Why I’ve Been Sleeping Well Ever Since the Cryptocurrency Market Crashed
I spent the past week with decent CEO and Co-Founder, Parker McCurley, at the Blockchain Futurist Conference in Toronto. It was great to hear from speakers of all different backgrounds, but one common theme was the need to tell the audience about when they got into blockchain and/or Bitcoin. These were people who’ve been in the space since 2011, seen the Mt. Gox and DAO hacks and lived to tell about it.
I’m not one of those people unfortunately, I first heard about Bitcoin and blockchain during my senior year of college in the spring of 2014 and I didn’t own any cryptocurrency until the fall of 2016 when BTC was around $600. Until that point in my life I didn’t have any extra cash I could toss into something as risky or unknown as Bitcoin. But I decided to pull the trigger that fall on Coinbase and also tossed some extra funds into the only other available currency on Coinbase at the time, ETH, Ethereum’s token, which was available at $11 per token. I made this small purchase with absolutely no knowledge on Ethereum, but it was fine for me because it was only money I could afford to lose.
Over the next few months the price of ETH dropped to $6 and I almost sold it all (thank god I didn’t). Then in March of 2017, I was spending time with family in the Florida Keys and noticed the price began to explode, making a quick run from $12 to $30. It was only until this sharp increase happen that I began to heavily research Ethereum and quickly became fascinated with the possibilities of blockchain, especially with smart contracts. After this self-education course, I decided this was an industry I wanted to be in professionally, so I began to tell others about the amazing capabilities of blockchain and the conversation of cryptocurrency would almost inevitably come up.
Since the first ETH run up that motivated me to begin to research the technology the price went from $30 to $1,400 (no typo) in January 2018 and from there it all came crashing down in a matter of months where we’re now sitting around $300 in mid-August 2018. While I have converted a portion of the investment back to fiat currency, I still HODL crypto and even though my portfolio has seen a tremendous decrease in value, here’s why I’ve been sleeping quite easily these past few weeks.
The Bridges are Unburned
Whenever the discussion of cryptocurrency comes up with a family member or friend I always make it very clear I’m not going to give them any advice from a potential price perspective. Even though I’ve kept an eye on the markets and the space for almost two years, I’m by no means an expert and have no idea where prices will go (and anyone that tells you otherwise is lying). I’m fine with telling those interested which cryptocurrencies I hold and which I specifically avoid but my investments are made based on which technologies I think will be the most significant in the long run, not based on those that will make me rich quick.
The greatest benefit to doing this is that now, when the markets have plummeted, I don’t have any upset friends calling me nor do I loathe going to Thanksgiving dinner this year with angry relatives.
I’m Safe Financially
“Don’t invest what you can’t afford to lose.”
It’s age-old investment advice and the reason why my stress levels have been even keeled while my investments have dramatically decreased in value. I’m not going to miss this month’s mortgage payment or skip a meal because of the state of crypto. The amount I’ve previously invested was a small portion of my overall wealth. I’ve learned the more you spread out investments and income sources, the less you’ll be affected by the fluctuations of one specific avenue.
The Future is Bright
Last but certainly not least, the future for cryptocurrency’s underlying technology, blockchain, is more positive than ever before. Tokenheads have left or since quieted in the space and conversation have changed focus to actual projects. In Toronto, birthplace of Ethereum and home of last week’s Blockchain Futurist Conference, very little dialogue was being had on the ugly state of the crypto market. Instead the majority of the conversations that were being held focused on the amazing tools being developed with the BUIDL movement. It’s also why I love my job, we’re not focused on the current price of BTC, but instead want to work with truly revolutionary projects like COTI and Swytch to move towards a more decentralized, transparent world.
Where to Now?
The price of ETH and market cap of all crypto could back to January levels or it could plummet even farther from here. Either way I’m not worried about it. Just because others were early adopters and made tremendous gains doesn’t mean you should take out a $300k loan to invest in crypto.
“A fool and his money are soon parted.” — English Proverb
Don’t be the fool.