Why I Buy Bitcoin During Crashes Despite Calling it a Bubble

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Bitcoin has continued to decline since my last video, only just recently jumping back up to the mid $8k’s at the time of writing this. For many first-time investors, this is likely a painful experience and shows the harsh realities of investing (that there is risk involved, especially for cryptocurrencies).

Steemit Post: https://steemit.com/bitcoin/@cryptovestor/why-i-buy-bitcoin-during-crashes-despite-calling-it-a-bubble

A lot of people are confused as to why I still buy into Bitcoin despite calling it a bubble. This is because one is a bet on perception (when I buy Bitcoin) whereas one is a bet on reality (when I call Bitcoin a bubble).

Bitcoin adoption has been slow, with roughly 1% of transactions or less being used for actual commerce (I seriously doubt Bitcoin gets most of its value from the ‘digital gold’ argument either given it just lost 60% of its value in a month and a half). Many investors in this market are very emotionally driven and there is a lot of mob-like mentality and parroting of key opinion leaders. Almost always, behavior like this leads to bubbles. While we often cite the dot-com bubble, there have been many other mini-bubbles where people’s perceptions disconnect from reality (e.g: 3D printer stocks).

This is exceptionally common in tech due to lack of understanding by investors, and this is even more extreme in cryptocurrencies due to its low regulatory nature and political ideologies skewing it toward a younger, more volatile demographic.

I continue to buy Bitcoin because, as stated in my previous description, I suspect that many people missed out on the meteoric rise of Bitcoin in the 2H17 and won’t miss out on another pump if it occurs. This is based solely on perception, not reality.

Lastly, on the more practical side, I am keeping an eye on many altcoins in the event that their Satoshi levels come down to more attractive buys.

How are you playing this market and what are your thoughts moving forward? Thank you for watching / reading!

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If you like my content, you can support me through using ANY of the affiliate links below (I receive small compensation). The beauty of affiliate links is that I can pick and choose what I like rather than have companies approach me – everything I linked below (with the exception of Trezor since I like Ledger), I use myself frequently.
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My Recommended Hardware Wallets:

If you want to store your cryptocurrencies safely, the best way is through a hardware wallet. Seriously – look it up and you’ll find plenty of information supporting this claim. There are alternatives such as paper wallets, but these are convenient and my choice for cold storage (offline):

Ledger Nano S: http://amzn.to/2hZPj0q
Trezor: http://amzn.to/2AxD9TN
Ledger Blue (expensive): http://amzn.to/2hk7xst

I personally prefer the Ledger Nano S, but the Trezor is such a close second that it really doesn’t matter which one you go with. Ledger Blue is premium and convenient, but not necessary.
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My Favorite Book for Investing in Crypto:

Cryptoassets: http://amzn.to/2zKDdCF

This book is, bar none, my favorite book for investing in cryptocurrencies. It doesn’t bog you down with technical jargon, but instead focuses on all the elements you should understand before you invest.

It’s a comprehensive book for both beginners and experts. Beginners will find information about major cryptocurrencies (not just Bitcoin) as well as details on historical market events (that you can draw on for future) and events to watch for moving into the future. Experts will find the chapters on valuation particularly useful. For those of you involved in traditional investing, this book is even more of a godsend as finance info is explored (correlations with other asset classes, ETFs, etc).
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My Recommended Exchanges: Coinbase / GDAX / Bittrex

https://www.coinbase.com/join/5a08b12e305a1401d79d10e0

If you sign up to Coinbase using link above, you and I will both receive $10 each after you buy your first $100 of Bitcoin using Coinbase. Coinbase is much less intimidating for beginners. Once ready, move up to GDAX for cheaper or zero fees. For altcoins, I recommend Bittrex.
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Legal Stuff: I am a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for me to earn fees by linking to Amazon.com and affiliated sites.

None of what I provide in my videos is investment advice. Please do your own due diligence.
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My Platforms:

Twitter: https://twitter.com/Truth_Investor
SteemIt: https://steemit.com/@cryptovestor
Medium: https://medium.com/@Truth_Investor
Seeking Alpha: https://seekingalpha.com/author/truth-investor/articles

Comments

Crypto Investor says:

What a crazy night – who knows what is in store for us over the next 24 hours, but figured I'd make a video for an update now. As usual, if you'd like to interact with me, make sure to check out Steem: steemit.com/bitcoin/@cryptovestor/why-i-buy-bitcoin-during-crashes-despite-calling-it-a-bubble. I also post live updates on Twitter when I can, so come follow me: twitter.com/Truth_Investor.

Altcoin Promos says:

Anyone else go on a shopping spree yesterday during the giant sale? (better than black friday's sale imo)

Moneysistobemade says:

Get out now! sell everyhting, tether pumped bitcoin, it is all over

BeyondThoughtMedia says:

It may well be a bubble, but you still only argue from one side! Any chance you can look at the other point of view and make a more rounded argument??

Blockchain Gael says:

If your wondering why the market so GREEN, I explain the reason in my latest vid, you welcome 😉 STRONG HANDS PREVAIL

Dom Perignon says:

You sound like a total idiot. I think the only disconnect between perception and reality is in your delusional mind that has Bitcoin correcting down to $1-2k. I can guarantee you that it will not. It seems that you know nothing about trading analysis, probabilities, and fundamentals. Rookie.

Crypto Wallstreet says:

Bitcoin has spectacularly 'died' several times. Corection is over bull run is coming!
📉 – 94% June-November 2011 from $32 to $2 because of MtGox hack

📉 – 36% June 2012 from $7 to $4 Linod hack

📉 – 79% April 2013 from $266 to $54. MTGox stopped trading

📉 – 87% from $1166 to $170 November 2013 to January 2015

📉 – 49% Feb 2014 MTGox tanks

📉 – 40% September 2017 from $5000 to $2972 China ban

📉 – 55% January 2018 Bitcoin ban FUD. from $19000 to 8500

Mattis Trygstad says:

Great video as always, thanks for your input!

Naddy Nodge says:

The price is composed of two things: 1. Intrinsic value, 2. Estimated future intrinsic value.

esXXso Sleep says:

This video made me think that in fiat, there's also a disconnect between perception and realty because not too many people know that the government give fiat its value, not gold anymore. Guess who give gold its value? The people! Without us, gold would just be another piece of metal.
If governments give fiat its value through democracy (because we delegate our power to them) then Crypto is doomed to succeed because we are cutting the middle man called government; and we the people, are giving Crypto its value directly though supply and demand! This is the next step for democracy and capitalism! (Not without hiccups of course)

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brady nields says:

2:06 I think it's a difficult concept to wrap our heads around because you are using terms that don't define the situation accurately. If bitcoin is a bubble then why are you buying it? Check out the video on my page with David Seigel.

brady nields says:

0:40 By it's very definition, this can't be a bubble, it's popped more than once. Like you said there's a lot of emotion and volatility, but it's not a bubble. People can't trade bubbles.

Carver Efrain says:

Hello Guys, please i need to buy Bitcoin in Bulk for Mining, i will be needing up to 200 BTC, if any one have for sale i am willing to buy right now the quantity you have for sale.
Here is my Email carverefrain007@gmail.com
Please Treat with ugency .

Alexisss _ says:

니가 싸게 사고싶어서 그동안 그랬겠지ㅋㅋ 왜 샀냐니ㅋㅋ

Naushad UzZaman says:

Great video! Always refreshing to hear from people without blind belief. Great that it was among top 3 videos from last 1 day. Helped me find it through http://coiningnews.com 's youtube page.

Decebal825 says:

one thing confuses me is why does gold have any intrinsic value because it is not being used for commerce. people are not buying coffee with it.

ana lima says:

Gentee alguém me ajuda por favooor

BeyondSociety says:

Great video as usual… Still waiting on the long holds 🙌

Sauro Melani says:

Which Platform do you use to buy alt? Are these exposed to tether risk?

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