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Author Topic: Why is a constant rise in the price of Bitcoin, important?  (Read 119 times)
dothebeats
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May 17, 2018, 11:36:40 AM
 #21

Indeed. Hoarding bitcoin alone isn't enough since anytime, a violent crash might happen that could potentially affect your already in-profit investment. You need to liquidate funds immediately and reopen your position in the market once it has suffered some losses. Only then would you be outperforming traditional investments and wait for the next opportunity to buy back in the market. I'm not against hoarding coins for the long time because I know for a fact that it works, but the people who are hoarding for too long might be missing a lot of opportunities this market is offering.

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jseverson
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May 17, 2018, 12:16:59 PM
 #22

I think I get what you're saying. Basically, simply HODLing isn't enough to maximize your profits, correct? Bitcoin does have the potential to be one of the best performers, but you must do some smart selling in addition to HODLing to actually realize that potential. It has to be acknowledged that there's a lot of guesswork involved though, as you always run the risk (if you can even call it that lmao) of selling mid-rally.

Aren't your numbers a bit off though? I mean, why would inflation not affect other traditional investments? Am I missing something?

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May 18, 2018, 04:12:34 PM
 #23

I can understand the concern of OP and agree with him up to some extent. I think the rise in price would definitely help Bitcoin to attract many new eyeballs but I want the rise along with the rise of the user base. It doesn't make any sense to blow the price if there is no base for it. It will collapse if something like it is taking place in the market. We have already experienced the price rally due to the involvement of the big whales and institutional investors but when they decided to sell their investment, it resulted in a panic selling wave in the market and ultimately the correction of 65%.

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May 18, 2018, 04:44:19 PM
 #24

Let's say you bought a bitcoin for $1000 in January 2018. <Just an example, not the real price at the time>

So you have to beat inflation and also the performance of other investments to say that your Bitcoin investment was a better investment, than other alternative investments.

Let's say your inflation is 5% and your best return on some other investment is %20 per year, then your Bitcoin price increase will have to be more than %25 to beat the alternative investment.  

Let's say you hoard for 5 years, then you would need a price increase of 125% to beat your alternative investment returns over 5 years.

So we cannot have a price increase of 800% in year 1 and then a price decrease of %400 in year 2 and another price decrease of 200% in year 3 and so on...

Hope you get at what I am saying. Hoarding might be harmful to your profits, if you do not cash out SOME profit on the ATH.  Wink ..... You might end up with a bitcoin worth $100 in year 5.  Roll Eyes

I am glad you pointed it out. Exits are more important than entries for majority of traders (excluding scalpers). Cashing out continuously is a great way to secure your profits from cryptocurrency.

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May 18, 2018, 05:37:50 PM
 #25

yang jadi tanda tanya besar adalah, dimana letak titik tertinggi Bitcoin? bahkan dalam beberapa bulan saja Bitcoin mampu untuk mencetak dan terus mencetak rekor baru. dimulai dari level $4,979 sekitar akhir bulan September, kemudian level $6,449 pada bukan Oktober, dan terus naik bahkan sampai diatas harga $8,200 per Bitcoin.

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May 19, 2018, 04:52:49 AM
 #26

People who have invested significant amounts with the intention of winning that money back should probably follow this policy. To me personally, i prefer to hold whatever I have till i get a good technical grasp of this. If things work out the way they are meant to, we'd probably not have to worry about trading and stuff.

Another interesting way out is to use bitcoin to buy stuff. We need new stuff all the time. That money will be spent anyways. So instead of spending fiat directly on the good, I think spending it via bitcoin would be much better. I am still looking for ways to do this as the ecosystem isn't tuned to goods out here but rather to trading. I tried trading but realized i have not much love for it. All it gets you is money.

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May 19, 2018, 05:13:38 AM
 #27

The rise of bitcoin is driven by many factors. In the end, the rise of BTC prices is due to the increasing perfection of its investment attributes. BTC no breakthrough in usage scenarios, but as an investment, BTC has already is an important investment target, whose nature is more and more like gold, its use value is no longer important, important is its increasingly recognized as an investment.
Yes there is now no improvement in the investment attributes of bitcoin. These are all empty words that are not true. There was a strong and stupid skew in the use of bitcoin, which already now causes insoluble problems. We need to use bitcoin for its intended purpose - as money and means of payment. Using it as a repository of value, or, more simply, for the purpose of speculating and extracting superprofits due to the growth of its price, can lead to nothing good. The bitcoin will grow from this in price, while because of the panic that has arisen, it will not depreciate.

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May 21, 2018, 07:37:10 AM
 #28

I am not really sure I get your point here. If you have an initial $1,000 invested, and you get positive returns every year, how can you end with just $100?

I do agree in cashing out from time to time, especially in ATHs.


This should not be too difficult to understand. You buy at say $1000 in year 1 and the price drop with 50%, then you are left with $500. Then it drops with another 50% in year 2 and you are left with $250 of your initial investment.

If you invested that $1000 in some traditional investment and you received say 20% in year 1, then you would have had $1200 by the end of that year and $1440 in year 2 and so on...

The best strategy would be to take profits in whatever year the price of Bitcoin reach a ATH again, to secure your profits. You should not just follow a blind "hoarding" strategy, where you hope that the price will be much higher than what you might have received from an investment in a traditional investment with a fixed return.

I took profits last year, when the price skyrocketed to a ATH, so my profits are locked in. <800% in 1 year> So, even if the price decrease now, I would still have recovered my initial investment with some good profits.  Wink

I can lose all my money invested into Bitcoin now and I would still be in the green, because I cashed out the profit on a ATH.  Grin
A constant rise is important in the rise of Bitcoin because those who have invested in it will be wondering at the regular graphs in order to reach at the expected price they were looking for. This will assure the modern world to link with the frictionless technology both incase of investment and transaction system. Besides other advantages Bitcoin regular price will create a more positive site for people.

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May 21, 2018, 08:23:44 AM
 #29

Dont complicate things, bitcoin will pump in value causing you to gain profit but we cannot neglect the fact that it is not always pumping at some point the value will surely drop and will cause your fund to lose. Bitcoin doesn't need to be constantly growing for ypu to earn, trading with wise strategy is the best way to have, regardless of the price track. Its good to have a price and ever growing price but its not the real thing about bitcoin.

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May 21, 2018, 09:35:50 AM
 #30

Hope you get at what I am saying. Hoarding might be harmful to your profits, if you do not cash out SOME profit on the ATH.  Wink ..... You might end up with a bitcoin worth $100 in year 5.  Roll Eyes
What you are saying is sad and true. I didn't cash out my btc ath and lost quite a lot of what could be my profit. The main reason of not cashing out was the constantly rising price and really high transaction fees. But that was stupid and greedy. Now I simply want the price to climb up to $15k or so and I'll sell everything I got, because when you have no btc stored you don't really care about the price and use the converted money the way you need.
If we keep holding our cryptos it will justify even more the way of treating it as property, not financial assets. We have to us them in any way we can to prove they are worth those prices they still have.

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May 22, 2018, 05:13:07 PM
 #31

Price of the Bitcoin depends on supply and demand factors. These along with other factors like government regulations and technology decides the overall price of the bitcoin.
As with the passage of time Bitcoin's market cap has been increasing and continue to do so, there are fair chances of its price increase. Smiley
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May 23, 2018, 07:42:01 AM
 #32

Let's say you bought a bitcoin for $1000 in January 2018. <Just an example, not the real price at the time>

So you have to beat inflation and also the performance of other investments to say that your Bitcoin investment was a better investment, than other alternative investments.

Let's say your inflation is 5% and your best return on some other investment is %20 per year, then your Bitcoin price increase will have to be more than %25 to beat the alternative investment.  

Let's say you hoard for 5 years, then you would need a price increase of 125% to beat your alternative investment returns over 5 years.

So we cannot have a price increase of 800% in year 1 and then a price decrease of %400 in year 2 and another price decrease of 200% in year 3 and so on...

Hope you get at what I am saying. Hoarding might be harmful to your profits, if you do not cash out SOME profit on the ATH.  Wink ..... You might end up with a bitcoin worth $100 in year 5.  Roll Eyes

I am glad you pointed it out. Exits are more important than entries for majority of traders (excluding scalpers). Cashing out continuously is a great way to secure your profits from cryptocurrency.
A trader won’t be a trader if he does not sells out and earn profit from time to time. This is what trading is. Otherwise, he will become a simple holder. As far as the matter of securing profits goes then in don’t doubt potential coins in any way because the boy who became a millionaire was basically a holder not a trader. Profit securing depends on asset that someone chooses. If it is a potential coin, he will never get disappointed.

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May 23, 2018, 08:09:18 AM
 #33

but the volatility will remain the same no matter what people do. even if they stop hoarding and sell something at the ATH and take profit there and do all the things OP says, price will still remain volatile the same way it has always been.

the problem is not with what people are doing, the problem is because of exchanges! they are too small and hard to trust so they remain small. if you look at order books you can see that a large sell or a large buy can change the price a lot more than it should. and we all know that prices are set on exchanges.
and for that to change we need better trusted exchanges so that people don't feel the need to cash out and never leave an open order. with that the order books will be filled a lot more and the swings become less wild and that will decrease the volatility and we will no longer have 1000% rise followed by 70-80% drops. instead we can have a smooth rise of somewhere around 100-200% rise per year with smaller corrections instead of massive dumps.

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