Bitcoin Revisited a Year Later....
Bitcoin has been trading lower and lower ever since it was listed on the exchange.
What a surprise?
I seriously hope that you weren't one of those people who blatantly ignored my warnings and my advice as to what to do with it when it was at or near its all-time highs. It scares me when I listen to some traders at times. I hear their views and how hopped up they are on all the talk and nonsense surrounding the value of a particular item.
My question to them is simply, "what do you have to measure the value of a cryptocurrency at a particular price"?
The answer is simple. "You don't have any way to value the coin".
In a sense, it is worthless because it is NOT tangible at all. The value comes only from speculation where people can drive up the price as high as they think that the item is worth until it isn't worth anything anymore.
Inflationary pressure is generally what makes the item unaffordable and overpriced. The pricing mechanism that is the free market generally swings too far one way or the other. The drop in price is too low and the rise in price is too high is what I have found over the years.
I know a lot of traders that backed up the truck when Bitcoin was trading around 20000 a coin. Obviously, those people should be out of the market a long time ago but that is the issue isn't it. These people continue to hold on to useless items with the hopes that price will return to its previous highs and they can recover their losses and make money. As I have said to you previously this ideology can last a lifetime. Even if you have gobs of money it makes little to no sense to hold onto a losing position.
Admit you are wrong and that you have been a fool and be done with it.
Where is Bitcoin likely to fall.
My answer is, "I really don't know" but it would seem to me that it is headed to the point it was back in 2010 when I first invested in the idea. As I said I did not hold to the top but I did hold long enough to make a nice profit.
I have a rule that I use for profits.
When you make 100% on your investment take some off the table and let the rest run to the point where you have determined to be the maximum value that you could see the financial instrument running to. It should make sense to you. Don't look for the move to verticle because that its rare event and it is hard to exit at the top. The price generally rises very fast when an instrument goes verticle but it also falls very hard from here too.
There will be short rallies in Bitcoin from time to time to get the bulls crowing again but overall it is headed down. If you are still in it I would advise you to get out. You, nor I know how long that it will stay here. Perhaps a lifetime
. Cheers!
What a surprise?
I seriously hope that you weren't one of those people who blatantly ignored my warnings and my advice as to what to do with it when it was at or near its all-time highs. It scares me when I listen to some traders at times. I hear their views and how hopped up they are on all the talk and nonsense surrounding the value of a particular item.
My question to them is simply, "what do you have to measure the value of a cryptocurrency at a particular price"?
The answer is simple. "You don't have any way to value the coin".
In a sense, it is worthless because it is NOT tangible at all. The value comes only from speculation where people can drive up the price as high as they think that the item is worth until it isn't worth anything anymore.
Inflationary pressure is generally what makes the item unaffordable and overpriced. The pricing mechanism that is the free market generally swings too far one way or the other. The drop in price is too low and the rise in price is too high is what I have found over the years.
I know a lot of traders that backed up the truck when Bitcoin was trading around 20000 a coin. Obviously, those people should be out of the market a long time ago but that is the issue isn't it. These people continue to hold on to useless items with the hopes that price will return to its previous highs and they can recover their losses and make money. As I have said to you previously this ideology can last a lifetime. Even if you have gobs of money it makes little to no sense to hold onto a losing position.
Admit you are wrong and that you have been a fool and be done with it.
Where is Bitcoin likely to fall.
My answer is, "I really don't know" but it would seem to me that it is headed to the point it was back in 2010 when I first invested in the idea. As I said I did not hold to the top but I did hold long enough to make a nice profit.
I have a rule that I use for profits.
When you make 100% on your investment take some off the table and let the rest run to the point where you have determined to be the maximum value that you could see the financial instrument running to. It should make sense to you. Don't look for the move to verticle because that its rare event and it is hard to exit at the top. The price generally rises very fast when an instrument goes verticle but it also falls very hard from here too.
There will be short rallies in Bitcoin from time to time to get the bulls crowing again but overall it is headed down. If you are still in it I would advise you to get out. You, nor I know how long that it will stay here. Perhaps a lifetime
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