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October 17, 2011, 05:00:57 PM |
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So when bitcion was well over $15 or $20, I was saying I would buy bitcions when they hit around $2.00's, that is when I said it was a good long term investment.
Now that it hit that point, I do not even want to buy them. It seems that one thing consistant with bitcoin since it hit $30, was that it continues to drop.
Being one of the bigger bears about bitcoin, I am not sure now where the bottom is. Since I missed buying oil when it was $30, I was waiting for it to hit $20, I do not want to miss the bottom here.
Personally, I think I am going to wait this out for a long term stable price. I believe it should bottom out and stay at that price for a long time, like months, then it may gradually go up from there. But with gradual, I am saying, like 3-5% a year. Reason for saying this is that, 7,500 or so new bitcoins are coming to the market every day, this will have a stabalizing effect on bitcoin.
So I am going to sit this one out.
Remember, bitcoin always reaches its new lows, then it has a dead cat bounce. But the fact is that something like 50K-100K of bitcoins were sold to make it fall this low. These people now own these bitcoins. It only takes maybe 5K bitcoins to increase it back up a bit. However, 100,000 or so bitcoins are now sitting in these peoples pockets.
If they dump them they will make bitcoin fall further. They should also be less likely to buy future bitcoins, now that they own many of them.
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