I have now been invested in Crypto for almost a month. It has been quite the ride so far. Just last week I was up over 50% in my Wealthsimple account and I was up over 40% in my Coinbase account. I was up in my Newton account as well but I decided to consolidate and transferred my crypto to my Coinbase account. You wouldn’t believe the hoops I had to jump through just to get this all done. Thank god I created a Coinbase wallet in order to make the transition way more easy. The only thing is that the whole process wasn’t easy. I had to verify my identity every single time with every account I opened, it seemed like a little much if you ask me. Although I get it, its somewhat like investing in stocks in that sense except when it comes to crypto your account is opened immediately after.
Much like the Dot Com bubble though this has caused and created a flood into the crypto market. During the Dot Com bubble people were throwing money at any and all internet/technology companies. No one knew their name or what they did because all that mattered was that you were going to make a quick buck off of rising prices. The same is going on in the crypto market right now. There are over 5,000 different cryptos/tokens right now with more and more being created every day. People are throwing money at coins/tokens that don’t have any backing or are LITERALLY just a meme. Its somewhat turning the sector into a big joke.
Well, finally this week I feel like that bubble has gotten way to big and has officially burst. Prices are plummeting right now as I type this and alot of people are losing alot of money. Some “experts” have been calling for this bubble burst for a long time much like they were calling for the Dot Com bubble burst before that happened. It was really only a matter of time before RocketBunny(BUNNY), CatzCoin(CATZ), SpaceCorgi(SCORGI), MILFToken(MILF) or MoonJuice(MOJO) came crashing back down to earth. I would honestly not be surprised if the majority of the coins/tokens out there right now just disappeared and we never heard of them again leaving only a digital handful of coins/tokens left in the market.
I personally believe that only the big ones are going to still be around in the long term which would include Bitcoin(BTC), Ethereum(ETH), Cardano(ADA), Polygon(MATIC) and Stellar Lumens(XLM). I know that there will be more but these are some of the biggest so far with the most stability and use. I’m not saying that everyone else will be gone but I would say that probably the majority of them will disappear. That is one reason why I have taken positions in a few of the bigger ones. I also feel like with the bigger coins their platform and basis is real and used with purpose. I plan on holding my positions for the long term and riding out this big drop that has started to occur. I also do plan on adding to my positions as we go through this big drop but only small amounts as I plan to continue to also add to my stock portfolio. Its like Colby always says “invest in the biggest because they are the biggest for a reason”. He likes to remind me of that fairly often which I think goes a long way with investing.
At the end of the day though its pretty easy to compare this to any other bubble. Whether its the Dot Com bubble from 2000, the housing market bubble in 2008/2009 or the oil price hike in 1990-1991 there will always be volatile markets and even bubbles. Who knows what the next one will be but I think that the crypto markets will come back from this and react just like all the others. How far down will everything go? I have no idea, maybe you could ask the Winkelvoss twins what their opinion is on this situation. I know that I have already sent them a tweet asking their opinion but I haven’t gotten a reply yet(fingers crossed). At this point in time I am just along for the ride and eager to learn everything I can about what is happening or going on in the market and you should be as well.
That is all for today and remember everyone, invest in yourself first.
*Disclaimer, I currently hold positions in Ethereum, Ripple, Cardano and Stellar Lumens.