The price for Bitcoin has been on a bit of a downturn of late, and many are probably wondering if this is indicative of a long term slide or just a minor dip before BTC goes to the moon. I personally think it may drop a bit more, maybe as low as $6100, but will then rebound stronger than ever. Most of the price correction IMO stems from FUD (Fear Uncertainty and Doubt) related to many of the big backers of Libra pulling out. For me, however, this is yet another sign that a decentralized finance (DeFi) option such as Bitcoin, Monero, ZCash etc are seen as a threat by the US Federal government.
For those of you not seriously into Finance, there are several key indicators that the U.S. Dollar is in trouble. First, the Federal Reserve just keeps printing money. Just a few weeks ago they added nearly $300 Billion back into the economy. Sounds like a good thing right? Wrong. That money will only lead to inflation, and who wants more of that? Well, the federal reserve does because that, in turn, makes our exports cheaper... except every other governmental bank is doing the same thing for the same reason. This is the root cause of numerous nations now lending at negative interest rates. How the heck is that even possible. It shouldn't be.
So because of all this financial craziness, I see crypto as a nice hedge bet against runaway inflation. I will be purchasing another small amount of BTC this week and may buy into Ripple (XRP) or add to my favorite little altcoin Chainlink (LINK) position. What should you do? Without knowing your financial standing, risk tolerance, spousal trust level, etc. I can not give you a good answer. I will just say this. In an ideal investment, you buy low sell high. IF I am right and the price of BTC is on the way down a bit lower, then you may be better served by waiting if on the other hand, you start to see signs of BTC climbing rapidly, will you have missed out on a great price?
Let me know what you think.