Why Are We In Cryptocurrencies?

in LeoFinance4 months ago

With the great storm that seems to be falling on the price of Bitcoin and the entire altcoin market at the moment, I think that one of the things that we mu st be very clear about is why we decided to remain in this world of cryptocurrencies.

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A little context

We all know that we are already in 2024, nothing more and nothing less than the year of the Bitcoin halving, which occurs every 4 years, where the production of Bitcoin Blocks is reduced by half. All this makes it more scarce and tends to increase its value over time. To the positive reading that this event may imply, there is also negative news that is that the Bitcoin ETFs were approved and that because of that, Wall Street has managed to put its tentacles in the main cryptocurrency on the market.

All of this has strong connotations and consequences, while institutions such as the SEC and the FED fight to restrict any type of benefit that BTC and cryptocurrencies in general may represent. Certainly, although neither Wall Street nor the US government will ever be able to destroy or stop the advance of Bitcoin, the truth is that so many things they do, that affect or delay the progress of cryptocurrencies in the global contet.

I emphasize that there is no way to destroy Bitcoin as a technology or as a means of payment, but it is undeniable that the fluctuations in the price of the main cryptocurrency on the market are losing many people's minds. I say this because I see many people exiting their Bitcoin holdings, and staying with fiat money, for fear of losing their capital. And in any year, but especially in the year of the halving, that is a brutal mistake.

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How do we know that people are selling all their Bitcoin?

It is something very easy, we know this because, by the law of supply and demand, we know that the price of a speculative asset always falls when there is greater supply than demand. So, if the price of Bitcoin is falling, it is because there are many people selling all the Bitcoin they own.

And to explain it better, let's be more specific. There are people putting their Bitcoin up for sale at low prices, and when they can't find anyone to buy all their holdings, they then put the price of Bitcoin at increasingly lower levels; thereby managing to liquidate all the Bitcoin they have in their portfolios. This is why we are seeing such a steep downward spiral in the price of Bitcoin.

The rest is anecdotal, because the rest of the cryptocurrencies whose prices are also falling is because they are subject in some way to the dominance of Bitcoin. Because it is a proven fact that the price of almost all cryptocurrencies on the market will move based on what the price of BTC will do.

Ohh, but the matter is much more complex and the situation is much worse than that, because we know very well that when it comes to the price of Bitcoin, the rises and falls always occur at the hands of whales. Because in a highly liquid market like the Bitcoin market, speculation is key, and the biggest speculators are all those who own the most BTC.

So it is the whales who, with their desire to convert to obtain greater liquidity minute by minute and second by second, make the price of Bitcoin and the entire crypto market always so volatile. So, we need to get that liquidity and volatility are two factors that almost always go hand in hand in the economy, and the crypto market is no exception to the rule.

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Our actions and our future will depend on the clarity we have

Now, I always say that having an investment portfolio in any field is serious, and in the cryptographic field it could not be less. Therefore, to all the people who want to stay in cryptocurrencies and who at some point have thought about getting rich thanks to it; I tell you that there is no way to achieve this if we do not remain clear, motivated and alert about everything that is happening and about what BTC and cryptocurrencies represent for the world.

Clarity is born from light, and the light is in knowing why we do what we do. Because whoever does something without knowing very well why he does it is nothing more than a fool, and I don't think that you or I are fools, dear reader.

That is why asking ourselves the reasons why we choose to believe in cryptocurrencies, despite the despites, despite almost any adverse scenario, is a legitimate question. And the answer we have to this question it will be what will allow us to remain firm, without losing our nerve in the face of everything that is happening and may happen in the crypto market. Since our future economic success will certainly depend on this, so it is certainly not a trivial matter.

Now, in my opinion, the fundamental reasons why we should stay in cryptocurrencies are the following:

  1. Cryptocurrencies are the future of humanity, both as a technology and as a means of payment. Since it is a fact that fiat money has its days numbered.

  2. Bitcoin will rise in price at any time, and will most likely reach a new maximum price in this year 2024.

  3. Despite the apparently adverse scenario in the crypto market, Bitcoin is the best cryptocurrency and as it is the most liquid and dominant, its volatility will lead it to rise soon.

  4. The scarcity factor, due to the halving issue that I previously mentioned, will cause BTC to increase its price due to supply and demand, that is, due to the speculative factor.

  5. As the price of Bitcoin rises, the price of most cryptocurrencies on the market will also increase, which will most likely uncover the alt season.

  6. Despite the current bearish scenario, more and more people and institutions are joining in to invest in BTC.

  7. Due to the volatility and highly speculative nature, Bitcoin and the most serious altcoins on the market are a perfect means to obtain good annual returns.

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So I don't know about you, dear reader, but at least I am in the world of cryptocurrencies because I am clear about it. That is, for all the reasons I just mentioned and many more and because I choose to believe in cryptocurrencies. Because I know that in the future, cryptocurrencies will not be something optional, but rather they will be the means that will make all things better in the world. They will be the mean that will allow us to obtain more and more wealth, protecting our assets and our purchasing power againts the intrusive hands of governments, banks and anyone who wants to get their hands on what is ours.

Therefore, I'm in cryptocurrencies because I know they mean the future of economic freedom. But if you believe that BTC is going to be worth $0, then sell all your BTC and don't buy back, due it is clear that you do not understand the crypto market or what is happening in it. I recommend that you see the Bitcoin chart, but do not do it in low time frames, do it in the maximum possible time frame, monthly.

As we well know, the monthly temporality graph of any asset is what foresee its behavior in terms of years. In the case of Bitcoin, if we analyze it, we will realize that since its creation, the price has only risen constantly. Now, has it been a rise with constant fluctuations? Of course, as it could not be otherwise, but if we see it in the global context, in the long term, Bitcoin has only been rising in price, and everything seems to indicate that it will continue to do so increasingly in the future. So can't lose our minds with all downward fluctuations.

Of course, I am talking here only about those of us who buy Bitcoin in the Spot market. And even so, we must have a strategy and understand that in this context, whoever loses with Bitcoin is only because, due to lack of personal liquidity or fear, they sell all their assets. As for me, I will continue to hold for as long as necessary.

What do you think about the topic discussed? Please comment.

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