A man upped sticks, sold everything he had for Bitcoin and moved his family to a campsite after claiming that he is waiting for the next “boom” in cryptocurrencies.
Didi Taihuttu, 39, moved his family to a campsite outside of Venlo in the Netherlands, after putting his house on the market along with other possessions including his car, motorbike, children’s toys and other family consumables.
Bitcoin and Blockchain, the technology behind the currency, eliminates the need for a third party such as a bank or building society to approve payments, as a network of computers keeps a record of all transactions.
The Dutchman believes that the technology is transforming the role of banks in society – and that there is more to be made from the emerging currency.
Every time there is a crash in cryptocurrencies, the alarm bells ring out and panic often ensues.
People predict the end, see the bubble popping and sell off for a loss.
However, there is another way to look at it, and that is to see a significant drop as a buying opportunity and a chance to profit.
How to profit
There are a few ways to try and cash in on a sharp fall in price of cryptocurrencies. Some are more effective than others, and some more suitable for different types of crashes or currencies. It is up to the investor to decide.
There are five methods described below that can help turn a sickening crash into a chance to make more money than before.
A lot of these methods are well known, and almost cliched, but the real difficulty is not simply knowing them, it is being brave enough to enact them in the face of a collapsing market.
American tech billionaire investor and television personality Mark Cuban has recently claimed that he sees Bitcoin and its underlying Blockchain or distributed ledger technology (DLT) as the way of the future.
He also countered the various claims that the leading digital currency is not real and has no intrinsic value.
In an interview with Bloomberg, the renowned American businessman claimed that Bitcoin is just like the traditional stocks that investors can buy and sell.
“…it’s interesting because I think there are a lot of assets that have values based on just supply and demand. You know, most stocks, they don’t have any intrinsic value, no true ownership rights, no voting rights, you just have the ability to buy and sell those stocks. They’re like baseball cards and I think Bitcoin is the same thing…”
The CEO of the world’s largest asset manager sees “huge opportunities” for cryptocurrencies – but argues that work needs to be done before they become more widely accepted.
In a new interview with Bloomberg TV, BlackRock chief Larry Fink said that he’s a “big believer”, but that the current market today is primarily focused on speculation. His comments come months after the firm’s chief strategist said that, to him, the cryptocurrency market charts at the time looked “pretty scary.”
Fink said in the interview:
“Related to cryptocurrencies, I’m a big believer in the potential of what a cryptocurrency can do. You see huge opportunities, but what we’re talking about today, it’s much more of a speculative platform, people are speculating on it.”