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Cover image for Why Snowden said he would buy Bitcoin NOW! ๐Ÿ˜•

Why Snowden said he would buy Bitcoin NOW! ๐Ÿ˜•

mustafaanaskh99 profile image Mustafa Anas ใƒป5 min read

The market crashed, investors panicked. Cryptocurrencies sold. Value decreased

(disclaimer: I am not a financial or trade expert. If you want to invest in crypto, seek the advice of an expert. I am just always eager to speak my mind)

You probably all heard the news about the recent huge market crash. The fear of corona virus becoming pandemic lead to the market crash. Investors and holders panicked and sold their shares which lead to a huge decrease in the marketโ€™s value. Sure enough, cryptocurrencies also depend on the current economyโ€™s situation so they also got the hit. Bitcoin has lost 30% of its value this week. This is also due crypto investors panicking and bailing out without reasoning. An expected behaviour in the time of crisis. However, is this really that bad for the crypto market?

It is all about supply and demand

The former CIA agent and whistleblower Edward Snowden tweeted yesterday that this is the first time he really felt the urge to buy Bitcoin. WAIT a sec, I thought everybody panicked and bailed out!

Snowden did not yet elaborate more about that, but for me it seemed intuitive. The covid-19 outbreak hit first and strong in China. China has 81% of Bitcoin mining firms. Some of these firms had to shut down due to some lockdowns and health advice. Which resulted in a shorter supply in Bitcoin. On the other hand, A LOT (sorry I dont have the numbers - google it) of crypto owners wanted to get their money out before it gets worse, which lead to even a bigger crash in the value of Bitcoin (same applies for other cryptocurrencies, their values are also correlated with Bitcoinโ€™s). This sure is bad news for BTC owners, however, it opens a window for you to have the chance of buying cryptocurrencies at much lower rate. I know the situation currently seems down, but at some point, the market is going to recover and you do not want to miss the opportunity.

The money that is now being frozen for a further notice, is eventually going to find its way into investment. After the current crash of the stocks, maybe crypto might seem a safer option for the future. IF this happens, most currencies values will jump up again. They will be more demand and greater value.

But is that all we gamble on?

Blockchains development back cryptocurrencies

Cryptocurrencies are a product of blockchain development. Believe it or not, Ethereum is not just the currency you read about in your newspaper. Ethereum has a lot of products built on top of it now (and some other blockchains and cryptocurrencies). This type of development is aiming to form a totally new system in which we transfer data and money. The new internet (Web 3.0 is it is called now) is going to be completely based on decentralized systems that protect and secure your data and transactions online. How do we know this is really gonna happen though?

Blockchain development is radically increasing. Libra supporters bailed out.

The nature of blockchain scares the core of the financial industry. Companies and banks will be useless if this system is in place. Big financial companies realize that now and they are trying to take part of it before it is too late. Facebook has been working on a decentralized coin called Libra. Which allows users to transfer money online in seconds and with zero cost (Basically another monitored cryptocurrencies). Companies like PayPal, MasterCard, Vis, eBay, Stripe and many others supported Libra hoping they would have a cut if it succeeds in the future. But guess what, After the current crisis, most of Libra backers bailed out to support other blockchain financial solutions. Some of which are open source. If you follow up and monitor the situation closely, you will get the feeling that this is a real battle for dominating the new market and industry that will be based on blockchain development and will use cryptocurrencies to manage finances. It is now that all these firms have to make future changing decisions. Either die or get the glory.

It is time we support blockchain for the ethics of it

I am no financial expert nor experienced trader. The reason I am writing this article is not to help you double or triple your todayโ€™s investment in few years. I am advocating blockchains because I believe in the better future it will provide us. This is the one thing I am always ready to gamble on, even if it means I will be losing money for a while. I know in the heart that in a few years I will be happy with todayโ€™s decision of supporting cryptocurrencies and the development of decentralized internet. Great success do not come from safe decisions. Risk is always involved. So please, if you are looking to gain money, find a trader and consult with them.

So why is Snowden buying now again?

Remember a couple of years ago when a guy talked about how he bought pizza for 3 bitcoins? Few years later, he realized that the pizza cost him around 60,000$. At this point though Bitcoin will never be as cheap as that, but it will surely become way more expensive than it used to be. It might be a stretch or a wild guess, but experts predict BTC to reach 150,000$ by 2025. No one really knows what is going to happen. It is time you read and reason why you should take part of crypto owning before it is too late.

I personally set aside a portion of my monthly income and buy some Litecoin or Ethereum with it. I know that I want to save this money for my future and I want to be by the side of the new industry while it evolves.

There are a lot of ways you could get cryptocurrencies. There are mainstream platforms that you can just google, visit, buy some, store it for later. Different platforms offer different fees. I live in Canada so I mostly use a platform called Newton.co. It is completely free to deposit money, buy crypto, then withdraw your money. It is just slower than other platforms (works for me for the long term investment!). If you deposit X$ today, you can immediately buy crypto worth X$, but you just cannot withdraw until four days or so (just so they actually process the transfer from your bank account). For faster monthly investments, I use the famous Coinbase platform. They have some annoying fees but it is instantaneous. Both platforms have a verification process just to make sure you are who you are, so it is safe for everybody.

I am on a lifetime mission to support and contribute to the general knowledge of the web community as much as possible. Some of my writings might sound too silly, or too difficult, but no knowledge is ever useless.If you like my articles, feel free to help me keep writing by getting me coffee :)

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Mustafa Anas

@mustafaanaskh99

Full-Stack Web Developer. main stack: MongoDB, Expressjs, Reactjs, Nodejs, and GraphQL (some React Native and Flutter too)

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