Bitcoin Crash

This week Bitcoin crashed, a Turkish exchange CEO fled his country, and profit-taking triggered a sell-off.

.So if you spend more than 15 seconds looking at the news regarding Bitcoin’s price drop, you’ll realize that the headline is great for catching attention, but otherwise it lacks any real impact.

If you started getting your feet wet in crypto with Rockydennis Presents, you probably yawned at this being covered in the mainstream news. Especially if you’re on board with Betfury.

So what exactly happened? Or didn’t? The price of Bitcoin dropped under the $50,000 mark.

Okay, and?

Nope, that was it. Price came back to over $50k less than 12 hours later.

Bitcoin isn’t a commodity. It’s a currency with a maximum, finite quantity. Kind of like gold, but with a hard limit that will be achieved. The hard limit on gold is unknown and will never be reached. So really, more valuable than gold. Which is funny because you need gold in order to mine Bitcoin, but we’re getting off the point.

With 2020’s booming markets, stimulus checks, the popularity in trading crypto derivatives on Robinhood, WeBull, and eToro (I don’t have a link for eToro), and overall ignorance of how money works we had outrageous speculation that created an artificially high exchange-rate on Bitcoin. There’s other factors, as well. Bitcoin is a pretty big deal after all.

Now re: that Turkish crypto exchange, I have no clue why the dude fled the country. Probably because Turkey sucks and they understand crypto even less than the average 1st world citizen. Their entire country probably spontaneously combusted and are calling for him to be sacrificed to one of their many backwards baby-eating gods. Also, probably lots of people got or will be getting screwed. This is why you don’t keep your crypto on exchange wallets.

“But Rocky!” you say, “If the Bitcoin bubble is popping, why is the price back to normal? And why is RIOT under $40?”

First, BUY MORE RIOT! Under $40 is a steal. And remember they do more than just mine Bitcoin (though its investment in miners has definitely paid off).

Secondly, Bitcoin’s price WOULD be lower, except that the USD’s value is dropping like a rock. As each dollar is worth less, each Bitcoin will be worth more dollars. The British pound is also getting more expensive. I can’t speak too much on Forex stuff, but I suspect you can exchange some USD to GBP as a hedge against inflation, at least in the short-term.

That’s really all there is to it, and all the other tidbits that got peppered in. There’s probably more actual information in this article than in any of the news spots about BTC this week.

TLDR

Bitcoin hasn’t changed. Speculative trading has dropped off while the USD loses value.

Don’t treat Bitcoin like a commodity and you’ll be just fine.

Keep your currency in a wallet, not on an Exchange.

(Unless it’s Coinbase . Your money is protected, but subject to regulation.)