The Bitcoin Altcoin Drop (November 2018) Should We Be Worried?
Hello eCheck.org fans. I keep looking online for other people’s theories on why Bitcoin has dropped dramatically over the last month (November 2018) from the $6000 region to the $3000 region, and what worries me is that nobody else is telling the truth about why it has dropped. Maybe they do not know the truth, or maybe they are hiding it, I am not sure.
Sadly, despite being on a very popular website, this page itself typically ranks very low on Google’s search engine results pages because it has a lot of stiff competition (Bitcoin is a hot issue). Nevertheless, if you are lucky enough to have found this page, here is a simple explanation as to why Bitcoin has dropped in value so dramatically in November 2018.
What The Fork?
As you are probably aware, there has been a fork in Bitcoin cash where the blockchain has been split into two: BCH ABC is in one corner, and BCH SV is in the other. The two sides are fighting for dominance and it is costing them a lot of money. Their financing is coming primarily from their stocks of bitcoin, which they have recently been selling in bulk. This is what drove the initial drop in price, and their bulky sell-offs have driven subsequent dirty-drops in the price of bitcoin.
The reason it has not bounced back is because confidence in cryptocurrency as a whole has been damaged thanks to the big drop in January 2018. Confidence was rising again thanks to the calm and steady bitcoin price during the last few months, but we are now in November and people are feeling nervous again because of this sudden price drop. People are unwilling to invest in cryptocurrency because of the bitcoin drop, and because the bitcoin drop seems to have dragged most cryptocurrencies down with it.
Another reason why bitcoin has not bounced right back up to $6000 is because of regular investors selling off their stocks of bitcoin. A great many people had low-priced sell-orders on their stocks of bitcoin as a safety net. This resulted in another great bitcoin selloff when the price suddenly went from $6300 to $3700. Many people’s sell orders were enacted, which continued to drive the price of bitcoin down.
Then, there are the people who have seen the bitcoin drop, they have read all the articles and Reddit posts about “The End Of Bitcoin” and they too have sold off their stocks of bitcoin because in their mind, “They would rather lose a dime than a dollar. ”
The lack of confidence in cryptocurrency at the moment is going to have a positive effect on altcoins because it is going to make it harder for future altcoin pump-and-dump schemes to work. Plus, it will clear away most of the useless and/or silly altcoins and will subsequently leave the good/useful ones intact.
Will bitcoin rise again? Yes, it will rise again, but now you have the tricky task of figuring out when it will rise again. Logic suggests that when one of the Bitcoin Cash fork sides prevails (BCH ABC or BCH SV), then either side will have no need for quick cash and so will stop selling off their bitcoin in bulk. This will allow the price of bitcoin to recover. How long it will take for one to prevail over the other is not clear, but that will mark the end of the extreme-low turbulence.
Lucky for bitcoin and altcoin investors, most of the nervous investors have already sold off their bitcoin, so they will not harm bitcoin’s price recovery. Plus, all the people who had sell-orders on exchanges will have already been triggered and will have already sold their bitcoin, so they will not hinder bitcoin’s recovery again.
People will soon remember that bitcoin (and many altcoins) are permanent members of the financial world, and their confidence will begin to grow again, which will accelerate bitcoin’s price recovery. For the moment, all we can do is watch the bitcoin Cash fiasco and wait for them to stop dumping their stocks of bitcoin for cheap prices.
In short, bitcoin and most altcoins will recover.
Below is an article I wrote in 2017. I am piggybacking this article on this 2017 article. Have a read if you wish. It shows the confidence that I had in cryptocurrency in 2017, which is the same confidence I still maintain today.
The Altcoin Drop (December 22nd 2017) Should We Be Worried?
I have written about bitcoin and altcoins in the past, and I am happy to say that I massively underestimated how much bitcoin would rise. Today, on the 22nd of December 2017, we have just seen a massive drop in the price/value of bitcoin and the value of almost all the altcoins. People are panicking and there are theories flying around the Internet like bullets in scrapyard. I am thrilled about the 2017 altcoin drop.
Should You Be Worried About The 2017 Altcoin Drop?
Is the 2017 altcoin drop something to worry about? Not at all, you should be thrilled. Do what I am doing and take this time to invest even more in altcoin. Firstly, let me start by showing you how all of the altcoins I have invested in have taken a nosedive this morning. Take a look at that stats on the altcoins I have invested in. There is more red than a communist birthday party.
As you can see, it is not a good day for my altcoin investments. There are drops of up to 40%. Yet, despite the fact that the value of my altcoin investments has been slashed, please take a look at this conversation I had with somebody on ForexLive this morning.
Stop panicking. Bitcoin and altcoin serves a need, which means it is not going anywhere. The only direction that bitcoin and altcoin can go at the moment is up. We are going to see drops from time to time, but that is natural. Instead of panicking, take advantage of the low prices and start buying.