A lot of people think the current cryptocurrency market is a big bubble.
I agree in terms of the ICO's (by the way whats fucking IOTA ˆˆ) and the altcoin speculation but the big players cannot drop as long as people believe in it.
And the best thing is - as long as people believe in it - nobody loses we will all be winners!!
Let me explain the two scenarios:
Scenario 1:
- In a market where everyone is short term trading because they fear a big crash the market is fluctuating very strong and they take out profits when the market price is dropping. Thus they promote the price drop and additional investors are selling... if a critical amount of speculators has dropped out a fall in prices is inevitable. Many small investors will lose their whole money because the big whales got out early enough
Scenario 2
- Lets say investor A invests at market price 1$ and tells his friends that he had heard from the new technology with big opportunities. So always more investors (B, C, D, ...) are investing and the market price is climbing from 1$ to 10$ when investor Z got in the game.
What about investor A?
If he has invested 100$ his cryptos are worth 1000$ since the price is now 10$ per unit.
Investor Z on the other hand has still his 100$ investment..
So if not all people are selling at the same time and market is growing who loses?
The answer is simple.. the Banks the speculators of the 21th century that haven't recognized the potential of the new technology.
There for we shouldn't measure the price of Bitcoin in the way it grows but rather compare is to the global currency market.
Here the Bitcoin doesn't make up more than 0.14% !!!
So if everybody HODLs we will create a own market like US dollar and nobody has to sell their Bitcoin for USD. More likely it will be the other way round :)
PS: If you like my story please like and share
I will follow if you do
