Please click the play link to listen to the 23rd episode of my weekly crypto podcast ‘Two Minute Crypto.’ These are intended to be short, single-topic ramblings on some aspect of the cryptosphere. Comments and critiques welcome. Please consider dropping a like and or a review on iTunes or Podbean if you enjoy the podcast.
Two Minute Crypto – A 1k Bitcoin
Welcome to Two Minute Crypto. Today I’d like to raise the spectre of a 1 thousand dollar Bitcoin. Any cursory trawl through the crypto space will unearth numerous low-end projections for the price of Bitcoin in 2019. 3K, 2k, 1.8k all are bandied about but 1 thousand seems to exert a strong attraction for a wide-number of well-respected technical analysts and long-time crypto participants. They differ in terms of reasoning, attributing the pending decline to market waves, soon to unfold economic hyper-inflation, and so on. However, what almost all of these analysts seem to agree on is that 1 thousand will mark a true bottom for Bitcoin with a subsequent return to new all-time highs ensuing in and around 2020.
For my two cents, I see the bottom in at 1.8k but of course, this is only my best guess. However, I do recognise that Bitcoin could smash through what I consider strong support and indeed hit 1k or less. Now to the point – I’ve taken this possibility onboard.
I’ve also entertained the thought of a crash of Bitcoin to zero -I’ve examined the possibility at length, performed my due diligence and dismissed this possibility as exhibiting extremely low probability over a 5-year horizon. OK so not to zero but 1 thousand – absolutely possible.
Should BTC break 3k, a sudden tumble to 1.8k support seems entirely likely. Within a range, below 10 thousand and above 1 thousand dollars I’ll be dollar cost averaging every two weeks regardless. These are minor – disposable income level investments. At 1.8k I’ve stacked more substantial buy orders but I’m holding a significant portion of Bitcoin targeted fiat for a fall to roughly 1k. My investment horizon for all these actions is clear – I’m expecting a multi-year time frame before substantial returns may accrue.
As to a fall to one thousand. Sure, it probably won’t happen. These orders may not be filled but should the price collapse they will come into play. Acknowledging and planning for such price volatility is key to weathering the crypto investment journey. If you hold Bitcoin and haven’t seriously considered a 1 thousand dollar valuation, perhaps its time to do so when you may calmly consider your options without the emotional turmoil and mass media hysteria such a fall would induce.
Thanks for listening.