Bitcoin at $10,000 — What To Do When The Market is Rising Like Crazy
Bitcoin is once again blasting through all expectations. This is an epic bull run the likes of which has never been seen before in the cryptocurrency world, hell, maybe even the traditional financial world! Starting the year just under $900 per Bitcoin, we are now looking at $9,900 — a 1,100% increase in just 11 months. The market cap of Bitcoin has exceeded $165 Billion as of this writing, with the rest of the cryptocurrencies adding another $135 Billion or so making the entire crypto market 1/3 of a trillion US Dollars!
There is some kind of frenzy among crypto-enthusiasts, traders, investors, and now even the general public, and the mainstream media is eating it up and compounding the craziness. It feels, for lack of a better term, irrational.
That being said, this would a great opportunity to ask everyone to be rational in these seemingly irrational times. Assets that increase in value by more than 1,000% in 11 months can be quite dangerous for people who buy into the hype without actually understanding what it is all about. Satoshi Citadel Industries has always refrained from providing investment advice because we believe that Bitcoin is more valuable as a technological platform than a speculative investment, and our business relies not on the exchange rate of bitcoins, but to the utility and reliability of the technology.
That being said, here are some tips on what to do in these crazy times!
- DON’T PANIC!
Don’t panic. The “Fear of Missing Out” or FOMO is a powerful emotion. It can lead to irrational decision-making such as buying more bitcoins than you can afford. Calm down and understand that the market behaves in a very unpredictable way, and this price rise can suddenly turn into a price dump. Calm down and observe intelligently. In the words of Max Brooks of World War Z fame, “time spent thinking clearly is never time wasted.”
2. Invest only what you can afford to lose
Investing in anything is risky, especially if the returns are big. It is easy to get caught up in the fact that the price is going up everyday so you can make some easy profit buying and selling. Bitcoin is much more than a speculative investment. It is an amazing technology that has great benefit to society as a whole. Go ahead and do trading, but make sure you are not breaking your piggybank or auctioning off your beloved dog just to buy more bitcoins.
3. Don’t believe anyone who tells you they can predict the price
Nobody can predict the future. Traders use past data to analyze the future, but it is impossible to know for sure. Truth is, yes, there are many reasons as to why this happens so we can’t always listen to the first person who says they know what will happen with the bitcoin price. Again, keep calm and always rethink your decisions. For people who understand the technology, we never doubted that Bitcoin will one day reach $10,000, for example, but I would say almost none of us thought it would happen so soon.
4. Beware of Scammers!
Scammers will come out of the woodwork when the price is going up because they want your bitcoins. They will use the excitement of people to lure innocent investors into “Bitcoin Trading and investment clubs” asking them to fork over their hard earned cash in exchange for massive returns — Don’t fall for it. If you want to own Bitcoins, do it yourself and make sure you are in full control of your private keys. Now, more than ever, be wary of people that promise to take care of your Bitcoins for you and help you earn. Chances are, they’re not even doing any Bitcoin trading at all.
5. Do Your Own Research and Learn About The Technology
For bitcoin supporters and users, the price going up signifies that the industry is healthy and growing. This is a great time for new people to learn more about Bitcoin and the amazing applications being built to usher a new era of financial inclusion for the billions of people who have no access to banking. The price of Bitcoin is really the least interesting thing about it.
Bitcoin is more than just a way to make quick profits. It is a revolutionary technology that will change the way we do finance and commerce online. The price of bitcoin will keep rising, and will also keep falling. What is important is that we understand how to take advantage of the technology without risking anything. If you are part of this community, you are already lucky, witnessing the emergence of a technology that will benefit humankind in unimaginable ways.