Feb
The Bitcoin Life Raft - It's a Dog Eat $Doge World
Since my article on the 17 November 2020 (It Was A Window Of Opportunity - Bitcoin & Cryptocurrencies) Bitcoin rallied and broke its previous all-time high. Some people thought it would then drop in value but it never did. In fact, it went on to double in value, rallying to an astounding US$41,000 to set a new record. Yesterday, Bitcoin exploded to another record high after it was announced Tesla bought 1.5 billion worth of bitcoin and expects to start accepting the cryptocurrency as payment. Bitcoin went up US$4,000 in about 15 minutes following that news! All that $doge coin trolling and the whole time Elon Musk was stacking Bitcoin. It's a dog eat $doge world! I hope people do not lose money on dogecoin, when there's so much real value and smart long-term investments they could be making in the crypto ecosystem (e.g. Bitcoin, Ethereum, Cardano, Polkadot, Chainlink and other DEFI coins). Dogecoin recently climbed into the Cryptocurrency top 10 on market capitalisation. Perhaps Dogecoin will offer long-term gains and many investors will regret not jumping on the $doge bandwagon.
When you look at everything that is happening right now and understand what is coming down the pipeline, Bitcoin, along with other hard assets such as gold, are probably the safest places for our investments. There are sound reasons Bitcoin is shooting higher. Bitcoin offers us a life raft. Would you rather be guaranteed to lose money sitting in cash in the bank, or, hold another asset that cannot be inflated or debased? Of course, there will be further price corrections like we saw in January 2021, where the price of Bitcoin dropped to around US$30,000 on two separate occasions. Great opportunities to "Buy the Dip". This will pale in comparison to another big market crash, which seems inevitable but I am no economic expert. The "Buy the Dip" opportunity of a lifetime, assuming exchanges do not suddenly go offline claiming too much traffic! It is difficult to say how well Bitcoin will hold up against uncertain market conditions which is scary, but in the event of any crash, Bitcoin is still our life raft to the future. Historical data and online metrics show the likely trajectory of Bitcoin. HODL.
Published in February 2021
