I still remember it like yesterday. It was the year 2014, and I was watching Bitcoin getting rekt because of Mt Gox. You see, Mt Gox was one of the largest Bitcoin exchange back then. It was shut down – unexpectedly – while destroying Bitcoin. It was a nightmare to watch Bitcoin dropping to $60.
Perhaps that is why I stopped looking into cryptocurrencies for a while.
But Bitcoin picked up after a couple of months. And then it crashed again. Picked up once again, and crashed again. In fact, throughout the Bitcoin history, you will find this pattern repeating.
It teaches you something profound though: that Bitcoin is here to stay. No matter how bad the crash is, it will continue to rise – and fall – and rise.
Embrace These Crashes
As of today, on February 5th (2018), Bitcoin is $8000. It touched $20,000 in the month of December last year. That is 60% drop in price within 3 months.
Worst part is, as Bitcoin dominance is 35%, it takes down altcoins with it. The entire cryptomarket suffers. In fact, over a $100 billion is out of the market cap.
Such crashes are, in fact, frequent. Yes, the market is volatile. And yes, Bitcoin is unpredictable. But do remember:
It is a gamble for many. And an oppurtunity for a few.
I found this tweet interesting as it reveals the worst crashes in Bitcoin’s history. It starts in the year 2011. And we are still noticing such massive crashes.
Yet, when you look at the biggest picture, Bitcoin has held up well in these years.
Quick Look Into These Major Bitcoin Crashes
The first biggest Bitcoin crash was in 2011. Bitcoin went down by 94% – from $32 to $2. Why? It was because of a hacker who managed to transfer a large chunk of Bitcoins from Mt. Gox to his own account.
Then there was a second Bitcoin crash in 2012. Bitcoins worth $228k were stolen from Linode – a webhosting provider. That month Bitcoin went down to $4.
Mt. Gox takes the credit for the next three crashes that happened between 2013 and 2014.
Then the next crash came three years later when China announced the death of ICOs causing Bitcoin to dip from $5000 to $3000.
And now, in the year 2018, we are seeing Bitcoin crashing from $19000 to $8000 for several reasons. First, it was because of this: South Korea banning cryptocurrency. Second, perhaps this: India killing bitcoin.
There are, of course, dozens of other reasons. Like how Warren Buffet said that cryptocurrencies “will come to a bad ending.”
Whatever the case is, we have seen this downtrend before. We have seen Bitcoin crashing and going back up again – hard. Your job is not to question Bitcoin’s existence. Or wonder if it’s a bubble. Your job, in the bear market, is to ask yourself this question:
So what if Bitcoin crashes?
If you can find the answer to this question, you are going to do fine.