DOW vs. crypto: time to buy yet? 🏁
In my humble opinion...
what matters most takes time.
2/ The opportunity to participate in a tech revolution and the birth of a new asset class is intellectually fascinating. We're defining new valuation models and debating "what is money" as we go.
— Ari Paul (@AriDavidPaul) February 3, 2018
Coin of the Day Staying organized can save your money.
We are here for moral support: yes, the market looks pretty bad (the DOW looks way worse, believe it or not). It's probably going to get a little worse. But it's not over...and it's time to take a long-term view.
We want to give you a hug after you've looked at your portfolio. While some outlets say the price floor is as low as $5,000, our own sources say it may hit $2,000 before bouncing back. Sorry. Yes, you're probably down 300% from 2017. So are we. The market dip is pretty freakin' bad, and is mimicking 2014's dip; the whole market is down 65% since December amidst reports of China going nuclear on crypto. All access to international crypto exchanges are now banned and the government is using the Great Firewall to block anyone within the country from viewing anything crypto-related (ICOs, exchanges, advertisements, etc.) We want to remind you that this isn't stopping Chinese traders from finding alternative methods of getting their token fix – they'll just be lying low in the interim.
Also yes, you read that right, the DOW is actually performing much worse than Bitcoin right now. Crazy, right? Mainstream media doesn't want to call it a stock market crash (even though falling over 1,000 points for the first time in history definitely qualifies as something), but things are still looking up around the world. Italy has outlined the rules that crypto-based businesses have to be established under and how they report their earnings (that's a win). Bittrex is adding requirements for new users that'll help onboard informed investors and is incorporating the very sexy allure of USD trading. Things are looking up, believe it or not.
Even though the FUD is real, institutional investors have a longer-term bullish view of the industry and are putting some real money in. Yes, you read that right.
You may recall that little price prediction that may have momentarily helped the market – former Facebook product manager Anthony Pompliano, said Bitcoin will hit $50,000 in 2018. He now works at Full Tilt Capital, where they're putting their next $25 million into crypto. He reminded Business Insider that market swings happen much faster based on international news. Uphold's chief revenue officer is bullish on both crypto and blockchain because the tech justifies the use of tokens and actually proves their value. Also, this may be a news flash, but true Bitcoin/altcoin hodlers are loving FUD the internet and investors are showing.
Call me crazy, but these bear markets are becoming my favorite part. Watching adults bicker and yell at each other in a panic out of fear and insecurity while the HODLers, builders, believers and doers lock arms and continue to push for the greater vision. It’s a beautiful thing.
— Jack Mallers (@JackMallers) February 6, 2018
You now: "I'm selling everything on the next big bounce, fuck this shit, it's going to 1000."
You at 13000 in 3 weeks: "50K BABY, SELL THE HOUSE, SELL THE KIDS, BUY THAT BITCOIN"
— Jeremy Ross (@jebus911) February 6, 2018
If you're still feeling down, know this: Asia's not giving up on crypto anytime soon, and they make up a large part of the market. Peach Aviation, a low-cost Japanese airline, is still working on a Bitcoin payment option (awesome) and Singapore Airlines is launching the first blockchain loyalty app within their industry. Please ignore clickbait-y articles such as "Banks, Retailers, China Have All Turned On Bitcoin," because it's flat-out, not true (there are a lot of banks that love crypto/blockchain, and retailers are just getting started with Bitcoin).
Here are some leading conspiracy theories for your morning coffee:
- The banks and financial institutions are crashing the crypto market to make their buying prices lower and profiting on Bitcoin shorts in the futures market. We've heard stranger things.
- North Korea may be responsible for the Coincheck hack – it wouldn't surprise us, as they stole over a million dollars in tokens in 2017. Why the fuss, Kim?
ICYMI: TD Ameritrade advertised it's Bitcoin Futures contracts in a Superbowl commercial yesterday. It's not directly referenced, but it's enough to get people excited.
Quick reminder: yes, you can't buy crypto with the majority of American credit cards, but you also can't buy stocks, bonds, or mutual funds with a line of credit. So, calm the heck down.
Here's an interesting perspective: "Governments Hate Bitcoin and Cash for the Same Reason: They Protect People's Privacy."
Coin to Watch
ICON (ICX), the Korean ETH, is something we're looking at in this down market. South Korea is a crypto force to be reckoned with and worth keeping an eye on for the future.