Is This The End of Bitcoin?
In November 2017, I wrote a book about Crypto Currency Trading (https://amzn.to/2Baqglc) in which I correctly predicted that bitcoin would crash soon. At the time, one bitcoin was trading at the record high of $7,350 and it was showing no signs of slowing down. Actually it was breaking past some of the wildest expectations. Of course, I received numerous emails with insults and threats because of my prediction.
One month (7th December 2017) after I published the book, the price of a bitcoin had almost doubled to $13,741. If it hadn’t surpassed expectations at 7k, it definitely did at 13.7k. I had two conflicting emotions about this massive rise. The first emotion was intrigue, because the more it rose, the more certain I was that it would come crashing down hard and fast. Actually one day while I was in my office looking at the charts, I turned to a colleague and said, “Lots of people are going to lose money. This is going to come down hard.”
The second emotion I had was fear that I had been wrong. Was it possible that Bitcoin would not follow the general trends of other altcoins, and instead be a phenomenon of its own? You see my prediction was based on a pattern that absolutely ALL crypto-currencies follow. Let me show you what I mean:
You see, Stellar Lumens, which is one of my favorite currencies, is a perfect example. It has risen exponentially and fallen exponentially — twice over a period of about 3 years. Every single crypto currency goes through these quick bursts and major falls in their own time frames. Bitcoin had never been through one. Its price had never fallen very sharply. In essence, it was still on the rise, and this rise was becoming unsustainable.
One day later, on the 8th of December, it had reached $17,233. It was a huge gain — approximately $3,500 dollars in 1 day! And the very next day it had started to crash. But it wasn’t the end yet. It would rise again a few days later, and hit over $20,000 by the 17th of December. And that rise would be its record high. A huge number of people have lost tens of thousands of dollars.
Since then it’s been depressing for most people to watch bitcoin — but not me. I was ready for this. I had predicted it. As I type now, the price of bitcoin is at about $5,600 and it seems to be stuck there.
So is this the end of Bitcoin? Besides the high transaction fees that make it impractical to use for small, everyday purchases, it’s still a really brilliant currency for trading. And if you look at the Stellar Lumens chart above, you will start to see that bitcoin is following a similar pattern. It’s now “bottomed out” — which means it’s going to start rising again soon and this time I predict that it will surpass the 20k mark on its next peak.
If you want to invest in something that’s going to be profitable, buy bitcoin now. But buy sensibly — a little bit at a time whenever you can afford to because this is not the end of bitcoin.