A quick poll...
How many of you think this BTC volatility is a bubble doomed to come crashing down? Do you think this could indicate something else? I do. I wonder what you guys think. Pick one and comment if you feel like participating.
1: Bitcoin is a bubble that will pop and crash. This will leave MANY broke.
2: Bitcoin will become stable soon and we will see a correction and flattening out.
3: The skyrocket is because of adoption, it will only get better from here.
Let me know what you think and thanks in advance!
I think the first part of 3 is accurate along with the second part of 2.
Why
I have been watching Bitcoin price about 4 years and did some day trading this year. I remember right after the first big peak around $1200 the price went down to under $500. In the trading world eventually there is always a correction after an uptick in volume slows down. Its all normal from what I have witnessed personally. When people buy on hype they are willing to pay more and the spikes are usually correlated with media coverage so when new people are rushing to buy the price is already above where it should be.
My Prediction
Aside from normal 10% corrections that occur occasionally I expect the price will be moving exponentially all year. Thats only if all goes well in the news and legally, but at some point, maybe $50,000 - 80,000, there will be a swift 50% correction. This is because mining difficulty and the markets control the price more than holders. No one that's just holding there bits is effecting the price directly, unless through personal endorsement and helping keep volume, so when the buy orders & hype start slowing down the price will likely see a dramatic correction.
Very interesting. I agree about hype/fomo buying. I know it is hyped right now but....I have 0 and have to start somewhere. I only feel this way because I agree that I will at least least 3-4 X growth over the next 2 years.
About the corrections...yes I wish we could see a nice drop back to 9-10k. I do not really see that happening though. I do consider waiting for the hype to die down to see what happens pricewise, but I do not want to waste money waiting (if that makes sense).
Thanks again for your reply, I am very new to this and need insight from people who are seasoned.
I'm no pro and have lost $ trading but if you want to wait for good dip in BTC but still want to get started I would suggest purchasing another coin thats stable and supports mining, like LTC or ETC. I mention those because price is comfortable with lots of room to grow..
Thanks for the tip!
(3) with a caveat: Even though I think adoption is largely responsible for the rise in BTC value, I'm concerned that most BTC buyers are in it for speculative motivations. With the high BTC transaction fees - which does not seem likely to be solved by SegWit anytime soon - this currency is becoming less and less suitable for every-day transactions.
Although BTC's value is gonna continue its exponential rise - it will probably correct, flatten out, then rise again -I find it hard to see it as the cryptocoin of the future. It's technically flawed and inferior to several high-quality altcoins such as Cardano or Dash, and if reason eventually prevails BTC's supremacy will be overtaken by the most practical coin out there. Bitcoin does not deserve its gold standard status in my opinion. But because of the huge gap in market cap and reputation, Bitcoin will remain the predominant cryptocurrency for a long long time.
Thanks for your opinion! It is nice to hear from you guys that know this stuff well (or sound like it anyway). I keep researching daily and the more I do, the happier I get hahah. Too many people are sleeping on this stuff.
To be clear, I am a newbie. This is by no means an expert opinion but just my modest and incomplete understanding of the crypto-market.
#3: In my place (a developing country), everybody talks about Bitcoin, whether it is good to invest in. Those even housewives or office workers which clearly show signs of mass adoption.
I feel the same way. I am not saying it will continue straight up, but the more who adopt the more stable it will become. I mean even now the IRS in my country is wanting to know who's got BTC. That is a sign.
Hahaha! This is the first time I hear good news - well, kinda - involving the IRS!
Right?