Bitcoin is currently below $9,000. And not only that, all other cryptocurrencies are plummeting to the ground. Just before the end of December, many were already predicting bigger things for cryptocurrencies for 2018. However, things changed after regulators decided to implement strict rules regarding crypto trading, mining, and other digital currency related activities.
For a lot of crypto investors, it is quite common to see people who are simply investing for quick profits. But what if the best strategy right now is to hold on to your cryptocurrencies?
Charlie Lee, the founder of Litecoin and former Director of Engineering at Coinbase, thinks that it is important that you hold on to your cryptocurrencies now. According to him, if you are looking to invest in cryptocurrencies in long term, then it is good. There is a strong chance that it is going to return to its bullish ways again. However, short-term, he mentioned that no one really knows.
He mentioned in the past that for people who can’t handle Litecoin dropping to $20, then don’t buy. This is due to his observation when Bitcoin went to $1200 in 2013 only to go all the way down to $200 by 2015. That is equivalent to an 80% drop in price. He also mentioned that those people who lose money are the ones that “get in on the high or somewhere in the middle. Then the price drops by a lot and then they have to sell it because it’s too much money for them to lose”.
Bitcoin Drops to $8500
Bitcoin has currently dropped to $8500, something that we have never seen in a few months. And the truth is, Bitcoin isn’t the only one dropping in value. Ethereum, Ripple, as well as Litecoin, have all plummeted between 20% to 30% each.
There are many investors who bought into the hype especially during the time when Bitcoin was able to touch an all-time high of $19,783 in mid-December of 2017. And since different countries have taken their own regulatory adjustments, the buzz has since fizzled and now many are panicking to sell what they currently have in order to minimize losses as much as possible.
India has recently announced that it doesn’t consider cryptocurrencies as a legal tender. Korea, on the other hand, though with no plans of banning cryptocurrencies for good is going to tighten rules and regulations in their country. As for China, they are still not done clamping down on crypto-related activities. And just a few days ago, even Facebook announced that it is going to ban advertisements related to cryptocurrencies.
Perhaps, Charlie Lee’s insights are quite accurate given the fact that countries are still trying to figure out what to do with crypto-related activities regardless if it is trading, taxation, and even ICOs. And because of this, it is possible that we haven’t seen the end of a bearish trend for cryptocurrencies. However, there really is no way to predict it in the coming days. However, let’s keep in mind that blockchain technology is definitely here to stay. Given the number of uses that people and organizations can already have for it, this could easily be the reason why cryptocurrencies are going to survive.