Ignore The Current Sell-Offs: Here is Why You Should Hold on to Your Precious Bitcoin

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Ignore The Current Sell-Offs: Here is Why You Should Hold on to Your Precious Bitcoin

The reports of the repeated crash in bitcoin’s price has dominated the news in 2018. The price of the foremost cryptocurrency has fallen nearly 70% since the beginning of 2018.

The ripples of bitcoin’s crash spread through to other cryptocurrencies, effectively covering the crypto market in a bloodbath that has turned the bulls into bears. As expected, it has also sparked a raft of panic-selling that has continued to push prices lower.

As the market remains depressed and many attempt to cash out, Wall Street veteran and leading cryptocurrency analyst Teeka Tiwari says investors who hurriedly sell off crypto assets like bitcoin and ethereum would come to regret their decision in the coming months.

Tiwari who was an active player during the dotcom boom revealed in a recent blogpost, that one of the biggest regrets in his career as a hedge fund manager is giving in to the pressure to sell during a market pandemonium without taking a long look at the future potentials of the asset class.

“As I look back over my career, the biggest losses I ever took were on ideas I got scared out of right before they exploded higher.

“During the 1990–1991 tech bear market, I panicked and sold a large piece of my tech portfolio. At the time, it looked like a good decision.

“I remember patting myself on the back thinking, ‘Look how smart you are selling some of your stocks. They are down another 30% from where you sold them. You are so clever.’

“Had I held onto those stocks, I’d have been $20 million richer by the end of the decade.”

Ignore The Current Sell-Offs: Here is Why You Should Hold on to Your Precious Bitcoin
Ronald Wayne sold his 10% stake in apple for $800 in 1976

Tiwari goes on to list several other instances where people have short changed themselves by selling fast including Ronald Wayne, the third cofounder of Apple Computer who sold his 10% stake which would be worth $90 billion today for $800 in 1976.

Tiwari identifies three major factors that have contributed to keep bitcoin’s prices down in recent months, namely; the hack of Coinrail, the ongoing investigation by the Commodity Futures Trading Commission (CFTC) and news of increasing government regulations.

While the hack of Coinrail hurt the market by putting millions or even hundreds of millions of bitcoin in the hands of thieves, who sold them off for next to nothing. The ongoing investigation by the CFTC on the other hand would eventually clear the way for the entry of institutional investors into the market.

With news reports saying that nearly all the major tech companies including Google, Facebook and Amazon are secretly and not-so-secretly trying to get in on the blockchain action, it is no doubt the technology of the future

As Tiwari concludes; “Whether you get a hack, whether you don’t get a hack, whether the CFTC decides to crack down or not crack down, none of that changes the long-term trajectory of this asset class, of bitcoin itself, or of the entire ecosystem.