Why has bitcoin dropped so much today?

It appears like the cryptocurrency market has reached a new low over the last couple of days, and I’ve been hearing it everywhere from people who can’t believe what they’re seeing on social media accounts. The cryptocurrency exchange Coinbase is down about 3% this morning after dropping more than 80% in under a week, to almost $12,000.00 (which seems extremely high compared to its previous price) but that just means that it had fallen some more.

The reason for such massive volatility is probably because we are no longer living in a time where things can change so quickly, whether or not bitcoin is an effective currency is something I don’t know. But there is one thing though that I believe could be related to people not realizing how long it has been since Satoshi Nakamoto first started creating bitcoin, and also the fact that it took these guys quite a bit more time than anyone expected.

If you look at all other coins of different types, especially altcoins, when it comes to thematic value, I think that bitcoin has become somewhat of a cult item when it comes to the crypto-community. And it could be because a lot of people buy into bitcoin as their main source of income, even if it doesn’t necessarily make sense for everyone to do that. 

Since we know that it’s an asset class that nobody wants to lose, it also makes sense that some folks might want to keep it around. As someone to speak to that may have lost the investment, there are a couple of reasons why it could help to remain invested in bitcoin. 

via GIPHY

For starters, even with big losses, we can always buy back some bitcoin at any time, so it makes sense to hold it, even when it goes up. 

Secondly, I think that when everybody knows that bitcoin is worth more than gold, it could mean that the market will eventually give it up if it’s going to gets too strong. And that would be a good thing. 

Lastly, it could mean that someone won’t have a hard time holding bitcoin, as someone else does. In addition like most things, we’ll see what happens and whether or not bitcoins end up being a viable option in the future.

I think the truth is that everyone has an opinion on cryptocurrency, and whether they like bitcoin or not is none of our business. However, there is nothing more important than staying focused on doing what you love. And right now this means trying to figure out which bitcoin strategy works best for you, and then stick with it, and it could do wonders for your financial position. 

One very clear thing is that bitcoin is an excellent choice when it comes to investments. Hopefully, the investors you’re reading this can take the money you got from trading bitcoin, and turn it into actual income, by investing in companies like mine.