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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 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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Mint-free OKX Football Cup NFTs for group stage games enter the second round

The second round of group-stage games at the FIFA World Cup 2022 began today. Users can still mint free OKX Football Cup NFTs until the FIFA 2022 Group stage ends Get a chance to redeem stakes and collect rewards by December 20. FIFA World Cup group stage games enter the second round The second round…

  • The second round of group-stage games at the FIFA World Cup 2022 began today.
  • Users can still mint free OKX Football Cup NFTs until the FIFA 2022 Group stage ends

  • Get a chance to redeem stakes and collect rewards by December 20.

FIFA World Cup group stage games enter the second round

The second round of the group stage games for the FIFA World Cup in Qatar is underway. There were some big upsets in the first round, with Saudi Arabia winning against Argentina and Germany losing against Japan.

The second round of games started today and the chances for the host nation to qualify for the knockout round are virtually nonexistent.

You have the chance to get OKX Football NFTs for free as the world cup continues. A week ago, crypto exchange OKX announced the launch of its NFT Football Cup.

The OKX Football Cup is part of the crypto exchange’s ‘The OKX Football Festival,’ and it is giving millions of fans around the world the opportunity to earn from a great prize pool.

With this competition, users can mint free NFTs of their preferred teams and use the NFTs to predict matches and stand a chance to win huge prizes.

NFT minting will end after the group stages

The free minting of the NFTs began on November 21st and will end on December 3rd. All users can participate in minting as long as there are group stages. Users must stake 0.01 for each mint. 01 ETH. You can create up to three teams prior to the group stage. With the first round of games producing some shocking results, you can look at the tables so far and partake in the OKX Football Cup.

Each match offers a fixed prize pool of 20,000 USDT. OKX revealed that it adds 10 USDT for every NFT minted, thus, growing the prize pool.

As an NFT owner, you will earn a share of the $20k in USDT if your team wins a match. However, when the teams draw, each side will share $10,000 in USDT

Participants will also have the option of redeeming their full stakes at the completion of the OKX Football Cup.

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BNB recovers above a critical level. Do we need to wait for another bullish push?

Binance token rose by 17% on Wednesday. The crypto exchange has announced the sale of HOOK tokens on Binance Launchpad. BNB eyes $330 next and is a buy on a retracement As Binance coin (BNB/USD) slipped below $266, it signalled the start of a bearish market. Since July, BNB has maintained the level and any…

  • Binance token rose by 17% on Wednesday.

  • The crypto exchange has announced the sale of HOOK tokens on Binance Launchpad.

  • BNB eyes $330 next and is a buy on a retracement

As Binance coin (BNB/USD) slipped below $266, it signalled the start of a bearish market. Since July, BNB has maintained the level and any decline below could have given bears complete control. However, it is now not the case as BNB trades at $295, well above the crucial level. It is possible that cryptocurrency may be heading for the next level. What happened then?

The gains in BNB happened after November 23 cryptocurrency news. BNB’s price rose by 17% on the day after the exchange announced the Hooked Protocol (HOOK) token sale on Binance Launchpad. This is the 29th project launching on Binance Launchpad.

According to the announcement, the token sale will occur through a lottery and conclude on December 1. 25 million HOOK coins have been allocated to the launchpad, equivalent to 5% of the total supply.

This latest development comes as Binance continues to reassure users following the collapse of FTX. Binance announced Thursday that it would contribute $1 billion to help protect crypto-related firms. Binance has committed to increasing this amount if necessary and will look to include traditional financial institutions. This fund is the result of a series of measures that are designed to ensure users have sufficient reserves in case of a crypto confidence crisis.

BNB price action as token hits a 2-week high

BNB/USD Chart by TradingView

BNB rose from a low of around $250 to a 2-week high of $303. The $266 has been re-established as the immediate support for the cryptocurrency.

A bullish MACD crossover was initiated after the bullish push. The RSI also moved above its midpoint, which suggests that BNB has attracted a lot more buyers since the breakout. The cryptocurrency is consolidating ahead the next move.

Should you buy BNB now?

Buyers may not be done with BNB, with the area around $330 and $360 as the next target. However, if intending to buy BNB, wait for some correction to snap it lower. This consolidation could lead to a correction before the next bullish leg.

Where to buy BNB


eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users have the ability to connect with, learn, copy, or get copied from other users.

Buy BNB with eToro today


Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.

Binance is known for its low trading fees and multiple trading options. These include margin trading, peer-to-peer, spot trading, and margin trading.

Buy BNB with Binance today

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Bitcoin Mining Pool Suffers $3 Million Cyberattack

Bitcoin Mining Pool Suffers $3 Million Cyberattack

A major cryptocurrency mining pool was attacked by hackers in early March, according to the pool’s owner. The hackers stole digital assets worth $3 million from the pool and its clients.

Chinese Authorities Open Investigation into Crypto Mining Pool Hack

A subsidiary of Bit Mining, a coin minting company, was the victim in a hacking attack. The company released a press release. The affected entity is a leading bitcoin mining pool,, which in the past week accounted for over 2.5% of the pool distribution and has a share exceeding 4% on annual basis.

According to the announcement published Monday, Dec. 26, the platform was hit on Dec. 3, 2022. As a result, $2.3 million worth of digital assets owned by the company and another $700,000 in asset value belonging to its clients were stolen.

The cyberattack has been reported to law enforcement in Shenzhen, China on Dec. 23. With the support of other agencies Bit Mining highlighted that the Chinese authorities are investigating the incident and collecting evidence.

The company will devote considerable efforts to recover the stolen digital assets.

The mining company stated that certain crypto assets of were already secured. It pointed out that it had implemented technology to better intercept and block hackers after discovering the breach. is currently operating its business as usual, and apart from its digital asset services, its client fund services are unaffected.

Besides the top-10 mining pool, which provides mining services for bitcoin (BTC), ether (ETH), and litecoin (LTC), Bit Mining Limited also owns the mining device manufacturer Bee Computing and operates coin minting facilities.

Since the Chinese government cracked down on the industry in the spring of 2021, Bit Mining has sought to expand its activities in Kazakhstan, which has become a major crypto mining hotspot. In August of this year, the company announced it had secured a $9.3 million registered direct offering from institutional investors.

What are your thoughts on the hacking attack against the bitcoin mining pool Please leave your thoughts in the comments below.

Lubomir Tassev

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or related to the use or reliance of any content, goods, or services in this article.

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