Should You Buy BITCOIN Now? [Or Not?]


Today in crypto fear continues to be the major driving force in global markets and the Federal Reserve has just announced a massive rate cut and a quantitative easing package. It’s getting crazy out there guys. Meanwhile, the crypto markets they’ve been kind of quiet almost too quiet now in this video. I want to try to answer the question should you or should you not buy bitcoin right now the crypto Lark. This is where you subscribe for all of the hottest and the latest happening out there in the wildlands of crypto broadcasting at least five times a week. Come hell or high water or crazy market conditions. Whatever we’re doing now before I answer that question for you if you are new around here and you are still trying to figure out all of the basics of crypto like how to actually buy bitcoin then check out my course crypto currency explain. Now, this course is going to walk you through all of the basics of Bitcoin like what Bitcoin is how to buy it how to store it how to send it there is a link down below in the description where you can learn more about the course. So let’s start off today’s discussion with the reasons why you might not want to buy bitcoin right now. The first reason there is a massive amount of deals risking happening right now in global markets and there is a desperate need for liquidity from investors. Investors, right now they are piling into cash. This deals risking event. It is not over. More people will sell their bitcoin for liquidity. Yes, a lot of sellers they’re already out but not all of them. And those people who are looking to exit now they will face an increased lack of liquidity especially we start talking about the stock markets. When the people trying to cash out over there and of course that just forces the prices lower. On the other hand, we should be happy in eleven short years. Bitcoin has gone from just dark web cypher punk fantasy to be in just a little bit a spicy addition to a serious investor’s portfolio. Bitcoin has made it but as a side effect of making it these same investors, they are going to be the first ones to drop bitcoin when wider market conditions head south. This is a large part of what we have been seeing with the huge crash in the price of crypto over the last few days. Watch for a total capitulation from all these hedge funds and Fidelity customers as well as the Wall Street guys the millionaires and yeah a lot of retail traders will also capitulate as well. Sure many have exited but not all of them. I don’t think we have hit peak capitulation yet with all of these different parties. Is that this crisis that is unfolding. It may get way worse before it starts getting better. I do not think that we are at peak fear yet and I think that there’s a lot of economic pain to come. The world is right now shutting down its economy. Country by country day by day complete global shut down a massive global depression is very possible GDP is going to get crushed companies they’re going to go bankrupt and there could be a massive wave of unemployment. Just wait until the markets open up in the U.S. on Monday I think we might just see how bad it could be with all the things that have happened over the last 48 hours this weekend. It was so much fear and uncertainty in markets. It can be a very dangerous time to be entering crypto goodbye today and be 50 percent less tomorrow. The third reason to not buy Bitcoin is to stay in cash to stay nimble and take advantage of opportunities. Take this seriously though you have to make sure you’ve got to be able to actually weather out the storm too it’s not just about to be able to buy the dip right actually being able to you know to buy the actual dip to eat and survive. Sure adoption is growing daily but you have to just keep my cash is king and you have to wear what the market can remain irrational for longer than you can remain solvent. So please make sure that you have enough cash on hand to ride out the next few months. This could last three to six months might be over in a few weeks but make sure you have a good pile of cash on hand and then you’re going to be here are we all good. So if you do that equation and you think you know I’ve got a decent bit of extra cash here then you can consider using that to buy bitcoin with. Also if you’re mostly in cash right now and you plan to stay in cash for a little while then you actually do consider putting that money to work for you. You can use something like block five-block fi has just enabled you as these wire transfers so you can now send USD wires to block fi that’s credited to your account in Gemini dollars then you get to sit back and earn eight point six percent interest on your dollar deposits. Not gonna give that to you but even better than getting more dollars you can actually set your payout preferences to get paid out in Bitcoins these parks your money there and you’re stacking SATs month after month. So you just stay in cash and get paid in Bitcoin. And if you need your cash it doesn’t take very long to get it back from block Fi and back into your bank account. So it’s really easy to move in and out of that. There’s a link down below where we can learn more about block Fi and their services. OK. Now let’s move on to the reasons why you might want to consider buying bitcoin. Now if we look at a technical level Bitcoin is sitting well below both the 200-day moving average and the 200-week moving average. This could indicate a very rare bit of very bearish market sentiment that will not likely last for a very long time. The people buying at these levels will probably look like legends in a few years. Now another group who will look like legends in the future are the dollar cost averages. Those are the hardened Bitcoin warriors. They just buy 50 bucks worth of bitcoin every payday or whatever the number happens to be rain or shine up or down. The only difference for those long term bitcoins is that now they get more bitcoin in exchange for their dirty dirty Fiat which is definitely nice. These are the guys and gals whose mantra is just to stack sets and Shell. They know that in five years none of this is really going to matter and we’ll be at new highs. It’s just a question of having a low time preference. Now the next reason to consider buying Bitcoin is the I guess the overall economic situation is getting crazy over in the United States the Federal Reserve has just announced that they are cutting rates to 0 0 0 and that they are launching a massive 70 billion dollar quantitative easing program that’s on top of all the other stuff the liquidity for the markets and just crazy amounts of money to throw around right now. This is the second emergency rate cut in two weeks by the way which is completely unprecedented rates have dropped from one point five percent down to zero percent in two weeks. This is some serious stuff and I doubt that it will be the end. I think that negative rates will be coming to the USA very soon. The European Central Bank they’re promising more money unlimited liquidity the Reserve Bank of Australia they’re cutting rates they’re handing out money to the repo markets. It’s crazy. We are looking at unlimited repo cash unlimited liquidity on limited money printing and negative rates all central banks around the world. They are going to be following in the coming days. What we are looking at is a massive devaluation of fiat currencies negative rates will be implemented everywhere. Bank bailouts bank bail-ins all that stuff looks more likely than ever. Because all of these rate cuts and all that free money it is not stopping the bleeding in the markets the crazy thing is that the crisis it has just begun and already seen the central banks basically using all those all their tools pulling out all the stops. They have no other weapons to fight this crisis except to just continue doing what they’re doing by printing even more money. Cutting rates even further and they will need to put a lot more in for the simple reason that this bubble that just burst it is way bigger than the sums of money that they are currently trying to throw at it. Also, breaking news is that eight of the largest U.S. banks have just announced that they are not going to buy back shares through the second quarter of 2020. Now, this is pretty important cause I want you to understand that banks could actually fail. This has happened all over the world it could happen in your country too and that the FDIC that only covers around 1 percent of U.S. deposits and with the world and countless countries really being on the verge of economic collapse having control of your money it seems more important than ever I mean capital controls that’s not out of the question either this insanity happing with the banks right now. This is a strong reason that keeps me holding my bitcoin through all these ups and downs we see in the market. I know this is extraordinary up and down event but it keeps my faith in Bitcoin. Another reason to consider buying Bitcoin right now is that of course that the third Bitcoin having is less than two months away Bitcoin remains a scarce asset. Bitcoin is permissionless decentralized programmatic digital money with a firm monetary policy there will only ever be one million Bitcoin. Bitcoin is here to stay even if the Fiat value gets hit more in the coming weeks. Bitcoin is not going anywhere. No one’s going to just stop doing bitcoin. Short term pain that will go away and Bitcoin will rise from this stronger than ever. In fact, the extraordinary market fear is giving many new investors actually the chance to come in to buy bitcoin at pretty good prices. For many, this could be a once in a lifetime opportunity. And look long term those who survived this event they’re going to make a fortune it always happens in a crisis so many people panic sells in a few savvy investors they come commented scooping up all the deals and they make a killing. One thing is for sure though is that this is the time that will define those who actually believe in Bitcoin in the bigger picture what’s trying to be done here and those who are just here for a quick buck. Stay frosty everyone. The dynamics in the market they are changing incredibly fast moment and there are actually many opportunities out there to make money in the current market. If you look with the right eyes. OK, so what am I doing personally. Well of course that a financial wise is obviously just the dude on the Internet talking about cryptocurrencies and everything just my own personal opinion. You must always that works for you in your personal finances so the first thing for me is that I’m actually sitting on a good chunk of cash so I’m not super worried about all the current market events that we see happening. I mean the majority of my portfolio is still in crypto. But I’ve got a nice bit of cash set aside and actually I’m not stacking any SATs than I really would do in any given week and I know I know it’s a prize Sam Butler. But learned by the dip. Why else do you have all that cash sitting there? Well, out in the real world I have a food business that I want to be very cautious with to make sure that I’ve got enough cash on hand to ensure that it will do well in any given prolonged recession event. Now does that mean that I miss out on a few gains in the crypto market? Yes, this is true but I’m not personally worried about that over the last few years. I position myself very well into crypto and I have a stack of Bitcoin that has just been sitting there building for a while now I don’t feel like there’s this panic like I’m going to miss out. Up I’m doing OK. I’m doing OK. Perhaps more importantly though I want to say that I’m not selling my crypto at this point. I’m holding it also trading some crypto at the moment. There have actually been a few sweet opportunities in the market over the last week but it is definitely a high-risk environment so that’s worth keeping in mind. So mostly I’m really just chilling right now. Yes, stack and a few SATs buying a little bit ethos of my usual weekly thing and then chilling and then chill and I am not aggressively buying this dip not because I don’t want to that dip looks tasty but because I’m not willing to tap into the extra cash reserves that I need for ensuring the long term health of my business. And of course, having a decent cash position will also mean that I don’t need to sell any of my cryptos if things get any worse. But of course, you’re going to have a different story and I’d love to know that story. Are you heavy buying into this dip. Are you sitting in cash and chilling hoping for lower lows? Are you just dollar-cost averaging in and really just not worrying too much about all these ups and downs is that maybe it’s been excited to get a few more Satoshi is in your dollar cost average this week or are you at the cash you just sitting there like if only I could buy this dip. Let me know what you’re doing down below in the comments section, of course, we’d love to hear what you are up to in the markets currently and finish up today’s broadcast. I have a little quote from the wordsmith Frank Herbert from his masterpiece Dune. I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear I will permit it to pass over me and through me. And when it has gone past I will turn the inner eye to see its path where the fear has gone. There will be nothing only I will remain long live the blockchain and peace out. Next time.


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