Due to the forbidden of bitcoin transactions in China, what do you think about the future of bitcoin? Will it be banned?
Other countries may try to ban it, but I don't think most countries will. However, there will probably be a lot more regulation in the future. If done poorly, it could really hurt bitcoin. But if it's done correctly, it should help increase bitcoin's value as it becomes a safer asset. It's also possible that China will eventually allow BTC <=> Yuan trading again with tighter regulation. |
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It's actually surprising that there's still a huge number of people that fell for these FUDs. I don't why they don't understand that if they panic sell they help lower the price more. I guess thanks to them other people could buy at lower prices and help the price increase.
For Chinese bitcoin holders, this was a big deal. If there were serious rumors that you might not be able to trade in your cryptos for your local currency anymore, wouldn't you be concerned? Additionally, there were a lot of technicals that were pointing to a significant pullback after we made it up to around $5k. The news out of China gave traders a reason to sell. |
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As someone stated earlier, shares of a company's stock represent ownership of that company (although not really in a meaningful way unless you own a significant percentage of the company's stock). This means that stocks are more or less backed by the (perceived) value of the company, which includes the assets that it owns and current and projected profit/revenue. Cryptocurrencies, on the other hand, aren't backed by any tangible asset, which I think is one of the reasons why they tend to be so volatile.
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Central banks and other elites have painted themselves into a corner. There is too much debt in this world, and all of it is based on fiat money that central banks can print.
The elites must maintain trust in this fiat money by keeping inflation low. That means, one way or another, all the growth in wealth must go to a small number of people.
But the more inequality they create, the more distorted and unstable the system becomes. That is, more and more 'fancy' goods and services are produced just to satisfy the whimsical demands by the lucky people. This demand can disappear any time financial asset values go down.
So central banks must keep financial asset values high just to keep this demand going. But this only worsens the inequality, and the cycle continues. Eventually, something will have to trigger a financial asset crash.
The only real solution to this problem, from the elites' point of view, is to inflate away the debt without destroying the trust in state money. And the only way to do that is to devalue state money against non-state money. Traditionally, that non-state money has been gold and silver. Today, the (Western) elites are using Bitcoin and other cryptos to play that role.
You will not hear this perspective from the mainstream media or establishment economists!
Do you have any sources, or is this just a theory? It seems to me like the simpler explanation is that bitcoin has established itself as an investment vehicle that has been producing ludicrous profits for anyone that has bought and held for any decent length of time. As bitcoin has become more widely known, accepted, and accessible, more and more people have been piling into it, causing the price to increase. |
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We need to get used to this kind of strategy. It is so easy to do that strategy to make a false alarm on bitcoin because they got the power and they can influence people or the bitcoin user easily because bitcoin is so vulnerable into the effect of the news so if something says bad thoughts in bitcoin then it is automatically will make bitcoin dump but we can take advantage of that by buying the dumps and selling when the price goes up again.
Yes I agree with you that it is easy to trigger the price of bitcoin if there is a news that pointed bitcoin and also they have a big influence at the market. Most of the news have an effect in bitcoin price that can cause panic to some people and advantage to those creators of news because they can easily buy at the dip price. For now this is true, but I believe it will become less and less of a trend as time passes. If bitcoin is to persist into the future then this will happen time and time again and soon people will start to wise up to it and it won't be such an effective strategy. If bitcoin lasts the test of time then it is inevitable that the price will begin to stabilise. I wouldn't bet on that. Bitcoin is several years old now, and important news, whether it's been true or not, has always caused major price swings. I don't see that trend changing anytime soon, if ever. If you look at the global financial markets (stocks, bonds, commodities, etc.), they are sometimes affected the same way be important news. The markets are of course larger and more mature, so the swings aren't as large in percentage terms. But sometimes you see things like oil swing 3-5% in a single day. Considering how big the oil market is, that's huge. |
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I thought that there was an instantaneous decrease in ethereum with bitcoin.and after these events I thought of as a momentary decrease, I got 50 ethereum from 260 dollars. I can not decide what to do with certain levels. Of course, it is not right to make sales like this.my mind came up with the idea of joining an ico or a going ico . I thought maybe I could save the damage in this way, but I'm not quite sure. what should i do? Should not I?I've been loss since the day. I do not want to loss any more, but I can not find a solution. I am delighted to share your ideas in this regard.
Hold and wait, if you think you can't handle the downsings just don't invest as much as you are doing now. 50x260 is exactly 13,000$ worth in Ethereum. Whenever it hits 300 again sell them and wait another downsing, earn by the arbitration of the coin on the exchangers. I'm glad to see this kind of posts I'm learning trading skills and knownledge is power. This is such a good point that so many people miss. You need to be able to handle the emotions that come with your investments so that you make rational decisions. The most profitable trades usually don't feel right at the time. And the best way to keep your emotions in check is not to risk too much. If your investments are causing you to worry, lose sleep, etc., then you're risking too much. Although it won't be as profitable, it's very freeing to trade smaller amounts that you aren't so afraid to lose. It's easier to make better decisions. And if you do that over time and become more confident in your abilities to make the right calls, you will be able to trade with larger amounts in a rational manner. And that's when you'll start to earn serious money. |
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The value of ethereum and all crypto is derived from the current market value of btc.
Historically, this has been true. However, I think some of the other major cryptos, like ETH, are slowly starting to decouple from BTC. A few years ago, bitcoin was the only crypto that could be converted to fiat, and everything else traded against bitcoin. That's no longer the case, now that major exchanges like coinbase support converting some of the other major cryptos directly to fiat. When bitcoin falls, almost everything else still falls with it. But when bitcoin is stable or increasing, some of the other cryptos take off. Look how much ETH exploded earlier this year. In percentage terms, there was a period of time when it was increasing a lot faster than bitcoin. |
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As stated, bitcoin's market value is determined by supply and demand. Bitcoin's supply is ultimately fixed at a total of around 21M, about 16.5M of which have been mined so far. A fair number are also believed to have been lost in unreachable wallets. As a result, demand is a bigger driver of price and is generally affected by news and investor sentiment.
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Some media shows that bitcoin can be the next weapon to control the world economy. i think it is true and it will be seen soon.
I'm not sure how one would use it to control the world economy, especially since it's decentralized. First, the world economy would have to depend on bitcoin, which is nowhere close to happening. Then, one would have to control bitcoin. And since the whole point of almost all cryptos is that they're not controlled by a single organization/entity, it would be just about impossible to do. You'd have to stage a 51% attack to gain control of the network. And if you somehow had enough hardware to succeed, just about everyone would then abandon bitcoin because it's no longer being controlled by "the people." |
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I thought that there was an instantaneous decrease in ethereum with bitcoin.and after these events I thought of as a momentary decrease, I got 50 ethereum from 260 dollars. I can not decide what to do with certain levels. Of course, it is not right to make sales like this.my mind came up with the idea of joining an ico or a going ico . I thought maybe I could save the damage in this way, but I'm not quite sure. what should i do? Should not I?I've been loss since the day. I do not want to loss any more, but I can not find a solution. I am delighted to share your ideas in this regard.
You shouldnt be worried about this, price will recover as it always does. I think it is a great idea also investing in ICos i was also thinking about this, mostly all good ICOs by entering market after a while have a price x2 or even more. If you're worried that your investment in ETH may decrease in value, then I highly recommend that you stay away from ICOs. ETH has at least established itself as a valuable crypto, making it a less risky investment than new coins. I can't remember the context, but I thought I saw something in an article the other day about up to 90% of ICOs being frauds/scams. That may have been in a particular country or some other specific setting, but either way, that's a very concerning number. Do you really want to trade in an established crypto for something that may only have a 10% chance of not being a scam? Not Generally all ICO's are scam but there are still some who do have future ahead but comparing them on ETH i can say that its too far away.In op if he did bought on that kind of amount and now the price have dip-pen as of the current state which it would normally decrease your investment or value of your holdings and as being suggested it better to hold it of as of now. I did a little searching, and I think I got that 90% from articles that were stating what the Peoples Bank of China said. So I guess you should take that with a big grain of salt. A lot of people seem to think that there haven't been that many ICOs that have engaged in fraudulent activities globally; some speculate that the rate has only been that high in China. In any case, risk and reward go hand-in-hand. So you might get really lucky and hit it big with an ICO investment, but the chances aren't that great. Furthermore, if you are going to invest in ICOs, be sure you do your research, and maybe invest in a number of them so you increase your chances that at least one of them will do well for you. |
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Financial markets hate uncertainty, which is part of the reason that price has been falling over the last week, not knowing what China would do about cryptos. I think it's actually a positive thing for the market that they've now come out and said that they're banning them. It sucks for Chinese traders, but it gives clarity for the rest of the market, which can now "decide on a price." The dip below $3k this morning might not be the last low we make in the next week or two, but it may be close.
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I thought that there was an instantaneous decrease in ethereum with bitcoin.and after these events I thought of as a momentary decrease, I got 50 ethereum from 260 dollars. I can not decide what to do with certain levels. Of course, it is not right to make sales like this.my mind came up with the idea of joining an ico or a going ico . I thought maybe I could save the damage in this way, but I'm not quite sure. what should i do? Should not I?I've been loss since the day. I do not want to loss any more, but I can not find a solution. I am delighted to share your ideas in this regard.
You shouldnt be worried about this, price will recover as it always does. I think it is a great idea also investing in ICos i was also thinking about this, mostly all good ICOs by entering market after a while have a price x2 or even more. If you're worried that your investment in ETH may decrease in value, then I highly recommend that you stay away from ICOs. ETH has at least established itself as a valuable crypto, making it a less risky investment than new coins. I can't remember the context, but I thought I saw something in an article the other day about up to 90% of ICOs being frauds/scams. That may have been in a particular country or some other specific setting, but either way, that's a very concerning number. Do you really want to trade in an established crypto for something that may only have a 10% chance of not being a scam? |
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Yeah, Dimon is probably playing his own games. A few years ago, bitcoin at least seemed (to me anyway) to be more of a threat to the global currency order. But as time has gone on and bitcoin has become more pervasive, a lot of problems have cropped up that I think are going to inhibit its growth in the future (not necessarily it's price, but how much it's used)...things like its use in fraud, black market transactions, slow transaction times, etc. Solutions are being worked on for some of these things, but without more controls and protections, which go against the nature of what bitcoin is supposed to be about, not enough people will trust and adopt it to make it a reserve global currency.
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Buy in slowly on the dips and do some research to see where support points might be. There's been a lot of talk lately of the $3,000 price level (and we're almost there already). There's likely going to be some strong support around it. If it breaches $3,000 in a serious way (i.e., not a false breakdown), then look for other major places that the price has reversed in the past. I'm also guessing that there will be huge support at the trend line on the log graph of price vs. time, as the community has been watching that for years. I think that's somewhere in the $1500-$2000 range right now, but someone please correct me if I'm wrong.
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Since Bitcoin isn't yet adopted in most places, a large part of its supply and demand is based on price speculation. So as the confidence changes, the price fluctuates a lot. As its adoption increases and people send or receive payments for commerce instead of speculating on its price, it should be less volatile.
Even if adoption would help price stability, bitcoin is caught in a paradox. More stability may require more adoption, but more adoption (especially with respect to using it for commerce) will require more stability. It's very hard to use a currency for retail purchases that can change value with respect to fiat by 1% in a minute. Why would I use btc to buy something when there's a significant chance that it could cost a couple percent more by the time I actually complete the purchase? This is not a paradox I guess it should rather be called a vicious circle of sorts, where cause and effect depend on each other and intensify each other. In this case, merchants aren't accepting Bitcoin because it is too volatile while it is volatile because its adoption among merchants is too low. That's what a logical paradox is. Catch-22 would be another way of describing this (please see https://en.wikipedia.org/wiki/Catch-22_(logic)). A won't happen until B does, but B can't happen until A does. I do mean this somewhat loosely, of course. If enough merchants are willing to take on the risk of volatility now in the hopes of promoting future stability, then it could work. But ultimately, the real cause of this self-sustaining loop is low competitiveness of Bitcoin in comparison with fiat currencies. If it could offer something really valuable which fiat monies can't, it would quickly get accepted and its volatility would diminish significantly
I guess it would depend on what it ends up offering. I can't see price stabilizing without some way of getting everyone to agree on a specific value for a bitcoin. It needs to be tied to something. Otherwise speculators will just keep jerking the price around. |
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Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
As many others have said here, the decentralized nature of the bitcoin is part of the reason for the extreme volatility. There's no centralized entity, like a reserve bank, that can act to dampen the price swings. Traders/speculators that are constantly buying and selling have an impact on the hour-to-hour price. And the general lack of liquidity exacerbates the moves. But one thing that I think most people are missing here is that there's no good way to determine the actual value of a bitcoin. The value of other currencies is determined by the economies they represent. The value of commodities (oil, gold, etc.) can be estimated from the amount of time/effort/resources/money that's required to obtain them. But bitcoin doesn't have anything like that backing it, so there's no way to form a consensus on what it's value should be. Without that, price is going to continue to swing wildly. I think it’s natural for any currency either virtual or physical to be volatile because everything in the universe has ups and down. In case of bit coin, volatility is more visible because of increased number investors in it. As people are getting aware of crypto currencies, they have started investing in it to make huge profits in future. Yes, all financial instruments have ups and downs. But almost nothing has such crazy swings as bitcoin (and other cryptos), unless something catastrophic happens that throws markets into chaos. For most fiat currencies, it's a big deal if they move by 1% in a day. For bitcoin, it's a big deal if it doesn't move by 1% in an hour. Most other financial markets have more investors than bitcoin, but their prices don't fluctuate nearly as much. The volatility here ins't because there are more investors; it's because of the type of investors that are being attracted (i.e., make-a-quick-buck-and-get-out traders). |
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Ok, so it sounds like at least some of you don’t think we’ve hit the euphoric stage yet. Fair enough. Perhaps I’m mistaking general bullishness for euphoria. I didn’t join bitcointalk until after the 2013 $1100 price spike, so I don’t know what the vibe was like back then. Would you say that people were more bullish/euphoric when it hit $1000 for the first time than they are now? The price acceleration at that time seemed to indicate euphoria....
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In this coindesk article ( https://www.coindesk.com/correction-not-crash-bitcoin-price-eyes-3000-traders-take-profits/), the author writes: Euphoria not reached
As we analyze the current markets, it’s important to remember bull markets are built on fear and skepticism, while major market tops are the product of extreme euphoria.
Most investment banks have been and still call bitcoin a “scam.” Every week, we see some stock market expert drawing parallels between the bitcoin rally and stock market bubbles seen over the last 100 years. Thus, despite the 416% year-to-date gains in bitcoin, it is safe to say that there are no signs of Euphoria.
In fact, the first sign of bitcoin nearing a major top would be investment banks boarding the cryptocurrency freight train.
More likely then is that what we’re seeing now is a technical pull back. Following a stupendous rally, investors are looking for reasons to take profit.
I was surprised by this. I've seen an awful lot of optimism on the boards lately. I agree that investment banks jumping on the train with huge purchases would be a sign of nearing a major market top, but that would be the ultimate, long-term market top. If/when that happens, bitcoin will reach a saturation point, and factor-of-10 price increases will be a thing of the past. But I think that's much further out than what happens to the recent bull run to $5000. Do you think the market has become euphoric on the way to $5000, such that this may indicate a short/medium-term top, or do you think this really is just a pullback from which we'll recover over the next couple/few weeks? |
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Since Bitcoin isn't yet adopted in most places, a large part of its supply and demand is based on price speculation. So as the confidence changes, the price fluctuates a lot. As its adoption increases and people send or receive payments for commerce instead of speculating on its price, it should be less volatile.
Even if adoption would help price stability, bitcoin is caught in a paradox. More stability may require more adoption, but more adoption (especially with respect to using it for commerce) will require more stability. It's very hard to use a currency for retail purchases that can change value with respect to fiat by 1% in a minute. Why would I use btc to buy something when there's a significant chance that it could cost a couple percent more by the time I actually complete the purchase? |
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I'm a little surprised at how negative everyone is about giving advice. I guess it depends on your relationship with your friend. My brother got me into cryptos a few years ago right after the spike to $1100. Even when I was in the red (which was the case for a while), I harbored no ill will toward him. Actually, it was a lot of fun and it strengthened our relationship.
As for advice, to anyone looking to invest in bitcoin, I would say you should wait for a big drop to buy in (remember that price spikes in the past have been followed by 75%+ declines), and then do it slowly, as it's unlikely that you will catch the bottom. As always, remember that making money off cryptos is highly speculative and extremely risky, and that you seriously need to consider what would happen if everything crashed and didn't recover.
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