So since Bitcoin was started after the 2008 economic recession, it has gone up in value exponentially for over 10 years.
However, while crypto has had many falls in the past, I worry that past performance may not be an indicator of future long term performance this time.
We are learning that crypto is heavily influenced by markets when it was meant to be an independent store of value.
Unlike previous years, there have been some very unprecedented events this year:
- Complete crash of Terra and Luna
- Russia's invasion of Ukraine
- Rising inflation
- Rising cost of electricity for crypto mining
- Signs that the U.S economy may be hit by another recession not seen since the 2008 crisis.
- Announcements of new crypto regulations by governments.
- Celcius a major crypto lending company halting crypto transactions.
If the U.S experiences a repeat of 2008 crisis or close to it, crypto like bitcoin could fall to zero or eventually recover but at a much lower top price.
What do you guys think? Is it a good idea to buy bitcoin and hold for 3 to 5 years, or this a sign of the bubble bursting and potential death sentence for crypto?
However, while crypto has had many falls in the past, I worry that past performance may not be an indicator of future long term performance this time.
We are learning that crypto is heavily influenced by markets when it was meant to be an independent store of value.
Unlike previous years, there have been some very unprecedented events this year:
- Complete crash of Terra and Luna
- Russia's invasion of Ukraine
- Rising inflation
- Rising cost of electricity for crypto mining
- Signs that the U.S economy may be hit by another recession not seen since the 2008 crisis.
- Announcements of new crypto regulations by governments.
- Celcius a major crypto lending company halting crypto transactions.
If the U.S experiences a repeat of 2008 crisis or close to it, crypto like bitcoin could fall to zero or eventually recover but at a much lower top price.
What do you guys think? Is it a good idea to buy bitcoin and hold for 3 to 5 years, or this a sign of the bubble bursting and potential death sentence for crypto?
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