Cryptocurrency Market is Crashing? Is This the Time For Investment?

If you want to invest in cryptocurrency, the general rule of thumb is to buy when the market is down. Until a week ago, Bitcoin was $43K, how it is down to $35K. Do you think people need to start buying Bitcoin if they have not invested already?

Just like Bitcoin, Ethereum is also down. The all-time high price for ETH was $46K. Do you think we need to buy Ethereum now because the price has gown down by 50 percent from its all-time high?

Bitcoin to $10K or $100K?

In November 2021, Bitcoin was $68K. When the price of Bitcoin reached an all-time high, people began to speculate that soon Bitcoin will become $100K. Some said that will happen by the end of 2021, whereas some speculated that it will take one more year. We found out how wrong they were when the price began to drop.

In December, the price of Bitcoin went even further down. After toying around $42K for a while, the price of Bitcoin had gone down to $35K. A similar thing happened in August 2021. In May, Bitcoin reached $64K but then it went down to $50K in June and even further down to $30K in August. When the price of Bitcoin fell below $30K people started saying the Bitcoin will go further down to $20k, some even said Bitcoin will become $10K

Let’s talk about Bitcoin price. What do you see happening with bitcoin. Do you think Bitcoin will go down to $10K or will start rising and reach $100K?

The Price Correlation Between Bitcoin and Altcoins

In early times, when altcoins were just getting popular, there was an interesting price correlation between bitcoin and altcoin. When bitcoin appreciated altcoin depreciated and when bitcoin depreciated, altcoins appreciated. That happened because you had to use bitcoin to buy altcoins and when you were spending bitcoin to buy altcoin, you were creating less demand for bitcoin but greater demand for the altcoin. We all know, the price of cryptocurrencies is heavily dependent on demand and supply.

However, these days there is a different kind of price correlation between bitcoin and altcoins. When bitcoin depreciates a lot of altcoins also depreciate and when bitcoin appreciates a lot of altcoins also appreciate.

What does this actually mean for the investors?

Well, you may not actually benefit much by investing in various currencies.

What’s the best thing you like about cryptocurrency?

Even though the crypto market is going downhill, I still like cryptocurrency, the moment I get hands-on some extra money, I start buying more crypto assets.

I started using cryptocurrency as a payment form and now I am using it as a digital asset. This is the best thing that I like about cryptocurrency. You can invest in a crypto asset and earn profits. When it comes to investing in crypto, even $1 can be a big money. For example, in January 2021, you could have bought 1 doge for 1 cent. Just by spending $1, you could have bought 100 doge coins. The current Dogecoin price is 15 cents. Your 100 dogecoin will be valued at $15, and you will be making a $143 profit. This is a big profit to be made even when the value of dogecoin has gown down by more than 300 percent.

These days a lot of people are talking about Shiba Inu.

Based on its current value, you can buy more than 3 million SHIB for just $10.  Imagine the worth of your SHIB when it becomes even 1 cent in 1-2 years.

Why are people interested in meme coins?

At the beginning of 2021, Dogecoin was less than a cent. Currently, it is 15 cents. Dogecoin was started as a joke. However, currently, DogeCoin enjoys backing up by influential figures like Elon Musk and the whole community of Reddit.

Of late, people are talking about Shib, which is a spinoff of DogeCoin. Just like Doge was started as a joke, Shib was also started as a “joke of the joke.” Even the price is still a fraction of a cent, shib ranks #29 on the cryptocurrency market rank. 

Then there are other tokens that do not have a real value yet (because they are not listed on crypto exchange platforms), for example, Pi Network, Bee Coin. Etc. There are some coins that are exclusive to the certain exchange only. There are also coins like Safemoon, Mooncoin, PancakeSwap, etc.

What surprises me is why are people so much interested in these new coins that do not have real market value or real use cases. Why are people interested in these coins when one decision from the government can make them illegal, just like the Chinese government did recently?

First published on Trendri, in author's name