The price of cryptocurrencies has fallen in recent weeks. The price of Bitcoin, for example, has gone down from about $20,000 to about $6,000. Many people are selling their Bitcoin and other cryptocurrencies because they have lost confidence.
This article explains why you should buy now. In fact, you should buy more.
The reason is simple: the people who are selling their cryptocurrencies are the ones who bought them for speculative reasons. They didn’t believe in the technology; they just wanted to make money. So when the prices started to fall, they panicked and sold out at a loss. You should buy from them because you believe that these technologies will change the world and make your life better.
Cryptocurrencies are basically just computer files. We can copy files easily; and we know how to secure them so no one can tamper with them or steal them. They can be used as money because they are hard to counterfeit and easy to transfer securely over great distances in a split second and at almost no cost. Cryptocurrencies allow us to do things that were previously impossible; things like giving everyone on Earth access to banking services, even if they don’t have a bank nearby; or making it possible for anyone anywhere to set up an online store even
I’m writing this post to answer three questions:
– Why are cryptocurrencies worth buying now?
– Which cryptocurrencies should you buy?
– How should you buy them?
Why Buy Cryptocurrencies Now?
The time to buy cryptocurrencies is now.
For a long time, I’ve been running this blog as an experiment in learning about cryptocurrencies, blockchain technology, and smart contracts. As such, I’ve been trying to refrain from making any serious recommendations on the subject until I felt like I understood it well enough to do so.
In the process of doing this, I’ve come up with a few basic rules of thumb for how to understand cryptoasset investing. The following is the distillation of my research into a set of simple principles which you can use to understand when it’s a good time to buy or sell a cryptoasset.
The rule I want you to take away is this: if you don’t know why you’re buying a cryptoasset, don’t buy it. If you don’t know why you’re selling a cryptoasset, don’t sell it. Cryptocurrency markets are volatile (they fluctuate in value rapidly), but the fundamentals of cryptocurrencies are very strong right now. The time for investment is now; there are many great cryptoassets available for purchase at bargain prices today, and there will not be tomorrow.
The price of Bitcoin has risen by over 600% in the last one year. This is not the first time. In 2013, Bitcoin rose from $13 to $1,000 before dropping back to $200.
In 2017, its price rose from $764 to over $19,000 at its current peak.
And now it stands at over $8,300.
It is hard to say what will happen next week or even tomorrow but one thing is certain: Cryptocurrencies are here to stay and you should buy them now.
Bitcoin is not the only cryptocurrency in town. There are other cryptocurrencies that have risen even higher than Bitcoin in the last one year.
Ethereum (ETH), for example, has risen by more than 5,000% in the last year alone!
When I was younger, there were two things that I wanted more than anything in the world. The first was a Lamborghini Countach. The second was a genius girlfriend.
I pursued the Lamborghini dream with vigor. I spent countless hours researching the car and the market, spent countless dollars on car magazines and model cars, spent countless energy studying which ones to buy and which ones to sell. I even had a recurring dream where I drove one down Route 66 with a beautiful woman sitting next to me.
The genius girlfriend dream did not get nearly as much effort. But it happened anyway. She’s sitting next to me now as I write this note – my wife of 14 years, who is also my partner at Foundation Capital, who is also one of the smartest people I know.
It turns out that when you find the right person, you don’t need to pursue them with vigor – they will pursue you. You just have to be willing to wait for the right one, and put yourself in a position where it can happen. It’s not that she found me – we found each other. It took us both being open and available to meet at the right moment in our lives for it to occur.
Right now cryptocurrencies are like that
Most people who get into crypto do it because they think the underlying technology is cool, or because they are intrigued by the investment potential. Rarely does someone go into crypto knowing that they will be able to spend it in the future. It’s important to know that there are currently about 90 million merchants worldwide who accept cryptocurrencies (according to payment processor BitPay).
Of course, most of these don’t actually realize that they accept cryptocurrencies. All of them accept Bitcoin, and many accept Litecoin, while a few also accept Dash, Ethereum or Bitcoin Cash. Most of these 90 million merchants are actually using a third party payment processor. These are companies like BitPay, Coinify or CoinGate which allow you to receive payments in cryptocurrency and then pay out in fiat currencies. These processors charge a fee of 1-2% on transactions, but they allow merchants to avoid price volatility and market risk.
So if you’re a merchant and you want to start accepting cryptocurrencies today, you just need to create an account with one of these payment processors. If you’re not a merchant, you can still use cryptocurrencies for online purchases in many places: Amazon accepts Bitcoin through Purse, Overstock accepts Bitcoin directly and dozens of other retailers accept cryptocurrency
If you are reading this, chances are you have a portfolio of stocks and bonds, and now you want to diversify it with cryptocurrencies. Or perhaps you have some savings and you want to try your hand at making money on cryptos. Either way, I will give you some reasons why this is the right time to buy them.
First of all, cryptos are not like stocks or bonds. They don’t pay dividends, they don’t have earnings, and they don’t pay interest. You buy a crypto only if you expect someone else to pay more for it later.
But that’s true of many things we buy – diamonds, real estate, art, cars … So why should cryptos be different? Cryptos are different because they are new, and people don’t yet understand them well enough. Some people think they are just a fad; others think they are the future of money. In my opinion they fall somewhere between the two: many of them will turn out to be useful in some way or another (as a means of payment or as a store of value), but most will probably disappear eventually as people figure out which ones are useful and which aren’t.
You may be wondering what makes cryptos worth anything at all if there is no