Cryptocurrencies: Why you shouldn’t be worried about selloff

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Bitcoin, crypto miners
A
worker checks the fans on miners, at the cryptocurrency farming
operation, Bitfarms, in Farnham, Quebec,
Canada.

Reuters/Christinne
Muschi


  • The crypto market correction is just a bump in the
    road.
  • Crypto’s will come
    back.

     
  • There are promising crypto’s and junk crypto’s, make
    sure you d

    istinguish between the
    two. 

As the Satoshi Roundtable IV, a small gathering of some of the
most influential and legendary figures in the crypto space, wraps
up there’s one primary reflection I’d like to share with
you: nobody who
attended this event appeared in the slightest bit panicked about
the recent crypto correction… and neither should you.

In all the discussions I was a part of, people simply referred to
the recent market correction (from a market peak value of US$825
billion to as low as US$280 billion in the space of a month) as a
matter of fact… as though it were an everyday occurrence.

This kind of blasé attitude is born from years of experience.
Many of these guys were there right at the birth of today’s
crypto market, working alongside the anonymous bitcoin creator
Satoshi Nakamoto himself.

There were other attendees whose work and innovation actually
laid the foundation upon which bitcoin itself was designed.

In other words, these guys have already seen it all. So a 60
percent-plus drop in the market is just another battle scar
amongst many.

This ability of a collective of seasoned, hardened crypto pros to
shrug off price volatility allowed for this conference to focus
on what it does best – diving deep into
the real meat of the
crypto space… debates on privacy, scaling, development,
exchanges, regulation, decentralisation, token securitisation…
even an appearance and lengthy speech from U.S. Congressman Dr.
Ron Paul.

This too shall pass

I couldn’t help but draw a contrast with my wedding.

Let me explain…

You see, I got married on a surprisingly hot afternoon in Hong
Kong in late October 2008.

A month earlier, Lehman Brothers had filed for Chapter 11
bankruptcy protection. The benchmark S&P 500 equity index was
cratering below 900, down 30 percent in a matter of months.
Financial markets were chaotic.

I recall a large number of guests speaking of little other than
the stock market. There were more than a few senior investment
bankers and traders in attendance. Most were glued to their
Blackberries. Others just hit the bar… hard.

The only people there who seemed immune to the panic were the
older guys who’d been around the block a few times already. Guys
like my father Peter, for example, who’d worked through the
dotcom bubble, the Russia debt default, the Asian Financial
Crisis, the Japan bubble and Black Monday, amongst others.

They say that one human-year is equivalent to seven dog-years.
It’s a similar ratio for human-to-crypto years.

In the nine years since bitcoin was born, there have been nine
major corrections (two of them being over 90 percent!).

That’s why the kind of people who
gather for the Satoshi Roundtable are so laid-back about the
market. A correction is just par for the course. The important
thing is that nothing has fundamentally changed with regard to
the long-term future of the crypto space.

In the same way that people like my father knew that even a
crisis wasn’t the “end of equities”, so too do the crypto
veterans know that this correction is just another bump in the
road that will ultimately pass.

Positions

The second major reflection I have after the past couple of days
is this: 2018 will be about quality. By that I mean the market is
going to bifurcate between cryptos that exhibit real promise, and
the garbage (which constitutes the majority of the market).

So if you’re going to invest in
cryptos, you need to make sure you’re investing in the
right ones
.

Read the original article on Stansberry Churchouse Research. This is a guest post by Stansberry Churchouse Research, an independent investment research company based in Singapore and Hong Kong that delivers investment insight on Asia and around the world. Click here to sign up to receive the Asia Wealth Investment Daily in your inbox every day, for free. Copyright 2018. Follow Stansberry Churchouse Research on Twitter.

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