We are rapidly approaching the one year anniversary of Bitcoins all time, mind blowing, historic high of $19,140.70 USD that occurred on December 19th 2017.
Just as predicted, the price of Bitcoin has suffered a staggering, absolute collapse in price since that period of time, falling to a low of $4,246.31, just a few short days ago.
As of today's writing, Bitcoin has tested its low multiple times, perhaps foreshadowing a move higher as the crypto bulls attempt to rally higher into the close of the year.
Sadly, for many, this is a time period of abysmal reflection, as there were countless examples of perma bulls making irrational calls during this time period last year, some even going as far as to put their money where their mouth was, selling everything they owned and doubling down on the crypto bull market rally.
Unfortunately, the hype has died and so too has many of these people's dreams of "making it rich quick", as they learned the harsh lesson that has been repeated time and time again throughout financial history. Nothing goes up forever.
For those who think for a moment that I am a "Bitcoin", or crypto hater, quite the contrary, I was there early, participating in the Bitcoin economy when it was young, partaking in the movement on Bitcoin Talk, the central hub for the crypto sphere. I was there when it was a true community.
The alarms bells started ringing for me as I noticed the continued deterioration of the Bitcoin community, as it was rapidly and steadily devoured by the "HODLERS".
These "perma" holders of Bitcoin rapidly destroyed the foundation of Bitcoin, as the economy that surrounded Bitcoin and other crypto currencies was rapidly destroyed, eroding the foundation that led to the historic moves higher.
I watched as long term supporters of Bitcoin, many of whom were staples of the community began to leave in droves, either cashing out, or throwing their hands up in frustration as they watched what once was a thriving alternative currency, devolve into a "get rich quick scheme".
A madness then erupted, that put the "Tulip Mania" to shame, as the MSM media and a swarm of ill informed "investors" began to draw an ever increasing amount of attention to the crypto marketplace, many of whom claimed "it could never go down".
People who couldn't even pronounce Bitcoin began to discuss its daily movements, and it was the hottest "cooler talk" at many workplaces.
To any contrarian based investor, this was like a flashing red light, and blaring siren going off all at once. The writing was on the wall, and this massive bubble was about to explode, wiping out thousands of lemmings in the process.
The rest is history.
Fortunately, Bitcoin has survived and is still here, with many positive indications on the horizon, even as it continues to trend lower in the short term.
Hope remains for those who still wish to see it, and the community that once surrounded it, return to prosperity, hopefully avoiding some of the mistakes of the past.
As the year rapidly approaches a close, take a moment to reflect, think of the current stock market rally and the gyrations that it has been experiencing as of recently, and remember this. Nothing, absolutely nothing goes up forever. Prepare accordingly.
- Source, As first seen on the Sprott Money Blog