Bitcoin has continued to stay around $20,000 for months now. I wrote on this website that I suspected that this was going to happen back when it was bobbing between $30,000 and $50,000.
Right now, I have no reason to believe that the crypto currency is particularly safe in the short run. The problem, of course, is that nothing is safe.
I’m not arguing anyone should sell, but I thought it was important just to make a note that there is a good chance that as the economy continues its collapse, as stocks and real estate continue to drop, there is a good chance Bitcoin and other cryptos will drop further.
That said, it’s had staying power at $20,000 as the stock market was evacuated – so who knows.
No one knows. I don’t give financial advice. The only thing I will say is that you shouldn’t have any money in crypto that you’re going to need for something else. It will obviously go back up, as the dollar continues to slide into oblivion, but it could go lower and it could be a long ride.
Also: real estate is going to hold better than crypto in the short and probably medium term. I don’t know about the stock market, but I tend to think it is going to go very low, and that this may actually be good for crypto.
The dollar is going to 0, but the fact to consider is that every other fiat currency in the world must collapse before the dollar collapses – at least all of those outside of China and Russia (and frankly, China has a problem with their currency being very entangled with the dollar). When currencies collapse, people move to dollars, which bolsters the dollar, even while any world currency collapsing means that the dollar is closer to collapse. It’s a strange and sort of counterintuitive dynamic.