February 2018 Pullback – Has the bubble popped?

It’s no secret that the crypto market is hurting – there’s been a nearly 60% pullback from the all time highs from mid January. However, if I can put on my uneducated hat now, it seems like through late December and into early January 2018, there was a lot of hype, and lots of new people jumping into the crypto space trying to make a quick buck. They don’t know what BTC is. They didn’t research and of the alt-currencies. They don’t understand why BTC can grow in value. And now this has come back to bite them. Since they had no basis for faith in their investments, they’re likely selling at a loss trying to get out before the dreaded ‘bubble’ pops all the way to zero.

For those of us that were more calculated, more studious in our investments, I’m in it for the long term. I know why I like BTC, and all of those reasons still exist.

Plus, now that the price has pulled back, I get to buy some more BTC for great deals! I remember back in November when it spiked up to around $10,000 thinking “I wish I could’ve bought more before it went above $10K”. Well, what separates the amateur investor from the expert, is the ability to go against the flow (not wrecklessly just because, but calculated). So, in a deep pullback like this, are you able to keep investing? Will you use this opportunity to buy more, or invest in more mining hashpower, look for the best mining GPUs of 2018 and get ahead of the crowd, or will you wait until the price starts spiking back up, and wait to buy at the top with everyone and their grandmother? (no offense to any grandmothers that already know what BTC is!)

My strategy is 2 fold: invest in coins directly, and increase my hashpower.

  1. Invest in coins directly
    I’ve avoided doing anything too risky with my cryptocurrency portfolio, but now that I have a solid, diversified base of investments across a few different coins, I’m getting gutsy.
    If you look back at charts, if you can compare BTC vs Altcoins, there seems to be a pattern. First, BTC spikes. Then after a while, BTC tapers off, or even backs off as money flows out of BTC into the alts.
    Since everything seems to have pulled back now (in February 2018), my strategy is to buy BTC. Once BTC spikes and starts tapering, I’ll move my ‘more expensive’ BTC into the Alts before the Alts catch on fire.
    I know, I could get burned, but I’m only dealing with a couple hundred dollars so the proposition seems like an adventure to me!
  2. Increase my hashpower
    The investing is fun, but I’m building out my hashpower too. I’m on the lookout for the best mining GPUs 2018, but prices are just really really high. It will take a while, but if prices of the cryptocurrency market stay deflated like this, then there’s no doubt the GPU market will suffer and prices will start backing off towards MSRP again. Heck, maybe even some weak hands will get scared (you know, the ones that bought GPUs at the hight of the market because they based their earnings on the inflated crypto prices so their 2x MSRP GPUs were still profitable) and sell some pre-built/pre-assembled mining rigs for good deals on Ebay or my local Craigslist!If you base your ROI for your 2018 GPU mining rig on future potential earnings, then there’s possibility for massive profits in the next 3-6 months.

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