Bitcoins Value Drops but No Need to Panic
It has happened again, the value of Bitcoin has taken something of a tumble to below the $9000 mark, however a quick glance at the cryptocurrency markets shows that 18 of the top 20 cryptocurrencies by market value have also taken a drop in the last 24 hours.
But one thing that experience may have already taught you if you do hold any amount of Bitcoin is that when its value does drop, there is never a need to panic, and one thing you should never set about doing when it does so is selling your holdings!
At the end of the day it is worth remembering that there is only ever going to be a set number of Bitcoin eventually, and when you factor into that amount the number of Bitcoin that have been lost over the years, as long as there is a demand for that cryptocurrency, then its value is going to rise again, and probably quite soon too.
Due to Bitcoin now being worth less that $9000, you will also start to see all manner of doom and gloom articles in the media proclaiming doom and gloom and giving all manner of outrageous reasons as to why its value has dropped.
However, set aside in your mind anything that you may read, for it is the usual FUD being spread by those who haven’t a clue how Bitcoin works, or those who are very eager for you to invest in a range of different cryptocurrencies!
Now Maybe the Time to Buy Bitcoin
There are of course many people who do look forward those the value of Bitcoin dropping, some of those people will be people who have bet on its value dropping via for example when using the services of a forex broker.
When using any of the many different forex brokers websites that are available online, you can pair up any two fiat or digital currencies and place for all intents and purposes a bet on which cryptocurrency of that paring you think will drop in value against the other.
If your prediction is correct, then you bet is a winning one and you are paid out at the odds offered by the forex broker.
However, there are other people that do look forward to the value of Bitcoin dropping, and that is those people who are eager to but into Bitcoin, and therefore want the price to be as low as possible when they do so.
As such, if you have been thinking about buying into Bitcoin but have been put off in the past due to the high value of that cryptocurrency, then now may be an ideal time to buy into it, even though the value of Bitcoin may fall a little more, it is always the case that its value will rise again, and that is something that I am fairly confident will happen in the days or weeks ahead, the amount of that rise however, no one can predict!
Trading Bots Cannot Predict Rises and Falls
Many companies that have some form of trading bot for sale will also be very eager to take advantage of the drop in the value of any cryptocurrencies and will often use the drops in the value of say Bitcoin as a way of promoting their trading bots.
A trading bot if you have never come across one before is a simply a piece of software that you download that is going to allow you to set that software to place trades on the value of in this case cryptocurrencies either rising and falling in value.
But keep in mind that when it comes to cryptocurrency or fiat currency trading bots I have yet to come across any that can accurately predict the rise or fall in value of any cryptocurrencies or fiat currencies consistently and accurately.
In fact, as there is a 50% chance of correctly predicting the rise in value of Bitcoin for example at any time of the night or day, a trading bot will, due to the law of averages, correctly predict that rise, but the other 50% of the time it will predict a rise when a fall occurs.
So, it is as times like these when there is some volatility in the cryptocurrency markets that you should avoid being tempted to purchase a trading bot, for you are just as likely to be able to predict the rise and falls of any cryptocurrency values as a trading bot will.