Right now, investors are watching how low miners and early adopters are willing to go...
Prices could continue down over the coming months. Maybe even to $2-5.
Because only in the coming 1-2 years. Million of bitcoins will be produced and it take millions of new dollars to buy those.
At as low as $4 with 2 million new bitcoins we are talking $8 million dollars. Which is not a small sum and on top of it we have all the other coins.
A majority of those millions of coins out could probably be sold at $4 and still be a good profit.
But since Bitcoin has had its hype in the media, its been articles in every major newspaper in the world
and all over the internet and lots of bad publicity.
There is a risc that few new investors will join now when they see price go down.
Which means its a highrisc investment.
A majority of those that think its interesting and see the potential might have allready joined and bought, some will buy more, but not everyone.
Some will even sell and get out as price goes down.
But new bitcoins get mined everyday. Which means right now we are seeing almost a hyperinflation.
Right now its like a printing press that cant be stopped and someone have to buy all those new coins.
As price goes down, we might see only the miners with zero electricity bills might be left.
And they will increase their amount of found coins? Perhaps making a profit at $2!
As long as miners can make a profit. Price can go down.
Meaning price decrease will could continue for quite some time. Which also leads to more panic sells.
Which leads to fewer players in the market.
After a while as price goes down we might se a few big players owning most of the coins. Just like in evolution, the strongest will survive.
Meaning they can manipulate the market. Crash it to buy even more.
I´m not saying it will happen, but it could.
Because the see profit in the long term, maybe 10 years.
It could take a few years, maybe 6 years when there is a lot less new bitcoins everyday.
Before we start seeing a real stable long term price and when price will really go up longterm.
Until a equilibrium is reached which could be in almost any pricelevel, no one knows at what price that level is. But right now, we have not reached it, because it would not continue down.
But as price goes down the likleyhood of the price going up increase and it could go up tomorrow, as the lower the price the less it takes.
What I´m saying is that we really dont know what will happen, and there is a lot of new bitcoins being mined.
Remember that only a few months ago price was very low. There are many new investors in the market since then, but many of those want to buy low, meaning the will wait.
I really hope price will go up, sooner rather than later. But its not up to me and its possible that it will go down much more.