Bitcoin, The Future, And Many Crazy People
Bitcoin has had an amazing run recently. Peaking recently at $5000, it's surge upwards has made millionaires, and shown the world the relevance of cryptocurrencies. Many people who are investing are late comers to this game, and want to make fast money because "everybody else is doing it".
Hopefully those people got a wake up call today. The price of bitcoin crashed back down to about 4500 dollars shortly after hitting 5,000. All people investing in bitcoin, whether they are new, or old hands with coins stockpiled have to understand just how volatile this market can be. For those who don't believe they could lose a huge percentage of their value in days, I suggest you google Mt. Gox.
International incidents aside, the whole concept of buying to make a quick buck quickly turns bitcoin into a massive Ponzi scheme. These people do not understand or value bitcoin for it's intrinsic qualities. Instead they buy in the hopes that many people behind them will buy as well, driving the price even further up. People have to understand that at some point, there aren't people left buying. When the growth slows, or pauses, bitcoin will be vulnerable. All the people who were simply profiteering off of bitcoin will have no emotion about dropping the currency as fast as they can. And that is likely where the next bitcoin crash will originate.
Another possible bitcoin killer comes from Bitcoin Cash. (Ticker BTCC or BCH, depending upon exchange). This coin was split off of bitcoin, and manages to be worth almost 600 dollars. If Bitcoin cash gains value, and becomes a more significant competitor to bitcoin, there is a chance that bitcoin will end up losing a lot of money and hash power to the other chain. With bitcoin currently reigning unopposed, it is easy to forget the challenges that may be presented by newer digital currencies. Bitcoin was the first. It doesn't mean it will be the last.
To conclude. Don't blindly trust. Don't put all your eggs in one basket. If markets can go up large percentages in one day, that means they can do the exact opposite the next. Does this mean bitcoin isn't a good long term investment? Does it mean that you should cash out now? Does it mean that bitcoin won't end up going up in price again?
I can't answer any of those questions. No one can. If they say they can, run, don't walk.
ALWAYS do your own research, and never invest more than you can afford to lose. There is a ton of risk in the future of cryptocurrency. But there is also a lot of promise. I want us all to make it to the other side in one piece. :)
Thanks for taking the time. Feel free to criticize, or comment down below.
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I feel like you have no idea what you are talking about. You have tons of innovative coins and you call BCH a possible bitcoin killer?
Even with the major strides made by Ethereum in the past years, Bitcoins remains the leading Cryptocurrency and this may not change in the near future. Bitcoins also dictate the price trend of all the other cryptos, therefore if bitcoins crashes, everything else crashes.
I agree but Bitcoins won't just miraculously crash into oblivion. Maybe you are not familiar with market corrections or have not been following Bitcoins for the last few years to understand this is perfectly normal.
It is, without a doubt. The annual trend has been a strong upward one for several years now.
Those who bought Bitcoins for $5000 only need to wait for it to surpass that value in due time.
There are Bitcoins ATMs all over Europe.
Bitcoins is the most largely adopted cryptocurrency
I appreciate your concern for my understanding of how things work.
If Bitcoin cash becomes more profitable to mine than bitcoin, (it already did for a short while!), bitcoin cash will receive a much larger portion of the global hashrate. For all that some folks will stick with bitcoin out of nostalgia, profit will dictate most will switch. Of course bitcoin is the current leader right now. That is uncontested. However to say that since it is the leader now it always will be, is foolish.
Define oblivion. Again, please google Mt Gox. I am not arguing bitcoin will go to 0, and did not. I am merely stating that market corrections, or other out of control situations arise where bitcoin could take quite a hit, and hurt the investors who are jumping onto the bitcoin bandwagon.
Do share with the class what it is you know that others don't. You do not know the future. Neither do I. I believe bitcoin is a good long term investment. I am hodling. But you are blindly putting trust into the fact that it will go back over 5000. You do not know that it will.
Yeah. There are bitcoin ATMs. Appreciate the news flash.
And yes, Bitcoin has the largest market cap.
Past results are no indicator of future performance. Blind trust that trends will continue are how people lose big money.
Appreciate you taking the time to attack my intelligence. I hope your points are right. But you are acting a bit like a sheeple.
Sheeple much? Bitcoin has touched all time high of $5700.
Oh, God, you're right!
We should all sell everything we have, and invest in bitcoin!
There's no way we could lose money!
Get a life, dude.
I never said that. Stop putting your own words in my mouth. What I am saying is that, Bitcoin is still young and the risk is lower now than it will be in the future (next 5 to 10 years), In the next 3 years, I would have sold my Bitcoins.