Why it's a good thing that Bitcoin prices are dropping and why you should be absolutely ecstatic and glad that Bitcoin prices are falling. In fact, there are three important reasons why it's a good thing that Bitcoin's and many other cryptocurrency's prices are also dropping.

I'm hoping whether you are a bitcoin investor or a hardcore believer, I hope you'll agree with me that the drop in bitcoin is NECESSARY for its long-term potential and recovery higher why this drop is a good thing.

*There are three important reasons for this.*

## 1. Gamblers Need To EXIT the Market

Gamblers, people who bought bitcoin for no other reason than to try and get rich quick. I'm talking about people who essentially bought bitcoin because they've heard about them as they were skyrocketing above `$15,000, $18,000`, and then they thought, well, I don't want to miss out on this, so they bought Bitcoin at nearly `$20,000` or `$19,000` and of course they are now sitting in about a 70% hole as it dropped.

So I am talking about these kinds of people because these are essentially the people *who have absolutely no interest in Bitcoin itself*, these are people who did not care whatsoever what bitcoin was. They heard about bitcoin on the news, social media from their friends seeing them making money in Bitcoin and they decided to but Bitcoin, ***not because of it's potential, not because of what it was but purely as a get rich quick idea***.
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>  The fastest way to go broke is to try and get rich quick.
>*`Paul Eliot`*

In other words, we are talking about people who bought bitcoin like a `lottery ticket` as a way to simply become extremely rich. Now don't get me wrong here, there are some smart people who've become very rich in bitcoin and cryptocurrencies but those are the smart folks who bought bitcoin the right time. But the folks who have absolutely no interest in Bitcoin other than to get rich quick, you know the gamblers I'm talking about, the deadwood, we need this deadwood who bought bitcoin at the wrong time, we need them to exit the market, we need them to disappear from the market. And until they do so it is unlikely the bitcoin is going to bottom and I think we're coming very close to that situation when they're going to exit the market.

**`So remember, we need the lottery get rich quick to exit the market, simple is that.`**

## 2. Teaching An Important Lesson on RISK

The second reason why it's a good thing that Bitcoin prices are dropping is that it's going to teach those folks who essentially bought bitcoin as no other thing than to get rich quick, it's going to teach me an important lesson on RISK.

If there's one thing, I hope those folks will learn is to ***learn to respect RISK**.
I think you'll agree with me, especially when you look at your friends on social media that a lot of them don't actually care about risk at all.
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` When bitcoin prices were skyrocketing to 19 or 20 thousand, a lot of people were saying oh yeah bitcoin is going to go to a hundred thousand, fifty thousand, two hundred thousand, but how many of them actually were saying, "hey you know what, how much could they lose here?".`

So a lot of people simply do not care about risk, they have not learned their lessons of what happens when you don't respect risk. They have never been punished by the market when you don't care about risk. And you know what that this drop is going to teach them an important lesson which many of us have also learned this lesson personally.

> ***I myself have suffered the consequences of what happens when you do not respect risk and you don't care about respecting the market.***

If you read the book **Market Wizards** by Jack Schwager, a lot of the great investors have themselves make mistakes, have themselves lost a lot of money in their own investments and it's taught them a great lesson.

So, I am hoping that a lot of the folks out there who bought bitcoin at the wrong time and have lost money, I hope they are going to learn their own lesson to respect risk and respect the market as well.

## Fear Creating Buying Opportunity

The third important reason why you should be glad that bitcoin prices are falling. Because all markets go through cycles, they go through bull cycles and bear cycles and also they go through cycles when fear and greed are at their extreme points.
So near the top, there's greed and near the bottom, there's a lot of fear.
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So as bitcoin prices have been dropping, the sentiment has now turned against bitcoin. If you, for example, observe what people are saying on social media about bitcoin, what are your own friends saying about bitcoin right now on Facebook or other places, a lot of the sentiment is extremely negative, people are calling for lower and lower prices. When you compare that to December when people were calling for higher and higher prices, that was the worst time to buy bitcoin.

So remember, do you pay attention to what folks are saying on social media and try to do the opposite. The majority of your friends and people you know are extremely bullish on a particular market like bitcoin or other cryptocurrencies then try and do the opposite.

If you take a look at the statistics from Google Trends, people have lost interest in bitcoin. Interest or buying in bitcoin peaked in December and that interest has just plunged now.
<center>![4.PNG](https://steemitimages.com/DQmaZAirGRyTwa8qsTMPoTDcSkm9UNjuLKLUhm4AuBd7xZR/4.PNG)</center>

So the majority of folks out there, the dumb money have lost interest in bitcoin, that's a good thing. Remember, as a contrarian you want to do the opposite of everybody else, that's a fantastic thing. That also produces for us the best buying opportunities. We want to buy bitcoin when it's cheap, not when it's expensive, we want to buy them at those turning points, the fantastic turning points.

Apart from losing interest in bitcoin, people lost interest in other cryptocurrencies too.

So the fact that the cycle is not turning and a lot of people are extremely fearful, it's a good thing, it's a fantastic thing because it means that we're coming close to that turning point when finally we see the prices returning and going back up again.

According to a top trader Paul Tudor Jones in his book Market Wizards, 

> *I believe the very best money is made at the market turns. To some extent, to be a good trader, you have to be a contrarian.*

You have got to do the opposite of the herd, you have got to do the opposite everybody else if everybody is moving one way try and go the other way. You're likely to be far more successful in what you are doing especially when it comes to investing by doing the opposite of the masses.

In other words,

> Buy when everyone is afraid and sell when others are excited with greed.

Having said that though, that does not mean that we just want to buy willy-nilly just because prices are dropping. Remember, we don't want to catch a falling knife either, so what we want to do is look at the charts and try to determine the best possible situation for us to buy with the lowest amount of risk.

So that's why it's important to be patient and see how bitcoin prices are going to react after it's lows. 

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