Bitcoin will NEVER become worthless, here if my explanation why

[orestrus]

We all read countless good articles about bitcoin, why it will prevail. Today I decided to add one more very important factor that no one has discussed yet.  Ok, let's say one day bitcoin drops to $1k. Any billionaire with half a brain will use that opportunity to corner the market and make a killing. Bitcoin market cap will become cheap enough for any billionare to make a fortnune ,  here is how. Ok, on one side we have crypto market that is esentually unregulated, and on the other side we have a GBTC stock that tracks bitcoin. 8 million avg volume, 8.5 million short interest, 181 mil shares outstanding. We all know that market order of say 500-600k bitcoins (with the right press coverage) will move price dramatically. Hell, 1 million bitcoins will cost $1 billion, think about what's going to happen. Here is what smart investor would do. He would accumulate gbtc units and wait for the right moment when the price is cheap enough to place a huge market order on crypto exchange. Bitcoin will rise dramatically, but gbtc will rise even more as short sellers will be forced to cover their short positions. For those who are not familiar with term "short squeeze" can do some reading https://www.investopedia.com/terms/s/shortsqueeze.asp Investor than unloads gbtc units with huge profit and liquidates his bitcoin position while the market is on "hype" mode. Guys, believe me, someone will corner this market if price becomes low enough. As long as we have gbtc and bitcoin futures, bitcoin will NEVER become worthless. It's pretty much guaranteed.

[dreamteam17]

information and various articles in social networks help to increase knowledge of the crypto currency, and it's very cool, without them we would be like in a fog!

[pixie85]

Of course. There are 2 things you should remember if you're seeing red candles and starting to panic. First is that the sell pressure is never unlimited. If you have 1 million coins on the market all holders/traders will never decide to sell. Even if the coin was dying there would be that 20% who doesn't believe the news, doesn't have account access at that time or simply prefers to gamble on that it will recover. The other thing you should remember is that people who sell don't take their money and leave the market. They will wait for the opportunity to buy! So the recovery is coming.

[felicita]

Of course. There are 2 things you should remember if you're seeing red candles and starting to panic. First is that the sell pressure is never unlimited. If you have 1 million coins on the market all holders/traders will never decide to sell. Even if the coin was dying there would be that 20% who doesn't believe the news, doesn't have account access at that time or simply prefers to gamble on that it will recover. The other thing you should remember is that people who sell don't take their money and leave the market. They will wait for the opportunity to buy! So the recovery is coming.

lets hope for this iam still holding my coins becourse i missed the chance to sell on 20k on to buy new in now.
but i also think some big wales will buy in again Now they have low prizes !



regards

[coolcoinz]

That was a very nice post OP. You caught the moment. It looks like the short squeeze is about to happen.
It could be a trap but if it is the real one will happen at 6000. Those who shorted are eager to go back in, like they always do.

[avikz]

We all read countless good articles about bitcoin, why it will prevail. Today I decided to add one more very important factor that no one has discussed yet.  Ok, let's say one day bitcoin drops to $1k. Any billionaire with half a brain will use that opportunity to corner the market and make a killing. Bitcoin market cap will become cheap enough for any billionare to make a fortnune ,  here is how. Ok, on one side we have crypto market that is esentually unregulated, and on the other side we have a GBTC stock that tracks bitcoin. 8 million avg volume, 8.5 million short interest, 181 mil shares outstanding. We all know that market order of say 500-600k bitcoins (with the right press coverage) will move price dramatically. Hell, 1 million bitcoins will cost $1 billion, think about what's going to happen. Here is what smart investor would do. He would accumulate gbtc units and wait for the right moment when the price is cheap enough to place a huge market order on crypto exchange. Bitcoin will rise dramatically, but gbtc will rise even more as short sellers will be forced to cover their short positions. For those who are not familiar with term "short squeeze" can do some reading https://www.investopedia.com/terms/s/shortsqueeze.asp Investor than unloads gbtc units with huge profit and liquidates his bitcoin position while the market is on "hype" mode. Guys, believe me, someone will corner this market if price becomes low enough. As long as we have gbtc and bitcoin futures, bitcoin will NEVER become worthless. It's pretty much guaranteed.

That's what any wise people would do. You don't need a billionaire to do it. I am a very small player in the market and I am buying bitcoins now because the price is super cheap. Only if the rest of the community would understand the opportunity!