The Crypto Crash - Why it Happened and Why it Won't Be the Last One
In this episode:David and I go over our opinion on what caused the crypto crash this week. But above all, we put it all in PERSPECTIVE. That's our keyword for this episode.Bitcoin (BTC) reached an all time high at $64,829.14 in mid-April, and during this week's crash, it lost as much as 40% in value in just a few hours. Ethereum's token (ETH) suffered just as much if not more after dropping to around $2,000 per token from an all-time high of $4,382.73 set earlier this month.And of course when two key players plunge, the rest of the players in the crypto neighborhood suffer just as much. But here's where Perspective comes to play...Despite the recent drastic drop in value, over the past six to eight months, the value of Bitcoin has more than quadrupled since lurking around $10,000 last September. By the same token (pun intended) if you look at the price of ETH in September 2020 it was around $325. Now, AFTER the crash, it's trading at around $2,800 as I type this. True, it's not the $4,200 from a couple of weeks ago, but still, I would take this 8X gain in 9 months anytime, anywhere. That's PERSPECTIVE.It is also worth mentioning that during this period, major financial institutions including Goldman Sachs, National Bank of Canada, Wells Fargo, JP Morgan, as well as major hedge funds and other public companies including PayPal and Xbox, are adopting cryptocurrencies as part of their assets class or offerings.If you're just a casual trader trying to make a quick buck over the past few weeks with all the free money received from the government, chances are, you've lost it all and then some more. However, if you're a long term investor with a proper strategy, even after this crash, you're still much better off than you were just 10 months ago, and definitely much better than if you had just parked your money in a traditional savings account.What goes up, must come down. You just need to plan for it and make it part of your game plan. At the same time, not all crypto currencies, exchanges, protocols are created equal. Solid protocols will survive these types of crashes and come back stronger. The weakest ones, will just disappear and rightfully so. It's no different than any company surviving a recession or becoming a victim of it.So, there you have it. It's crypto. It's volatile. Get used to it.Want more?Subscribe to The Edge eComm Digest and receive weekly news directly in your INBOX >Check our other stuff out too:The Edge Instagram Facebook LinkedIn Medium Twitter MGR Agency WebsiteThis episode is brought to you by MGR Agency. Scaling marketing for leading digital brands.If you liked this episode, please share it with your friends. If you REALLY liked it, please leave us a positive review on your favorite podcast platform. Thank you for watching or listening!
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