“What goes up comes down”
This is a long old saying. It has a very simple meaning. It has happened, is happening and will always happen. It is the fundamental of economics.
When we see the history, what rocketed up will eventually come down. There was a technological boom which crashed in 2000, housing market boom which crashed in 2008 and also a bitcoin crash in 2013.
I would like to focus in the crash of 2000. In 2000 the crash was due to lack of income of the technological companies. The price of companies of that time went up just because of demand supply. The companies had a ton of users but they had no income. Debt was also a huge problem to the companies.
What you need to ask yourself is, for what value of bitcoin are you paying $10,000 dollars for? What are you going to get in return for that investment? What change has been done to bitcoin that its price has risen from $1000 to $10,000 in a year? Why would people hold bitcoin at $10,000? Sincerely speaking, I don’t get an answer for these questions.
Bitcoin doesn’t have price stability and anti-inflation property of gold. So, I can’t treat it as gold. It is too volatile. To earn money from bitcoin you have to buy it low and sell it high. So, people aren’t going to hold. It means the price won’t stay at $10,000. We can’t also get a yearly return. And bitcoin is not a company whose growth is predictable. So, when I try to see value of a bitcoin. I can’t get that security and confidence which I require.
So, I would like you think about these things. And ask yourself if bitcoin is worth $10,000? And why would people hold bitcoin for it to stay at $10,000 or go higher?
No. Bitcoin is worth 100.000🤣🤑
Bitcoin has been fluctuating and it will continue to do so. its worth is alot more and it will go up above 100k but it will have quite a few dips. last few weeks have been amazing but the correction could come. whatever dip comes, will be followed by another rally and so it keeps going up. bad news will most likely be the reason for investors pulling money out. should keep an eye on bitcoin cash too, that seems like a very good potential and may be in for some serious rally.
I am not against bitcoin. But why do you think the price will go up above 100k??
supply is limited while demand is getting higher and higher. its still early days for bitcoin bigger investments have yet to come. then there are different countries to adopt it, this is a solution for whole world. bitcoin has the confidence of investors with the brandname. yes other crypto currencies are coming up but the confidence level for bitcoin is way above altcoins. to hack a bitcoin you'd need a big chunk of whole world's computation power. cant say the same about other coins like bitcoin cash or ether. but i believe in underlying technology more than currency which is here to stay.
What do you think will happen in a crash? Will the investors hold? If a panic occurs then don't you think the result be very terrible?
different types of investors react in different ways. those investors who have faith in technology will hodl so will the long term investors. those who want to get rich quick will be in panic and go out, same will happen to those who invested on term or borrowed money. by crash i mean it will take a dip of -300% or so. which also attracts new money, those who missed out previously have been waiting on the sidelines to pour money in on a crash. my guess is that it will not stay down unless a series of bad news surface.
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