Last year, Bitcoin received nearly $ 20,000 – everywhere was reading about the new digital (money) era and predicting swift price increases of up to $ 100,000.
If you look at the latest news, you will find that almost exclusively negative reports are made about Crypto-currencies like Bitcoin. What happened to similar developments in the past? And should traders really keep their fingers off the digital currency, or can investment be worthwhile?
Current reports are reminiscent of the 2008 financial crisis
On closer inspection, it can be seen that news – and public opinion in general – is often “pro-cyclical”: when prices are high, it is advised to continue buying. On the other hand, it is recommended to sell in falling markets.
How wrong this approach is, for example during the financial crisis in 2008 showed: At that time, the US Dow Jones index has fallen below 7,000 points. Even at this time, the media reported only negatively on the stock markets. Overall, the reporting from then strongly resembles the messages that can be read at the moment about the Bitcoin. ...CONTINUE READING