I hate to say I told you so....
As I mentioned in my previous article, Cryptos due a pull back, keep a lot of dry powder on hand 6 days ago, we were bound to have a correction, it's just par for the course with the crypto market.
I then wrote an article entitled Bitcoin hits $5000 USD and then gets smashed (by Central Banks?) 2 days ago.
Technically it wasn't the central banks who smashed the price of bitcoin, it was in fact government (The Chinese government to be exact). Governments and Central Banks work hand in hand so I wasn't that far off the mark (it was a coordinated effort).
Watching the wild gyrations of the cryptos allows FUD to creep into your mind but please remember to...
Survival of the fittest
How many times has bitcoin crashed? How many times has Bitcoin been written off? How many times is Bitcoin still being written off? Yet it still keeps reaching new highs and goes from strength to strength.
There is a good reason for this. Bitcoin will be one of many cryptos that will replace the current monetary system. If you want to know why they will succeed and you've not seen "The Secret Of Oz" by Bill Still, please click play below.
If you're too lazy to watch (and I know there are plenty of you!) Bill concludes that you can have a sound monetary system that works, but only if the quantity of available currency is finite. As in the case of Bitcoin (21,000,000), Litecoin (84,000,000) etc.
The problem with our current financial system is the constant quantitative easing by central banks that's completely out of control at around $200 Billion USD new issuance per month.
This makes Bitcoin, Litecoin and other finite cryptocurrencies the only viable option when our current system keels over (and it's well on it's way to keeling over). Although I recommend holding gold and silver, you can't easily do overseas transactions with precious metals, giving cryptocurrencies the upperhand.
There are however specific reasons I hold precious metals that I already covered in my article Precious Metals (Ensuring your family survive and thrive during the next financial crisis) if you're interested in reading.
Hold your nose 'cos here goes the cold water
If you read the article I posted yesterday Do you have any dry powder? Crytpo Sale on right now... I mentioned that it was a good buying opportunity but that I was going to personally wait a little longer.
I think that Bitcoin below $3000 USD and Ethereum below $150 would be extremely good value. At the moment I think Litecoin, Neo, Monero, OmiseGo and EOS in particular are excellent buying opportunities given the pullbacks they've had (you could easily make a 50% scalp within a month). They all have a high capitalization but there is no doubt, there may well be more downside. The entry point is for you and you only to decide if you want to trade/invest.
Our current monetary system is dying
This is inevitable. We've had 55 hyperinflationary episodes in the past century. Even as we speak, Venezula's hyperinflation is completely out of control.
I'm not trying to scaremonger. I'm trying to give calm and practical advise here. Don't be scared, the end of our monetary system is coming and to be prepared for it, I'm personally holding a large cryptocurrency position myself.
Protect yourself and your family. Buying these cryptos on the dip and certainly holding onto the ones you already have during this "crash" is definitely not be a bad strategy.
Remember that you may lose all your money in cryptos but one thing is sure, you will DEFINITELY lose all your money in fiat currency as the governments set out and openly admit that they are reaching their currency devaluation targets (oh sorry I meant "inflation targets"). The choice as always, is yours and yours only.
Happy Trading and Investing...
Please remember that this is not financial or trading advise. Trading and investing can cause significant financial losses