“Goodbye crypto”, “[Insert name of coin here] is such a *hitcoin!”, “It’s all manipulated, no one can win at this game!”, “It will rise when the whales want it to rise and not before!”
A couple of months ago we did an article about crypto investors DYOR (DOING YOUR OWN RESEARCH), go on, take a look, it’s a good read. Yet, the rumour mills and usual soundbites keep rearing their ugly heads. Sign.
Please shut up with your soundbites.
If you are familiar with eToro, you’ll know it bills itself as a social trading platform and y’know what? It has been good over the years, but oh my god, crypto, or more to the point, eToro’s targeted advertising has really brought in sum swamp life, mini Wolf of Wall Street wannabes and, errr… people with bipolar. Although, I’m still not set on if it’s the ups and downs of cryptos that are making people bipolar, or, does crypto trading just attract people with bipolar?
Either way, the discussion walls are just fall of *hit – on the crypto walls, at least. Those still wanging on about XRP being added to Coinbase (LOL) and the naysayers, full of irrational doom and gloom.
Crypto-currencies are going nowhere – NOWHERE
No, it’s not manipulation on a grand scale, although, of course, in a non-regulated industry, of course there’s going to be abuse, where there’s money to be made. Then again, there’s manipulation in the markets that ARE regulated too!
The stupid *hit people say (and how we debunk them)
“Cryptos are manipulated and it’s now dead!”
IF this was the case, then the “whales” must be incredibly stupid. You know how many Americans don’t hold any crypto? 90%! Yeah, just 10% of Americans have any crypto. (Bloomberg ref).
So, ask yourself this – if you were one of these “whales”, would you seriously be bringing the game to a close right now? No, of course not.
“It’s over. Game over!”
To answer this, well, we need to look at the real, potential reasons for the decline;
IRS clamp down (Coinbase). Earlier in the year, Coinbase made people aware that the IRS asked them to hand over the details of all American citizens trading on Coinbase for the past few years. Ouch.
Imagine this. You started trading Bitcoin on Coinbase a few years back, you made some profits each year and said profits have been spent, numerous times over. To this day, you still have Bitcoin on Coinbase, but you’ve just reaslised that those profits you’ve taken since 2015 now need tax paying on, but wait, you’ve already spent it!
The above scenario, is sadly, how a lot of Americans are currently finding themselves – in a place nowhere to hide, thus, selling off Bitcoin to now pay for some hefty tax bills.
ANOTHER reason for the turbulence and bearish downtrend is the fact that of a big off sell;
“Over the past three months, Nobuaki Kobayashi has sold over $300 mln in Bitcoin on two public exchanges. Some critics believe Kobayashi’s sales put so many Bitcoin back into circulation, that the sales contributed to severe drops in the price of Bitcoin. Bitcoin has declined 51.6 percent since its Dec. 17 peak of almost $20,000, and it is suspected that Kobayashi was a significant factor in the decline.” And there’s more to come! OUCH #2! (ref).
Lastly, but not least – G20 (worldwide regulation).
The G20 meeting, week commencing the 19th March, 2018, world leaders will discuss the impact of crypto on their individual countries and how they can combat a market, that they see just as much as a threat, as they do a positive.
Again, ask yourself this. If you had millions, if not billions in crypto – wouldn’t you be cautious right now about having money in cryptos? I know I would.
No, we do not believe the G20 is going to try and finish crypto-currencies off. The very opposite in fact. All they are wanting is their slice of the pie. For those thinking you’re investing and buying/selling via any “privacy coins”, ha, think again. There’s no wriggling out of global regulation.
This huge dip is NOTHING to do with manipulation, but has everything to do with people AND companies taking in to account and being cautious to risk. ONCE, hopefully, the G20 sorts out global regulation on crypto (we may not hear or start seeing the true extent of this until next year (2019), it is only when this risk is out of the way, when we will start to see recovery… and who know how quick that will come. One thing for sure is – right now, through regulation, fraudsters and other dirty money is going to flow less freely, making way for clean(er) trading hands – so be thankful that the majority of the globe is still to trade crypto!
Disclaimer; the writer of this article is an investor in cryptocurrencies, having held, or currently holding the following: Ethereum, Bitcoin, Tron, XRP, Electroneum, IOTA & others. Every effort has been made to ensure that the information provided is accurate. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs.