The last time bitcoin’s price slipped below $4,000 was in August 2017, just over a year ago. If the current outrage and panic in the cryptocurrency community are considered, however, one would think that bitcoin at less than $4,000 is an extinction-level event. Experts are cropping up from all over the crypto space with their price predictions, and each one is more depressing than the last.
As surprising as this may sound, however, there are some positives to take away from the current dip, and if you can abandon your anxiety for a moment, you may even make some money off this bear run.
- The world still needs bitcoin
Bitcoin was created for a reason: to ease (and eventually, end) global dependence on the traditional financial system. Luckily, the world’s financial system is slow to adapt and all the weaknesses that Satoshi Nakamoto sought to exploit 9+ years ago still exist today. Banks still charge a lot and take 3–5 days to process cross-border transactions, they still retain near-total control over customers’ funds, and their processes are still hounded by excessive bureaucracy.
In the years since bitcoin and other cryptos came to the fore, hundreds of thousands of people have leveraged them, sending payments all over the world quicker, cheaper, and without much hassle. So, no matter how much bitcoin price dips, the world still needs it. And as long as the world needs and uses it, then another bull run is inevitable.
- Bitcoin has survived worse dips
Investors new to the market may not know this, but bitcoin has gone through worse spells than it is doing now. In 2011, the price of 1 BTC crashed from $32 to $2, losing 94% of its value. By 2013, BTC price had risen back to over $250, and it closed the year at over $700. The year 2015 saw another bitcoin price dip, and the cryptocurrency fell below $250. Over a year later, the price rose above $1,000, and it never looked back since.
As shown above, the bitcoin market is not a stranger to price dips. Every time it dips, a bull run follows and this one will not be an exception. In 2011, as well as in 2015, people believed that bitcoin had come to its end; they were wrong then, and they are wrong now.
- Bitcoin has a stronger support system than ever before
During the past price crashes, the crypto community was still quite young, and BTC was the only known digital currency. Now, bitcoin has a bigger community, and it has the support of Ethereum, Ripple, Litecoin, Monero, IOTA, TRON, and hundreds of other cryptocurrency projects. All these projects have communities, and every one of them will be working towards turning things around.
- Traditional businesses/investors have a stake
Bitcoin’s support system goes beyond other cryptocurrency projects. There are hundreds of traditional businesses that receive payments in bitcoin, and hundreds of others are looking to leverage the cryptocurrency to improve their operations.
Also, traditional investors are not alien to price depressions, and as we speak, many of them are securing large amounts of BTC in preparation for the imminent bull run.
It is natural to panic and be negative. It is much harder to stay calm, think rationally, and make smart decisions; this is why there are more poor people than there are millionaires. While the majority panic and cry, the smart ones are already securing positions in the bitcoin and cryptocurrency markets. One thing is for sure, bitcoin has been in tighter spots and survived; are you willing to bet that it won’t do it again?