if you don't have the first two you can
likely win by throwing darts at the top 100 coins and having
patience, given the overwhelming flood of buyers seeking to get in.
Mass adoption is still years away, and you are here early.
Welcome indeed –
This is the right place, the right time, and the right equal
opportunity moment. Get yourself setup to purchase, even if you don't
have funds. Get on Coinbase or Gemini and get verified. Spend time
learning what you can. When exchanges allow new accounts get one on
every exchange you know is legit. Then, cash out your change jar,
your savings bonds, return your Christmas presents – buy a spread
of solid coins, and come back in a year and tell me which pub you
bought.