Cryptocurrency: Falling Knife or Buying Opportunity?

Let’s discuss the current state of cryptocurrency, what’s at cause, the regulations moving forward, and whether or not this could potentially continue dropping or be the ideal buying opportunity. Enjoy! Add me on Snapchat/Instagram: GPStephan

And as always, I’m primarily a real estate and investing channel and I intend to keep it that way - but I believe much of this ties into investing, wealth building, and investor psychology. So even though I’ll make crypto videos every now and then, especially because I’m invested in it and find it super interesting, it’s not going to be very often unless I feel like there’s something worth mentioning, and today there is.

Let’s first start with one of the more subtle points that many of us can relate to…people are getting impatient and the growth we previously saw was largely unsustainable. As much as we need it, the WORST thing for cryptocurrency from this standpoint is stability. Stability is boring. Stability isn’t exciting. Stability doesn’t get people talking about it. If people aren’t talking about it, it has a hard time attracting new money - and investors get bored. So what do many of them do? Cash out and look for other opportunities. And what caused this…from my perspective, was lack of utility for the price it was formerly trading at.

The next, and probably the most impactful is the legal uncertainty surrounding cryptocurrency lately. In a speculative market like this, the slightest chance of regulation sends many investors into a state of panic. However, the significance this poses is fear - fear that if one market bans or regulates cryptocurrency, it sets a precedent for others to follow.

The failing of Bitconnect and other similar coins. This, by itself, isn’t a cause of the recent price drop but more so a symptom of what’s currently allowed and what we can expect to see more of in an unregulated market - which, to me, doesn’t seem sustainable. This leaves me thinking, how long until government steps in to save us from ourselves?

With the push to regulate these markets comes the requirement for exchanges to verify its users in order to withdraw or move funds, especially in high dollar amounts. It puts many exchanges between a rock and a hard place of operations…again, this isn’t a cause of the recent drop, but a symptom of the current state of the market and the growing pains of legitimizing cryptocurrency. And frankly, I think this is a good sign - this means that cryptocurrency is being taken seriously, it means that the bad apples will be weeded out, and the legitimate coins will have more room to grow.

Lastly, I think we’re seeing the appeal of Bitcoin slowly dwindle as Ethereum takes over from a practicality a day-to-day use standpoint.

So with that said, here’s what this means from my perspective. Even though prices have been depressed, I think this is largely a move in the right direction for cryptocurrency in the LONG TERM. You can’t have shit coins going up 100x in value and millionaires consistently being made overnight. You can’t have people promoting pyramid schemes and profiting without legal repercussions when it fails. You can’t have exchange owners picking up and running away with millions. You can’t have some random people creating their own ICO’s and then cashing out at its peak. And short term investors only in for the quick profit won’t be able to forever turn a profit consistently without losing money at some point.

Realistically, we should care what the prices are a YEAR from now…not what the prices will be like next week. So basically…if the market drops, don’t panic. Let’s not forget that a year ago, Bitcoin was $1000…while past performance doesn’t indicate future results, it does give us perspective to take a step back and realize that in any market, patience is a key takeaway. And just as a reminder, I have no idea what I’m talking about - this is just a total guess on my end - and obviously for entertainment value ONLY ;)

Earn a FREE stock with Robinhood:

For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness@gmail.com

(Do not send me random questions here - the youtube comments are best. This email is for business or paid real estate coaching inquiries ONLY)

Suggested reading:

The Millionaire Real Estate Agent

Your money or your life

The Millionaire Real Estate Investor

How to Win Friends and Influence People

Think and grow rich

Awaken the giant within

The Book on Rental Property Investing

Favorite Credit Cards:

Chase Sapphire Reserve

American Express Platinum