A lot of people have given up on bitcoin because of the enduring price decline of the asset and the media makes it worse by broadcasting its death which it has done for over seven years anyway. Even people on Wall Street have predicted bitcoin’s death many times and are only waiting for the final crash for them to be proved right.
This is what Jim Cramer, host of CNBC’s Mad Money said and it’s just an example of what people say about bitcoin and even worse.
“I think the tide has turned against it. I’m not saying its time has passed, but there is a notion that the sun seems to be setting.”
However, this is not the first time bitcoin has experienced a drastic fall in its price. For instance in 2011, bitcoin lost more than 50% of its value from $29 to $14 in just three days, which must have caused a major panic in the market which is not surprising considering the recent events.
However, the asset later grew to a peak of ~$20,000 by the end of 2017 before the nearly consistent decline that has affected the asset since the beginning of this year. People quickly forget that cryptocurrencies and in fact every other financial asset experiences fluctuations in its value, some recover while others do not. Yes, the asset has lost 55% of its value this year but that was in a period of over 8 months. What is that compared to 52% decline in 72 hours?
Many if not most investors have sold off their digital assets because their understanding of the market is, you only jump on the bandwagon when it’s going uphill. The problem with this is that you may miss the wagon and end up walking uphill. You don’t want that!
However, some persons have demonstrated their understanding of the market by their decision to “jump on the bandwagon” on its way down so that it will go uphill with them safely in it.
Marc Andreessen and Ben Horowitz, the owners of Andreessen Horowitz, an American venture capital firm, have seen an opportunity where most have perceived danger. In fact, they went as far as launching a crpto fund just two months ago in the face of the decline.
A recent study revealed most American adults believe it is too late to invest in bitcoin. Although that is partially true, it is not entirely late as there is still an opportunity to do so with Andreessen and Horowitz while the price is still low. You will not be able to catch the train when it leaves the station.
And, not just bitcoin, as other cryptocurrencies slumped with it, so will they rise WHEN bitcoin rises. There have been predictions of its fall which have come true, but there are also predictions of its rise which will come to pass.