Move over stock market, cryptocurrencies will make all the noise pretty soon
Photo by Adeolu Eletu on Unsplash
Cryptocurrencies have been on a tear in 2020 as the stock market took a big dump in March. I am still invested in the stock market but haven’t added a lot of money to these accounts in three-plus years. Most of my money has been going to cryptocurrencies. Now you may be thinking why did I do this?
I will say I’m not an expert investor but know a thing or two about the markets. Since the 2008 stock market crash, stocks were on a tear and had a few dips since then. So eventually a crash was coming one of these days. A big crash happens about every seven or eight years. So we were long overdue. Also, many stocks were hitting new highs and they were getting too expensive for my taste. Nothing goes up forever including investments. They all take a break every now and then.
When I’m not with my family or writing, I spend a lot of time reviewing my investments. I have a bad habit of checking to see how much ABC investment went up or down today.
Overall, I have been in a good mood. Cryptocurrencies are finally showing some life. After the 2017 cryptocurrency bull run or when Bitcoin hit a new high, many investors lost or made money as Bitcoin crashed hard in 2018. Cryptocurrency YouTube channels and Instagram pages went quiet. Many wannabe investors left this market since they couldn’t handle the coming crash.
If you want to make money in the markets, this was the time to buy cryptocurrencies. When everyone is screaming and your friends are asking where are the cryptocurrency people, that is the time you should be investing. People didn’t want to talk about cryptocurrencies openly since the market was getting bad press from the media, FaceBook banned cryptocurrency advertisements, cryptocurrency scandals such as BitConnect were emerging, and the government was cracking down on fake cryptocurrencies.
For those still investing in the market, you could have compared this to a fire sale at a store. All the expensive products were literally going on sale at the same time. That’s how the cryptocurrency market was. Bitcoin fell over 300% and many cryptocurrencies were cheap. Stock prices on the other hand kept going up.
As an investor, you have to be the oddball in the group. When everyone is selling, you should be buying. Just compare this to what Warren Buffett or his company Berkshire Hathaway has been buying lately. He was holding on to $130 billion in cash and finally started to buy shares of Barrick Gold this year. Buffett also added Suncor Energy, Store Capital, and Kroger, some defensive stocks in this coronavirus market.
When the stock market is getting all the attention even at high stock prices, cryptocurrencies were on sale for the past three years. Jumping in now is still possible but don’t expect to see Bitcoin at the $4000 price range where it was this spring. Bitcoin is sitting at $12,203 as of this writing.
The cryptocurrency market is feeding off the doom and gloom in the economy. Bitcoin was created in response to the government and excessive federal spending. Some believe Buffett’s entry into gold as another benefit for Bitcoin. Gold is a hedge when the economy is showing signs of weakness. Bitcoin is following along with these economic changes.
Are you ready to get into the cryptocurrency market?