6 Reasons Why I’m not Afraid of Bitcoin Volatility
In a bear market, it is often easy to lose hope and, at times, doubt Bitcoin and Cryptocurrency. I have been there many times, and Bitcoin has caused me to lose a lot of sleep. The most sleep I ever lost, however, was May 2015 — September 2017. In my previous job, I worked in a bustling and very hectic distribution company. I, along with other members ran, most aspects of the WMS software. As there were always people working between multiple shifts; I found that I was working 12–14 hours a day and most nights I would be home around 10:00 PM. As tired and emotionally drained as I was, I was rejuvenated by the fact that I could have the next 2–3 hours to work on Bitcoin research and contact my clients concerning their cold storage questions. Yes, I lost sleep, but it was because I actually couldn’t sleep due to a few crypto related reasons (I’m guessing some readers can relate)
- Constantly refreshing Coinbase on my phone, and watching the price movement.
- Always worrying about if I wrote down my Ledger Nano S private keys correctly.
- Fear of not being able to log into Bitfinex and losing my funds.
- Regularly reading new and exciting information about Bitcoin and these strange things called ICO’s.
- Watching youtube videos with guys in trucks talking about shit coins.
- Wondering if I had potentially wasted a substantial portion of my liquid assets on imaginary internet money.
Despite all these rational fears I understood that this was potentially the “Next Big Thing.” I remember thinking in college that something like the internet boom was a once in a lifetime opportunity. I realized quickly after the 2013 spike to $1200 that Bitcoin was something I needed to look at.
Short term price fluctuations should not scare investors. I firmly believe that Bitcoin has yet to find its place in our world economy honestly. I also feel strongly that the Bitcoin of today will be drastically different than the Bitcoin of 2025. Bitcoin is entirely a speculation game in the current state, anyone who claims otherwise is unrealistic. The foundations and infrastructure of Bitcoin allow for a choppy and stressful exchange of value in a decentralized and censorship-resistant environment. This is great, but we need constant improvement from the Bitcoin ecosystem. Long term use case and for Bitcoin is massive, I imagine a world where international oil trading, commerce, and real estate is settled on the Bitcoin network. I believe we have only seen a small speculative taste of what Bitcoin is capable of, and regarding price, I expect that it too will drastically rise as multiple use cases are found.
I don’t worry price volatility in the short term because of the following:
- Bitcoin forks will eventually die off, and that capital will be put back into Bitcoin.
- Most alts will go to zero, and much of that capital will go to strong alts and Bitcoin.
- Improvements in scaling will occur — It just takes time.
Never invest more than you can afford to lose, and always invest in Bitcoin with a 2–3-year time horizon.
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