What to do with Bitcoin now?

Millions of people jumped into the world of Cryptocurrency when Bitcoin coin reached its all-time high of $16,000 at the beginning of 2018. Exactly a year later, the world’s most famous cryptocurrency was hovering around $3,500 and seemed to be heading down steadily. In the light of this bubble bust, should you stay away from the volatility of crypto markets? Read along to find out.

What happened?

In 2017, Bitcoin and other cryptocurrencies went mainstream. Even non-technical people were able to buy and spend these coins. As a result, many of them poured money into BTC. It also became the default currency for transactions at most cryptocurrency exchanges. The steady rise in volumes and general acceptance of bitcoin attracted the attention of

Suddenly, hundreds of new cryptocurrencies entered the market and money poured into the crypto market, creating an artificial bubble. Most of these cryptocurrencies did not have a viable business idea, except for its speculative value. When BTC reached an all-time high of $16,000, speculators liquidated their coins while the geeks and real believers held on to their currency. They move got a nickname as ‘HODL.’

 Two types of Cryptocurrency companies.

In the cryptocurrency world, there are two types of start-ups. One is centred around using blockchain technology to solve real-world problems while the others are ‘wannabe’ bitcoin types. Companies that use technology to solve problems have a better shelf life and a higher chance of survival than cryptocurrencies that aim to be a money replacer.

Though the second type may get a big valuation jump in the initial stages, their survival is always doubtful. The companies that spend time on solving problems will have a better return in the long run.

Will cryptocurrencies rise again?

No doubt. Whenever there is a bubble burst, there will be a period of slow growth and consolidations. Weak and useless companies will die, while companies with clear usability ideas and actual value survive. Blockchain technology has many critical applications in our world, and it will be used for decades.

Cryptocurrencies which have real value will survive this burst and emerge even stronger. This consolidation will help push better ideas ahead. In a couple of years, they will once again rise. But the days of 1000x growth are probably over.

But that is good news.

Stable growth over time can yield a lot more benefits than occasional spurts. The bubble burst will also keep the speculation to a minimum, allowing value to rise above the noise.

As a common man invested in technology, it is best for you to investigate different cryptocurrencies and their business plans before you consider investing. Though technology changes, research and due diligence are still the same. Know the company and the people behind it and take a calculated decision. And always dig deep before you say yes.

Update July 2019: Bitcoin value has gone up to 13,000 USD. As expected many smaller coins stagnated into oblivion.