Stop Panic Selling Your Bitcoins So The Price Can Go Up!
Over the course of Wednesday and Thursday of this week, bitcoin price fell more than 7% to a low of less than $48K. This occurred on the coattails of Biden’s announcement for a major tax increase of roughly 43%, set to be implemented as soon as next week.
“President Biden is expected to raise long-term capital gains tax for the wealthiest Americans to 43.4%, including a surtax.” (CNBC)
Following the announcement, markets saw a sharp downturn as quick profits became the name of the game. Panic selling.
What we must understand is that panic selling is going to kill bitcoin’s ability to go to the moon anytime soon. The problem lies mainly in the fact that the investment/trading space is filled with retailers trying to get a quick buck, and as soon as the price stops going vertical, they panic and take profits while they can.
We have to think about this: How can something go up if the wind keeps getting taken out of its sails? Bitcoin is a network, more than it is a mere currency, and in order for that network to thrive, it must be provided with life and energy. What you put in is what you get out. If investors are just playing around in the water, and don’t understand, nor attempt to understand how the system actually functions, and just look to get rich quick, it’s going to be extremely difficult to go anywhere.
As we’ve seen, even with the billions of dollars pumped into the network by institutions, the price can still take a sharp downturn at any moment when those who make up the network abandon ship. If bitcoin is going to continue on and become a reserve currency, it needs stability among other things.
Sad to say, that those who are not in it for the long run are going to hinder progress. Invest in bitcoin, but also have set up other avenues of income so you’re not panicking every time a chain of green vertical lines doesn’t show on the chart.
I acknowledge the fact that the entire market pretty much dumped, so it’s not exclusive to bitcoin, but this also goes for any currency, though bitcoin (and other cryptos) is different in that it’s not yet a major economic instrument like fiat currencies. It requires a value and historical footprint as extensive and longstanding as fiat to become more than it is now.
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