Short Term Price Drops, Sudden Or Otherwise, Are Irrelevant Says John McAfee
Technology leader and crypto influencer John McAfee tweeted on Monday evening that crypto price fluctuations in the short run are irrelevant. He urged investors to never panic in case of sudden price drops and asked them to check prices every two or three months.
Do not, under any crcumstances, panic at any drop in price, sudden or otherwise. Surely I have demonstrated that short term fluctuations have absolutely no meaning. Just check the price once every two or three months if you want to be pleased each time you check.
— John McAfee (@officialmcafee) May 13, 2019
In fact, McAfee’s argument against the relevance of short term price fluctuations is also applicable to sudden price hikes. The crypto boom in the second half of 2017, followed by a devastating 2018 is a classic example of McAfee’s claim. The sudden price fluctuations, both upwards and downwards, hurt only to those who were looking for short term trade benefits. Those who stayed for long got the minimal brunt.
McAfee has been a long time promoter of cryptocurrencies and blockchain technology. He argues that applying stock and equity market tactics to crypto trading will never be fruitful. McAfee is famous for not holding back while voicing his opinions candidly. When asked about short termers, he stated that it wasn’t his job to smarten people.
Not my responsibility to smarten people up. Short termers and short sellers are acting on traditional stock market principles. It more or less approximates the current crypto market because (F)unctional value ≈ 0. As (F) grows, traditional formulas will become impotent.
— John McAfee (@officialmcafee) May 13, 2019
The world-renowned computer programmer was among the earliest promoters of Bitcoin and DLT and has been supporting the digital currency space ever since. He was also among the firsts to reject Craig Wright’s claim of being Satoshi Nakamoto. He has been all guns blazing against the US government intervention in the crypto space and has also been criticizing various crypto companies, including Binance Exchange.
Before urging people not to be influenced by short term price fluctuations, McAfee showed how price changes overnight. On Monday, he tweeted how the price, which was falling below $7,000, suddenly shot up to $7,400 the very next morning.
It's hilarious how people look at a few hours change in the market and somehow believe it matters. Last night the headlines were Bitcoin FALLS below $7,000. This morning – $7,400. Long term is all there is folks. pic.twitter.com/2WlPnu1cT7
— John McAfee (@officialmcafee) May 13, 2019
Market volatility has been one of the main problems which the crypto markets face across the globe. The issue can be dealt with to a great extent if investors show more patience than equity markets.
