The higher BTC goes, the bigger the risk/reward ratio and the less buyers enter

[dihari]

The higher BTC goes, the more people will get awareness of crypto currency. Just 3 years ago when BTC touched $19000, i saw more people getting interested in investing. I dont see people losing interest in investing in crypto when BTC increases with time.

Not losing interest, it's just low new buyers. The only thing that make btc have low new buyers when the price high is, people always thinking it's too late to enter the market. They always thinking the price is too high and waiting for dropping price. It's normal.

[1713579882]

1713579882

[shoreno]

btc is a good investment but to invest in as much as 100k can depend on the people if he has a good buying power . yes we are already used to smaller folds but thats small anyway but 100k usd is in a whole nother level because the profit that youl be getting when btc reaches it is also huge .

 dont say that when btc reach 100k the price just only double but you think 100k is easy and small ? well think again and theres no need to ask for another double because we can always profit even if that didnt happen .

[maydna]

The higher BTC goes, the more people will get awareness of crypto currency. Just 3 years ago when BTC touched $19000, i saw more people getting interested in investing. I dont see people losing interest in investing in crypto when BTC increases with time.

Not losing interest, it's just low new buyers. The only thing that make btc have low new buyers when the price high is, people always thinking it's too late to enter the market. They always thinking the price is too high and waiting for dropping price. It's normal.

If they open their minds about bitcoin's investment, they will not think about it too late to invest in bitcoin because they still have time to start buying bitcoin. If they know that they can buy fractions by a fraction of bitcoin, they will try to use the money they do not use for anything, and they will hold it after they finish buying bitcoin.

Waiting for the dropping of the price will always recommend for people who want to buy bitcoin because that can reduce their risk from fluctuating the bitcoin price. Perhaps, they need to learn more about the bitcoin investment side before buying bitcoin.

[buwaytress]

You can't possibly, especially if coming from traditional finance (sorry to use such an overused term) that entering Bitcoin now or any time in the future could be riskier than entering at any period before 2020.

Every block it mines makes it more secure, more viable, more valid than ever before. Every crisis passed, every new upgrade made, makes it fundamentally stronger, more battle tested, more mature.

Price in short and medium terms are but flashes in the long term. Rewards may be financially "less" but risk is also significantly reduced. Ratio sustained.

[Renampun]

I strongly believe it will reach 1 Million a coin because:

1. Gold will become obsolete (too hard to move around, to transaction and its supply grows 2% each year)
2. BTC is limited in supply (~15 M active coins for the whole world is nothing!)
3. The future is crypto money, we won't be living in ice age forever

The banks are scary like... they will do everything they can to stop it, but will fail.

there is no debate with your opinion, I agree with this...
Bitcoin price today is not a fixed Bitcoin price in the next 10 years and 20 years. Bitcoin price has the potential to continue to rise as time goes on.

[panganib999]

You can't possibly, especially if coming from traditional finance (sorry to use such an overused term) that entering Bitcoin now or any time in the future could be riskier than entering at any period before 2020.

Every block it mines makes it more secure, more viable, more valid than ever before. Every crisis passed, every new upgrade made, makes it fundamentally stronger, more battle tested, more mature.

Price in short and medium terms are but flashes in the long term. Rewards may be financially "less" but risk is also significantly reduced. Ratio sustained.

Actually it is true and in addition, the BTC being a volatile is simply a risk now. I can say that it is very good to invest in BTC as long as you know the basics and the simple idea of it. The more the BTC go bullish the chance of risk getting higher too. But if you learn how to control or to have some explanations in it. But I suggest that we must be aware of the events and other things that might affect BTC because it is unpredictable and risky to push into it or to enter if you don't have amy idea what is happening to it.

[oHnK]

You can't possibly, especially if coming from traditional finance (sorry to use such an overused term) that entering Bitcoin now or any time in the future could be riskier than entering at any period before 2020.

Every block it mines makes it more secure, more viable, more valid than ever before. Every crisis passed, every new upgrade made, makes it fundamentally stronger, more battle tested, more mature.

Price in short and medium terms are but flashes in the long term. Rewards may be financially "less" but risk is also significantly reduced. Ratio sustained.

Actually it is true and in addition, the BTC being a volatile is simply a risk now. I can say that it is very good to invest in BTC as long as you know the basics and the simple idea of it. The more the BTC go bullish the chance of risk getting higher too. But if you learn how to control or to have some explanations in it. But I suggest that we must be aware of the events and other things that might affect BTC because it is unpredictable and risky to push into it or to enter if you don't have amy idea what is happening to it.

I don't see that this is any more risky because from the start BTC and other crypto are volatile asset types so they never change at the moment.  We can mitigate the risks that exist in BTC with the knowledge that we continue to learn and even experiences from various parties can also be an insight for us in reducing the risk of this type of investment.  Risk management is very closely needed in volatile assets so that for me, until now, there is no difference.

[ven7net]

If btc goes to 100k it will "only" have (more or less) doubled from its ATH.
From there it will need to rise another 100k in order to double again. I don't say this is not a good investment, but first of all crypto owners are spoiled, until up to now we were used to 10-fold, 20-fold + increases, so doubling the money has not been really special.
But this smaller reward ratio is paired with a much bigger risk ratio, since btc's swings in a correction period will also get bigger.
For hodlers who are in from the very beginning, it won't matter much probably, but where will btc find new buyers when it has reached 100k and needs to go up another 100k in order to double again in price?
And the fear of FOMO will also become smaller, as people will at one point accept, that the train has left the station.
Of course, should btc show convincing signs that it could reach 1 Million very quickly, then the whole picture changes.

To understand how BTC works, you need to look at the history of BTC development. History shows us that BTC showed new peaks in its price every four years, and after each such peak, its price went down for a correction. Now, everything is likely to happen the same way, by the end of 2021 BTC will show a new price peak and then go into a deep correction. It is worth noting that, no matter how it was, BTC is a high-risk asset, which has already made it possible to make good money, but also made it so that some investors lost their funds. With the rise in the price of BTC, there is growing interest for investors, as well as doubts about buying it. This is logical, since with a new peak in the BTC price, the risk increases.

[Jemzx00]

You can't possibly, especially if coming from traditional finance (sorry to use such an overused term) that entering Bitcoin now or any time in the future could be riskier than entering at any period before 2020.

Every block it mines makes it more secure, more viable, more valid than ever before. Every crisis passed, every new upgrade made, makes it fundamentally stronger, more battle tested, more mature.

Price in short and medium terms are but flashes in the long term. Rewards may be financially "less" but risk is also significantly reduced. Ratio sustained.

People have been looking at bitcoin as high reward investment as the demand for it have significantly increase due to adoption from major companies such as Tesla, Paypal and many more but they must rather think of it as secure and more viable investment as with these adoption will surely provide support on the market.
The reward might not be able to double in a short amount of time like before but it will more secure and stable in the long run. Just as you've said, the ratio is sustained.

Anyway, if someone wants a fast and more volatile market which can provide a huge amount in return then it's better to look into other cryptos which are good in the short run but the risk may be higher compared to bitcoin.

[Yey09]

With every 1000 gain I more and more afraid about 2018-like scenario dump. That will really kill me

[Poker Player]

-snip

Your comments seem focused on retail investors but we are in a mainly institutional investors phase. Institutions buying Bitcoin are not so focused on the price now being high or not, rather on buying a pristine asset which is going to surpass and substitute gold as the best reserve asset in the world. This is mainly because the cost of capital has gone up a lot during the past year and it seems it will stay like that for a while, being Bitcoin the best-looking asset protect value.

[conected]

The higher BTC goes, the more people will get awareness of crypto currency. Just 3 years ago when BTC touched $19000, i saw more people getting interested in investing. I dont see people losing interest in investing in crypto when BTC increases with time.

Not losing interest, it's just low new buyers. The only thing that make btc have low new buyers when the price high is, people always thinking it's too late to enter the market. They always thinking the price is too high and waiting for dropping price. It's normal.

- Indeed, people still have a lot of interest in bitcoin but for small investors, the price of bitcoin getting too high is a problem with their capital, they don't have enough money and even if they have enough money, the assets they own can only increase marginally as bitcoin grows. Another problem is their psychological instability with such a large amount of money, the worry made small investors falter in decision, attract only big investors, take big risks and take big returns, do not participate in bitcoin, small investors can still join altcoin and help bitcoin grow, everything is still very balanced

[buwaytress]

Actually it is true and in addition, the BTC being a volatile is simply a risk now. I can say that it is very good to invest in BTC as long as you know the basics and the simple idea of it. The more the BTC go bullish the chance of risk getting higher too. But if you learn how to control or to have some explanations in it. But I suggest that we must be aware of the events and other things that might affect BTC because it is unpredictable and risky to push into it or to enter if you don't have amy idea what is happening to it.

Anyway, if someone wants a fast and more volatile market which can provide a huge amount in return then it's better to look into other cryptos which are good in the short run but the risk may be higher compared to bitcoin.

Bitcoin has always been volatile, that has never changed. Only the amplitudes and frequencies change, but that volatility is what's always attracted people to it if in for speculation, so not sure why it keeps being brought up. A market only over 10 years old is expected to behave like this.

I still think people have to stop seeing Bitcoin as a stock. It's really not.

[TribalBob]

for new bitcoin users / owners who know bitcoin at a price of 80K $, of course they want to benefit from their initial purchase (a common thing in every trade) but those who have bitcoin priced at 20k $ have already reaped several times the profit,
the higher the bitcoin price will definitely be sought after by lovers, who are tempted by the benefits offered but they know bitcon is too late, scary if they buy bitcoin at 80k $ and never  instead get a new ATH but it drops like 2018 back to 20k - 30k

[mazdafunsun]

Cryptocurrency markets and financial markets in general work in cycles, so does the bitcoin market , currently there are signs that we are getting close to significant levels for bitcoin ( logarithmic resistance), also the cycles of growth has been slowing down.
If we take into account these factors, I would say the risk ratio is very high currently. The best case scenario we hover between 50 and 60k for few months..

[PointHope]

I strongly believe it will reach 1 Million a coin because:

1. Gold will become obsolete (too hard to move around, to transaction and its supply grows 2% each year)
2. BTC is limited in supply (~15 M active coins for the whole world is nothing!)
3. The future is crypto money, we won't be living in ice age forever

The banks are scary like... they will do everything they can to stop it, but will fail.

Exactly, Gold will go back to being what it is good for; nice jewelry.

BTC is a store of value never known before, immutable, p2p trustless accountability, unconfiscatable.

BTC gives everyone (7 billion people) more power than a Swiss bank.

The fiat banksters are dead.

[Slow death]

I agree with what you said, but for now there are still many chances of the price being able to do 2X or 6X because there are still not many super rich people buying bitcoin and advertising, we saw the positive effect that paypal brought and that elon musk brought, imagine if Jeff Bezos also buys a lot of bitcoins and amazon accepts bitcoin, imagine if bill gates will also be advertising on bitcoin, imagine that hundreds of companies and governments accept bitcoin as a means of payment and hundreds of banks start investing in bitcoin, i still see great potential for 2X to 6X profit, so i think people are still not afraid to invest in bitcoin. note that the price has not dropped below $40.000 for some time and each time it increases there are no very big drops, this shows a great solidity in the price increases

[pawanjain]

The risk reward ratio won't change if btc goes higher because its the same regardless of the price. If bitcoin was at $100,000 and if it falls to $50,000 then it would be the same risk to reward ratio as when bitcoin was at $1000 and fell to $500.

What matters though is the amount of money needed to go 2x.
As the price of bitcoin increases, it will take a lot of money to go 2x than it was needed when it's price was low. This is why as bitcoin grows it would be difficult to maximize the return potential.

[ModelT]

Apologies if this has already been asked, but if BTC and i.e. NANO both see their market caps increase $10 billion in the next year, what happens to each of their prices?

?
Most people will get this wrong because they suck at math   or don't fully understand bitcoin.
?



Answer: NANO goes up 15+ X and BTC drops slightly in price! (based on 3/21/21 being the start date and no changes in protocols over the next year)

To answer the OP, as more people hold more and more of an asset, the pool of new buyers gets smaller and the pool of potential sellers increases (but that is no guarantee that people buy or sell).

[BrewMaster]

Apologies if this has already been asked, but if BTC and i.e. NANO both see their market caps increase $10 billion in the next year, what happens to each of their prices?

altcoins, specially those with terrible supply amounts are never going up in price over the long run. they can only hope for some pumps that could increase their price in short term.

Most people will get this wrong because they suck at math  Huh or don't fully understand bitcoin.

you don't have to understand bitcoin to know how market cap works!
a shitcoin with a massive supply will have a high market cap regardless of it being dumped. and when bitcoin rises and the altcoin dumps its market cap measured in USD sometimes shows increase.

as more people hold more and more of an asset, the pool of new buyers gets smaller and the pool of potential sellers increases (but that is no guarantee that people buy or sell).

price rise doesn't always need "new" investors. it needs new money. that money could be coming from the old investors investing more money in.