When Will Crypto Go ‘FOMO’?

We see it everywhere.

From buying concert tickets, to property and share market booms. I mean really, do you honestly want to see Beyoncé with a view worth $200 from the back?

The fear of missing out, more commonly referred to as ‘FOMO’, typically happens when the public panics and when the irrational hope of getting rich quick overcomes normal conservatism.

As you might recall, the world saw crazy FOMO investing in crypto at the end of 2017.

The Bitcoin-driven market started in early 2017 at about $900. By mid-November, it was fluctuating between $6000 and $7000, and everyone thought ‘enough was enough’. But then FOMO kicked in, and just six weeks later the price was at $20,000.

It was labelled ‘FOMO’ because that was the only thing driving it. No one understood the technology and few truly believed in its use case. People just assumed that by buying it, they would get rich.

Bitcoin was all over the news. Homer Simpson was talking about it. Fools were rushing in. But then it slumped in 2018 to only $3000. Not dramatically, just a slow death over the year and the public interest died along with it.

However, now Bitcoin has started its new boom.

Driven by new money from financial organisations, the price of Bitcoin should have slowed at $8000, but rocketed to $13,700 before correcting. Rapidly rising exchange volumes indicate that traders have poured back in but in reality, they don’t have the confidence to really drive this market. Essentially, it is the massive investment cash from financial organisations that is pushing these price increases.

If like me, you agree with the ‘Bitcoin is the new digital gold’ story, then you can believe a possible Bitcoin value of $100,000 per coin. This is the true buzz of the market. 10 times growth when other assets like shares and property look unlikely to deliver even positive returns.

No one knows what the trigger for FOMO will be. My guess is a price of over US$20,000 per coin.

Everything is being driven by Bitcoin. Its value share of all crypto has jumped from 50% to 62% recently. People sell alts and buy Bitcoin. Smart.

Below $20,000, I see that for every commentator saying ‘this is going up’, there will be another saying ‘we have seen this before and you’ll get caught like everyone last time’. That’s enough for enough of the public to hesitate. So no FOMO. But I think the day it properly breaches $20,000, there will be the paradigm shift.

FOMO kicks in and buying will go mad. A feeding frenzy.

And this time around, there will be little time to respond. Last time, it took 45 days to hit the $20,000 peak. This time it should go faster, as it’s now easier to become involved. Take Dacxi’s platform for example. It’s so simple, and anyone can afford to join.

In Australia, I believe 5 million people will join, up from the 500,000 involved today.

At Dacxi, the average order is $2000, so a total of $10 billion could be invested. We are talking about individual investors. In the UK, 10 million will join. And if you think this is crazy, it won’t come close to the mayhem that the Asian market will become, with tens of thousands joining within a few months.

The tipping point I predict will be Bitcoin confidently breaching $20,000, and then the tidal wave of money jumping into the market, followed by endless media coverage and comment.

I wouldn’t be surprised if we will breach $20,000 in Q4 2019.

The market tried to breach $9,000, $10,000 and $11,000 in June this year and it easily pushed through. $14,000 will be difficult to breach and $20,000 will be a tough ceiling. Yet, there is too much money coming into this space through the new platforms.

There are crazy times ahead. If you are not fully invested, it would be a good idea to act now. I think the downside risk is negligible, and there is increasingly less excitement in alternative investment options like shares, property and bank deposits.

If you’re interested in an easy way to get started, take a look at dacxi.com. Here, you’ll be able to start investing for as little as AU$100 on a platform you know you can trust. Dacxi’s bundle product offers new investors a diversified portfolio of the top three most trusted crypto assets (Bitcoin, Ethereum and Litecoin) plus Dacxi’s DAC Coin (the coin of the Dacxi Ecosystem) in fixed percentages. As well as this, Dacxi offers a DAC Pack which consists of just DAC Coins. Many buy this because they believe that the DAC Coin has the potential to increase in value many times more than the big blue chip coins. The coin’s value comes from premium Dacxi Community benefits, Dacxi offerings and discounts on trading.

So, what are you waiting for?