Our Crash the Bitcoin Crash of 2017
Lets own it. Lets call it "our crash", the Bitcoin bubble of 2017. We should in fact be proud!
BTC started the off 2017 at $997.69 USD, and rose up through the summer to $2452.00 USD in June and got hyper inflated in the autumn. People saw their fortunes rise like nothing had in our lifetimes. It was a bubble, and the media said as much. The valuation of BTC didn't merit the rise in market value.
A week before Christmas BTC was trading at almost $20,000 USD, and the smart people who knew the market was overvalued got out. This caused the price to drop 40% in a week. Down 65% after 40 days.
Our crash was 40% in a week. The 1929 Wall Street Crash lost 36% in two months; people panicked and banks called in their debts. Fearing the enormous debt, economies the world over collapsed under their own debt. The 2008 Derivatives crash was 21% in a week; and people, banks and other corporations sold everything they could in order to escape the debt.
Our crash didn't involve banks however. The debt mongers hadn't yet found their way into the crypto market. No banks meant that the market wasn't controlled by debt.
And then something miraculous happened. A presumably inebriated holiday reveller getting back to his computer and seeing the crash happening live, typed HODL into a forum and pressed enter. The people, the market, exchanges and brokers held their breath and stopped dumping. The order to HODL saved the market from collapse.
In 1929 many rich people had pumped money back into the market, in order to try to save it. But their efforts failed when banks started calling in their debts early. The market didn't have the time to recover and their actions, more than any others, resulted in the Great Depression.
In our crash, there were no banks and no resulting debt crisis. Enough people held their positions that the market was able to stabilise at a value far greater that it had been even in the previous year.
No banks meant no debt crisis, and no debt crisis meant no crash. BTC had burst its first bubble, and come through with an even greater market capitalization. The whole world learned a lesson in the valuation of crypto-assets, a lesson which will stay with us for a long time to come.
Yeah, it was our crash. Lets own it!