Today I want to talk about the reasons why I believe the cryptocurrency bubble is way too far to pop. Firstly, we need to define what a bubble is; there are so many people out there misusing this word and thinking that Bitcoin is indeed a bubble just because the media or their favorite YouTuber says so. But you have to educate yourself and come to your conclusions before taking any decision. Here's the definition from Investopedia and I quote: "A bubble is a rapid escalation of asset prices followed by a contraction. It is created by a surge in asset prices unwarranted by the fundamentals of the asset and driven by exuberant market behavior. " Sounds familiar? From the last months, Bitcoin and altcoin prices faced significant spikes in valuation, leading to a lot of retail investors to join on board this exuberant market.
I've seen a lot of influencers in the cryptocurrency community staying overly-optimistic about the recent downtrend correction that, in their terms, it's just a "normal cycle of the cryptocurrency market." But, what if the next "normal dip" is the bubble popping? Are you prepared? For me, I'm ready and I understand the consequences of investing in this market, but thousands of new investors know nothing about this, and it will take them by surprise. Please, be aware of where are you standing and where are you heading before making any decision.
The reasons why I believe the bubble didn't pop yet are straightforward. You can understand my point by watching popular YouTube channels of cryptocurrency leaders. These crypto channels have on average between a hundred and two hundred thousand suscribers; this is nothing compared to famous makeup or comedy channels. And if they can pump a coin with such a small audience that means that we're way too far for mainstream adoption as this is still a tiny community. Also, keep in mind that the media coverage related to cryptocurrencies is mainly about its price and regulation but not about their real-life use cases. We're at an early stage with little to no regulation because governments are still figuring out what to do with cryptos. You understand my point? We're still pioneers in this industry, and there's room to grow to achieve mainstream adoption, and potentially, there is still time before the bubble pop.
However, don't confuse my words with optimism, I still think we're in a bubble, and it may pop anytime, either in the next couple of months, the next year or maybe never. Nobody knows, but you still have to be prepared for the worst. How can you be prepared? Easy, number one, stay updated with the latest news, the most powerful tool to make better decisions is information, just make sure the source is real and the story is not a misleading interpretation. Number two, diversify your portfolio, it's not all about cryptos, there are other investment options as well. And number three and probably most importantly, have an exit strategy, define when, how and with how much are you going to take profits.
Remember that at the end, this is all about money, and people are losing their life saving for the hope to get rich fast and easy. Consider this, be prepared, have a plan, and enjoy your profits.
If you like this post, please subscribe and upvote. And I'll see you next time. Thank you.
I would hope by now that people would see its not gonna be quick money, and you are definitely at risk out there, I’d put your crypto vote/dollar in steem, check my most recent post why I think it beats the mighty bitcoin
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit