I Don’t Know Much About Crypto, But Bitcoin FOMO Is Killing Me Right Now
I know extraordinarily little about blockchain and crypto.
There is a ledger, a lot of numbers, and a bunch of dudes in China burning through electricity in an underground warehouse to mine these sought-after digital coins.
But despite knowing zilch about this decentralized form of currency, boy am I feeling the FEAR OF MISSING OUT right now as Bitcoin just smashed through the $6,400 ceiling today.
Is it time to buy? Is the currency getting ready for another run to $20,000?
I have no idea, but I think it’s safe to say that no stock has ever given investors with such little experience investing such a rush.
Before Bitcoin, I had never really invested in the stock market, not because I didn’t want to, but because I didn’t really have enough money other than to buy a few meaningless shares of some company and maybe watch them go up $10 in the next year or two and make $50.
Let’s be real, who the fuck wants to do that?
I got in on Bitcoin not super early, but right before the big big rush. I had been hearing a lot about it and I figured, why not, let’s try some speculative investing.
I bought one Ethereum for around $350, two Litecoins for $120 and a fraction of a bitcoin, maybe only $100 worth of one (Oh, and let’s not forget about those 50 Ripple I bought that are now lost in some digital wallet in the Internet wasteland).
But what happened over the next few months after my initial purchase was a wild ride.
Bitcoin went from in the $5,000s to about $20,000; Ethereum shot up at one point to $1,300 or $1,400 and Litecoin rose into the mid $300s.
All of a sudden, my Bitcoin portfolio — yea I was throwing around words like portfolio at this point —had gone from $570 to close to $2,000.
Everyone in their mother was getting in on Bitcoin and the other cryptos. My friends stopped sports gambling and threw some of their money into crypto — it was just too easy.
I was flying high, but couldn’t pull out because there were articles projecting Bitcoin to hit $100,000 in a few years.
What an idiot I would be if I pulled out now, I thought at the time. That’s equivalent to selling Microsoft stock before the company was really Microsoft.
When the market eventually corrected itself, I didn’t lose everything.
I had pulled out some of my initial investments and was only down like $300 or something, and I figured, at this point, whatever, might as well leave the rest in just in case.
But I also swore I would be smarter the next time around, or at least put some kind of realistic expectations or goal on my investment.
After all, if something is to good to be true than it probably is.
Yet here we are on the cusp of another run and I am aching to pull the trigger on some more Bitcoin or Ethereum or EOS or whatever the next hot currency is.
Bitcoin has surpassed the almighty $6,200 that experts were saying was a critical point in its recent journey, and there are more articles with experts predicting it to get back to around $20,000 by 2021.
Also, the currency has kept going up despite bad news, as Marketplace noted recently:
Binance, one of the largest cryptocurrency exchanges said on Tuesday that hackers stole more than $40 million worth of bitcoin. And on April 26, the New York Attorney General accused crypto exchange Bitfinex and Tether of an $850 million coverup.
Jim Iuorio, managing director of TJM Institutional Services, and a veteran futures and options trader, said on CNBC that Bitcoin FOMO has already started, as reported by The Daily Hodl:
“I do think it does. And I think it’s mostly an emotional trade. I think it’s FOMO. People missed out when it traded up to $20,000. I think the psychology behind it could be the same now. When it eclipsed $4,000, I think that started to kick in mildly. If it eclipses $6,000 again, it might happen again.”
“If it trades back to $5,810 in the June contract, I think that’s a spot to buy. One of the things I liked is that earlier in the day it tried to plunge the lows and it was immediately rejected. To me, it seems like the upside is the easiest path with a target of $6,060 on the upside.”
Some people who were in last time may decide to sit this one out due to the currency’s past volatility, but others who missed out may be ready to take the plunge.
I was kind of in last time with a few hundred dollars, but now I am completely torn on whether to even throw that much in.
I was thinking about pulling the trigger a few days ago when the price of Bitcoin had hit $5,800. Now, it’s already at $6,400, and I’m kicking myself, but still can’t pull the trigger.
During Bitcoin’s last run, I got in sometime after the people who had some knowledge of the currency from a technical perspective and before the people who had never heard of it all.
Based on that and the fact that I’m having hardcore FOMO right now, my guess is that the Bitcoin FOMO train could start picking up some serious steam real soon.