Hey everyone!
Everyone’s been asking me why Bitcoin crashed $10,000 a couple days ago, seemingly overnight…
Honestly, I have no idea, but Willy Woo does! :)
Here’s the thread, I would encourage you to read through it if you are interested…
Basically it looks like it was a combination of things….
1) Giant power outage in Xinjiang China (which was known ahead of time by someone in China with a lot of Bitcoin)
2) Someone with 9,000 BTC who knew the power outage was coming, moving his coins to sell…
3) The combination of the sell off of those coins, plus the blackout temporarily reduced the Bitcoin hash rate…
4) caused massive liquidations in the trading market which sent the price plummeting…
That’s a very high level explanation, see the thread for more details.
But the REAL question is, does it matter?
I hate to break it to you, but later in the year, when Bitcoin is crashing from $200,000 down to $150,000 in one day, this is going to seem like small potatoes….
I hate to break it to you again, but this is WHAT BITCOIN DOES…..
Price swings like this are what you PAY for in order to get FREEDOM and MASSIVE UPSIDE.
What do I mean by this?
For instance, let’s take more “traditional” markets, like the stock market, say Apple stock specifically.
If Apple stock crashed 20% in a few minutes, likely the rest of the market would do the same.
The federal reserve would instantly go into a panic, and wall street would get bailed out, yet again.
They would print trillions and trillions and inject the market with liquidity.
Bitcoin has no such circuit breakers.
The market doesn’t stop trading if the price starts to fall.
The market doesn’t even stop trading at 5pm for the end of the “work day”.
It is open, free, completely decentralized, and out of anyones control.
In order to go from fringe experiment to World Reserve Currency, without the help of these traditional institutions, there are going to be swings, plain and simple.
The good news is, these swings, over a longer period of time, have equaled 200% YEAR OVER YEAR RETURNS FOR THE LAST 12 YEARS.
It’s the best performing asset of all time.
And the good news is, if you know what you’re buying, these price swings affect you exactly ZERO percent.
Was I stressed out when my wife was like “what the hell is going on!” at midnight the other night as I watched the price crash?
No, I was checking my bank balance seeing if I had any money to buy more at these lower prices.
Why is that?
Because NOTHING, and I mean NOTHING has changed about the investment case for Bitcoin.
World Governments haven’t stopped the money printing binge, and they never will.
There’s still only 21 Million Bitcoin.
The institutions are still coming and buying in force.
There LITERALLY aren’t enough coins to go around (record number of coins being purchased and taken off exchanges, never to be seen again)
The past Bitcoin cycles place us at MAYBE halfway through this bull run. Which means we have AT LEAST 2-3x upside from here, THIS YEAR, probably 4-5x.
So, yeah, these dips might scare people who are crazy and trading with leverage or who don’t understand what they are actually buying.
For me, it’s just an opportunity to scoop up more coins.
Remember how it seems “crazy” that anyone could have bought Bitcoin under $10,000?
Like, that would have been such an INSANE opportunity, right?
That’s EXACTLY how people are going to feel about $60,000 in about 3 months…
See you tomorrow if you’re subscribed!
Kale
Why did Bitcoin Crash $10,000?