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6 Lessons Bitcoin Investors Can Learn From Past Financial Crises

The sharp ups and downs in price typical for Bitcoin may frighten newcomers to the crypto industry. However, anyone who has been following BTC for a relatively long period of time has grown accustomed to these fluctuations- you are unlikely to be afraid of a fall from $60,000 to $30,000 thousand if you have previously seen a fall from $20,000 to $3,000 thousand and the subsequent long rise to $60,000.

Fluctuations with such high volatility are much less common in traditional financial markets. However, it is possible for financial instruments to drop sharply and cause financial crisis.

A few past crises come to mind- the crisis of 2007-2008 or the dot-com bubble. These phenomena are similar, and cryptocurrency investors can learn a lot from past financial crises.

Let’s look back at our turbulent financial past to see what we can take away.

The following article is a guest post by Bert Kozma, a writer, and Editor-in-Chief at Cryptogeek.info. As an author, he has been covering cryptocurrency and financial markets over the past decade and draws on his years of experience as a marketing and sales expert. Saimaa University of Applied Sciences awarded him a Bachelor of Business in International Business.

Editor’s note: The following article is not investment advice and is intended solely for the purpose of entertainment and education. It is a volatile industry. Before making any investment, consult a licensed financial advisor.

Lesson 1: Follow the Crowd at Your Peril.

The crowd is a poor financial advisor. It panics easily and acts contrary to logic and commonsense.

In 2005, 3 years before the onset of the global financial crisis, several people managed to predict the growing bubble in the USA housing market.

These individuals were able profitably invest and made money during the financial crisis. The book “The Big Short” and the film based on it, Michael Lewis, describes how most “experts” of the time didn’t believe there was a bubble in the market. Those who did were deemed crazy.

Scion Capital hedge funds manager Michael Burry tried to convince his investors that they are using their assets correctly and playing against the market. Some even sued him. He was eventually right, despite all the pressure. After the mortgage market crashed, Scion Capital’s profit was 489 percent – more than $ 2. 69 billion.

A sober and crowd-independent judgment is a useful asset in volatile markets.

Lesson 2: There will always be cycles in a market. Prepare.

Bull market don’t last forever.

This seemingly simple rule is often forgotten by many investors, particularly during periods of steep price appreciation.

Before the 2007 US Real Estate Crisis, which triggered the global financial crisis, real estate prices rose for a long time. In the hope that their property would increase in value, people took out loans to buy real estate they couldn’t afford before.

Regardless of whether it’s dot-com stocks or the housing market or Dogecoin, sooner or later any growth will be followed up by a decline which may or not be disastrous.

Keep this in mind, and don’t lose sight of the possibility.

Lesson 3 – Don’t Give Up on Promising Assets after a Price Drop

When the infamous dot-com bubble burst on March 10, 2000, hundreds of Internet companies went bankrupt, were liquidated, or sold.


Amazon's stock price since the dot com crash.

Amazon’s stock price since the dot com crash. Source: Miro on Medium

Internet stocks in the late 90s soared inadequately due to the general hype around the emergence of the Internet and its potential use for business. Numerous economists and commentators argued that these high stock prices were justified. Instead of creating their own business models and strategies, the companies spent money on marketing and advertising.

After the crisis, the term “dot-com”, which was used for many years to describe any immature or ill-considered business plan, became obsolete. Investors were reluctant to invest in Internet stocks because of the loss of trust in tech companies.

Today, few people are able to recall bankrupt companies like NorthPoint Communications and Global Crossing. However, many of the startups that emerged from the dot-com boom have significantly more weight: Amazon, eBay and Google are among the most valuable companies in the world.

When the price of bitcoin dropped to $3,000 in 2018, down nearly 90% from its then-ATH, many adamant investors held on. When BTC’s price rose to $64,000 in 2021, they were rewarded for their steady hands and long-term belief in the asset.

Evaluate the long-term prospects of an asset, regardless of the current hype.

Lesson 4 – Diversify

Investing all your funds in a single asset can be very risky.

If you are actively investing in cryptocurrency, diversifying your financial assets into stocks, fiat currencies and real estate is a good idea to reduce the risk of losing everything.

Lesson 5 – Be Wary of Assets that Have No Clear Value

An investment target that is not backed up by real value and has real-world utility is often regarded as dubious. Yet, many speculators take advantage of the opportunity to ride this wave.

These assets were discovered to be Internet stock during the dot-com boom.

During the 2008 crisis, the so-called synthetic CDOs represented bad debt that was much riskier than anticipated.

When we examine the most speculative crypto assets that have prices that pump for just one tweet or seem at random, we consider popular assets such as Dogecoin

Dogecoin, for example, was created as a meme and not the universally recognized vehicle of value like Bitcoin and Ethereum. It has nevertheless experienced significant growth in 2021, thanks in large part to the vocal Doge proponent, Elon Musk.

Granted, some might say that Bitcoin is also an asset that has no real-world value. Bitcoin is the most well-known and oldest cryptocurrency. It has been a reliable source of value and a medium for exchange. The Bitcoin investor ethos is credible because most altcoins can’t boast the same.

While some altcoins have greater technology than others, most coins that are on the market would make foolish investments.

Understand investing in memes in trends can be risky.

Lesson 6 – Bitcoin Investors Should Have a Backup Plan

A large-scale crisis could directly impact the viability and financial stability of financial institutions.

In “The Big Short”, Michael Burry placed a wager against the housing market by using a credit default swap.

Banks were required to pay large amounts of money in the event of a drop in securities prices. He also predicted that the crisis would become so severe that many banks would have to close their doors and not be able to pay their debts.

He saw this scenario coming and decided to only deal with banks that were not closely tied with the housing market, and would be able to withstand a crisis.

Something similar may happen in the cryptocurrency market. Imagine you have made an investment in a cryptocurrency that is only listed on a few exchanges. Imagine that you are unable to sell your assets on these exchanges due to the massive drop in cryptocurrency prices.

Poof – Just like that, your coin’s liquidity dwindles.

You need to have a backup plan.

Perhaps more likely is the restriction of the work of exchanges in the territory of certain countries in the event of a crisis. Now, it’s typical that cryptocurrency exchanges won’t be available to use in certain countries (for example, Hitbtc is not available in the USA). These restrictions may be more severe in the case of a crisis.

What might happen to your digital assets if the country that regulates these exchanges prohibits them from doing business?

Consider where these exchanges are situated and what the country’s cryptocurrency policy could be.

Carefully choose cryptocurrency exchanges and wallets and take into consideration all possible scenarios, and seek self-custody wherever possible.

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New Non-Custodial Telegram Trading Bot Bitbot Raises $300k In First 72 Hours Of Presale

New York, USA, January 24th, 2024, Chainwire Within 72 hours of its presale launch on the 17th of January, Bitbot raised an incredible $300,000. Bitbot aims to lead the market for Telegram trading bots, a rapidly growing segment of the trading app market that has seen a considerable $7 billion in lifetime trading volume. Telegram…


New York, USA, January 24th, 2024, Chainwire

Within 72 hours of its presale launch on the 17th of January, Bitbot raised an incredible $300,000.

Bitbot aims to lead the market for Telegram trading bots, a rapidly growing segment of the trading app market that has seen a considerable $7 billion in lifetime trading volume.

Telegram trading bots let traders manage a cryptocurrency trading portfolio within Telegram’s app. In practice, this means those investors with heavy telegram usage, which of the 800 million active Telegram users is substantial, no longer need to operate across two applications to manage their trades: an exchange and the Telegram app. Furthermore, Telegram trading bots offer all of the automated trading features seen in exchange apps, bringing the best of two worlds together into one seamless package.

Bitbot’s Technical Product Advisor, Andrew Jacobs, commented: “As we experience a pivotal point in Web3’s evolution, I’m happy to announce Bitbot’s launch. Our mission is to equip retail traders with powerful institution-grade tools in a simple and intuitive trading interface that is backed by robust security. We have a great team and I am looking forward to driving the product’s evolution and meeting the Bitbot community on our regular AMAs, which will be announced on our social channels throughout the presale.”

The Bitbot team is looking to act quickly with a comparatively small $4.3 million raise target, predicting a rapid presale, with prices starting at $0.0100 and ending at $0.0200, potentially offering 100% gains for the early investors prior to the project listing. An additional incentive is the attractive proposition that Bitbot token holders will receive 50% of the company’s profits distributed as a percentage of their holdings once it launches this year.

Bitbot (BITBOT) is available to buy on the official site.

Bitbot’s Push for Mass Market Adoption

Telegram trading bots enhance convenience by enabling users to execute the entire trading process within Telegram, the preferred messaging platform for crypto, bypassing the frequently convoluted user experience associated with exchanges.

Whilst trading volumes on Telegram trading bots have been impressive, it’s obvious that there is still a majority share left in the pie currently dominated by traditional cryptocurrency exchanges. Even Bitspay, consistently ranked among the top 70 exchanges on CMC, has a volume similar to that of all the Telegram trading bots combined. The sheer scale of the opportunity becomes evident in terms of the potential market share, and it’s this kind of potential that’s driving the product and development team and Bitbot to deliver a product suitable for mass adoption.

This is arguably one of the issues with Bitbot’s competitors. Telegram trading bots can be stubbornly complex, with many relying on user commands to operate them. Furthermore, a number of security issues have plagued even the biggest players in the market, leaving a sour taste for some but a potentially very sweet upside for the Bitbot brand.

Bitbot takes both of these issues head-on. Firstly, it gets rid of the need for complex commands by offering an intuitive in-app interface that will be immediately recognisable to exchange users.

Secondly, it offers non-custodial trading, meaning users can integrate Bitbot with their cold wallets and eliminate the uncomfortable need to give up their private keys for the bot’s powerful automated trading features to kick in. This is supported by the brand’s partnership with secure custody technology developer Knightsafe, and is thus far an unprecedented offering in the Telegram trading bot market, a truly unique and innovative approach focusing on institutional-grade asset security.

The bot offers a myriad of advanced features that will appeal to both beginner and advanced traders, from copy trading to automated sniping.

Tokenomics and Presale Roadmap

As per the project’s whitepaper, the Bitbot presale will run through Q1 and see the project list on exchanges in Q2 (unless the presale sells out early, which is possible at the current trajectory).

Allocation details include 30% reserved for the presale, 20% for the development team, 14% earmarked for marketing, 3% for liquidity, 2.3% available to the community (comprising rewards and airdrops), and 10% allocated to a treasury.

The 20% designated for the development team will undergo a 1-year vesting period, ensuring long-term commitment from the team.

Bitbot’s Impressive Journey In the Crypto Market

Unibot and Banana Gun, competing trading bots, swiftly gained prominence, with Unibot’s token price passing $230 in just three months of launch. Investors in Unibot’s presale reportedly saw gains of around 200x, according to a recent CoinDesk article.

Bitbot hopes to follow in their footsteps and its impressive raise has been aided by its community, which rapidly grew over 90K followers on X and over 5100 members on its Telegram within a week of the presale’s announcement. The project is now already in Stage 2, with the token priced at $0.011 and only 9,200,000 tokens left before the price increases by 5% for Stage 3.

Bitbot hopes to attract presale investors on the heels of the recent Bitcoin ETF acceptance and increased trading activity in the cryptocurrency market. This has drawn a significant social following and been picked up by notable crypto publications like Invezz who have already listed Bitbot among their top cryptos for 2024.

About Bitbot

Bitbot is a new Telegram trading bot that aims to put institutional-grade trading tools in the hands of retail users, to enable them to trade using a variety of advanced features including sniping and copy trading.

Audited by Solid Proof, Bitbot focuses on security and follows the motto, “your keys, your assets.” To this end the project has partnered with Knightsafe to deliver the world’s first non-custodial telegram trading bot, mitigating against counterparty risk and reinforcing this with anti-MEV and anti-rug technology.

For more information and to buy Bitbot (BITBOT) users can visit Bitbot’s website.

Contact

CEO


Bitbot


[email protected]


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Ethereum Classic, Blur, and Rebel Satoshi: experts share their price predictions for early 2024

Experts are bullish on Blur (BLUR) in 2024, predicting a surge for the DeFi coin price to 2.3500 by the end of the first quarter. Price predictions for Ethereum Classic (ETC) inspire hope among investors. Top ICO experts advise investors to get in on Rebel Satoshi ($RBLZ) for the best ROI. According to crypto market experts, the…


  • Experts are bullish on Blur (BLUR) in 2024, predicting a surge for the DeFi coin price to 2.3500 by the end of the first quarter.
  • Price predictions for Ethereum Classic (ETC) inspire hope among investors.
  • Top ICO experts advise investors to get in on Rebel Satoshi ($RBLZ) for the best ROI.

According to crypto market experts, the recent Bull Run suggests that investors in top crypto coins may find success in a few projects, such as Rebel Satoshi, as well as certain top DeFi projects, such as Blur and Ethereum Classic. 

Let’s look at what sets $RBLZ apart from the crowd of altcoins, like BLUR, ETC, as one of the best cryptos to buy in early 2024. 

Analysts predict a significant uptick for BLUR

As of December 18, OKX’s NFT platform outperformed the 24-hour trading volume of Blur, a well-known NFT marketplace. However, two weeks later, the Blur marketplace has recovered, accruing more volume to claim second spot among the NFT marketplaces in terms of volume. 

Following these developments, the value of BLUR has risen. The value of Blur on December 18 was $0.4324. Since then, the BLUR token price has risen to $0.6664 on January 19, indicating a 54.12% increase. Experts are pleased with these developments and have predicted that the price will rise further to $2.3500 by the end of the first quarter.

On the contrary, in their price forecasts, some other BLUR analysts have cited price volatility as the reason why BLUR will decline in value to $0.1600 by the end of the first quarter. 

ETC surges after the dissolving of ETHW Dev team

Recent news reports from the Ethereum Classic ecosystem claim that the Ethereum Proof of Work’s main development team was dissolved on December 19 to transition to community governance. This has translated to a proposal for a similar action for Ethereum Classic. 

The value of ETC on December 19 was $19.71. In the two weeks since then, the DeFi coin price has risen to $24.75 on January 19, indicating a 25.57% increase in ETC’s valuation.

Regarding the ETC price prediction, experts on Ethereum Classic have expressed satisfaction over these developments and have predicted that the value of ETC will see a further rise to $40.00 by the end of March.

Conversely, some other analysts of Ethereum Classic have cited the lack of partnerships in the Ethereum Classic ecosystem as the reason why ETC could decline in value to $15.50 by the end of March.

Rebel Satoshi (RBLZ) continues to rise in presale

Rebel Satoshi has distinguished itself as an interesting investment option among a sea of cryptocurrency meme currencies. This meme coin, inspired by Satoshi Nakamoto and Guy Fawkes, has piqued investors’ interest even in the pre-sale stage. Rebel Satoshi’s native token, $RBLZ, aims to usher in a new era of decentralization. Its goal is to create a community that allows underdogs to collectively oppose centralized systems.

Rebel Satoshi‘s native coin, $RBLZ, has set presale records as the Early Bird Round 1 and Rebels Round 2 sold out completely in 10 and 15 days, respectively. Additionally, in the just finished Citizens Round 3, $RBLZ traded for $0.020. Over 120 million $RBLZ tokens have been sold thus far, with the Monarchs Round 4 of the Rebel Satoshi presale currently underway, seeing $RBLZ valued at $0.022.

This pricing provides a 120% ROI for those who bought $RBLZ at the $0.010 Early Bird Round price. When $RBLZ reaches its listing price of $0.025 in February, it will reward early investors with a 150% ROI. 

For the latest updates and more information, visit the official Rebel Satoshi Presale Website or contact Rebel Red via Telegram.


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BIS unveils 2024 strategy: focus on CBDCs and tokenization

BIS’s 2024 Strategy Unveiled: CBDCs and Tokenization Key Focus. Project Promissa to digitize Promissory Notes using blockchain tech. Project Aurum advances CBDC privacy in retail payments with HKMA. The Bank for International Settlements (BIS) is set to make significant strides in digital currency research, emphasizing central bank digital currencies (CBDCs) and tokenization in its 2024…


  • BIS’s 2024 Strategy Unveiled: CBDCs and Tokenization Key Focus.
  • Project Promissa to digitize Promissory Notes using blockchain tech.
  • Project Aurum advances CBDC privacy in retail payments with HKMA.

The Bank for International Settlements (BIS) is set to make significant strides in digital currency research, emphasizing central bank digital currencies (CBDCs) and tokenization in its 2024 strategy.

The BIS Innovation Hub has outlined a comprehensive program, featuring six new projects, exploring cybersecurity, financial crime, CBDCs, and green finance. Among the key initiatives are the second phase of Project Aurum and the launch of a blockchain-based tokenization project, Project Promissa.

Project Promissa: revolutionizing financial instruments with tokenization

Project Promissa, a collaborative effort involving BIS, the Swiss National Bank, and the World Bank, aims to usher in a new era for financial instruments. Focusing on digitizing promissory notes, a traditional yet paper-based financial commitment, the project leverages blockchain technology to enhance transparency and simplify management.

This proof-of-concept platform is set to revolutionize the handling of promissory notes by digitizing them, aligning with the BIS’s commitment to exploring innovative solutions in the realm of tokenization. The initiative is anticipated to conclude its proof-of-concept phase by early 2025.

Project Aurum: advancing CBDC privacy in retail payments

Building on the success of its wholesale interbank system and retail CBDC prototype in 2022, Project Aurum, conducted jointly by BIS and the Hong Kong Monetary Authority (HKMA), progresses into its next phase.

The project explores the privacy aspects of retail payments using CBDCs. With the HKMA’s achievements in developing a robust foundation for Aurum, the research now delves deeper into understanding the intricacies of privacy in retail CBDC payments. This initiative aligns with the broader BIS strategy, highlighting the pivotal role of CBDCs in the evolving landscape of digital currencies.

BIS’ additional initiatives

Alongside tokenization and CBDC-focused projects, BIS introduces four other initiatives – Project Leap, Project Symbiosis, Project Hertha, and Project NGFS Data Directory 2.0 – addressing cybersecurity, green finance, and financial crime.

These projects underscore BIS’s commitment to a multifaceted approach to shaping the future of financial technology. Additionally, the continued focus on projects like Mandala, Pyxtrail, and Cambridge showcases BIS’s dedication to innovation, automation, and experimentation across diverse aspects of the financial industry.


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