Bitcoin itself has no value at all unlike Gold and Silver which can be used as money and used in everyday items like solar panels. Price is purely speculation, yes if more people believe price is going to go up and buy it then price will go up, the only problem with this is you need more people to keep buying and eventually the supply of fools will run out.. This is when price crashes and makes people poor. This is why every man and his dog knows about Bitcoin because it is just a pyramid scheme.
If you cant see Bitcoin is in a bubble then you need to give up trading. After a drop price always makes a massive rally to make all time crazy highs, this is just to condition people into holding onto there Bitcoin when price crashes again because now they are conditioned to thinking price always goes up! One time in the near future this is going to happen where price crashes and doesn't go back up making the people at the top even richer and the small people will lose everything.
In Bitcoin there is no value at all, you can only make the money other people lose, it is a massive pyramid scheme. Some larger traders have entered Bitcoin positions which has pushed price up to draw more people into buying before price dumps. Bitcoin almost has a cult following, and we all know how most cults end up.
I could go on all day about why Bitcoin WILL fail but i wont. Feel free to message me if you want to know more.
Supply and demand my friend. Being bought up way faster than it’s being produced. Also all Fiat currencies have no value. People aren’t buying btc to hedge against gold, it’s a hedge against Fiat printing and inflation. With a over a quarter of all dollars in existence being printed this year alone and btc being capped at 21 million I’d say it’s a pretty good hedge.
Premier_FX
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@EasyCharts, How can something that is capped be useful in the long run? It wont keep up with inflation and growth.
EasyCharts
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@Premier_FX, Well the capping ensures that it can't be inflated to infinity like fiat currencies, hence it'll actually hold it's value and most likely increase as demand is only increasing and is at all time highs. Bitcoin is the best performing asset of the past decade, this is always worth keeping in mind.
gwfarrow96
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I believe you've got bitcoin all wrong. It is a brand new asset class and you only need to ask Michael Saylor, Grayscale and Paypal for confirmation of that. The last coin will be mined in 2150, all the while being a deflationary asset with an absolute limit of 21 million coins. Combine that with new and disruptive technology and limitless ways to incorporate blockchain and coins within the defi space you've got one of the best trades of the century...
If you has knowledge of the 4 year cycle you'd realise that while speculative to begin with Bitcoin has now become a hedge against fiat inflation which of course is not backed by anything tangible but has intrinsic value because our governments tell us they do... and even less value after 10 trill of QE. We will see pullbacks of up to 40% but that does not detract from Bitcoin's long term use case. The only threat to BTC is potentially China and the FED.
Gwalleo
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@gwfarrow96 also another thibg to remember is that bitcoin has a cost associated with it to be created. The mining process requires large amounts of CPU and electricity. FIAT currency on the other hand is printed by the people at the very top of the financial pyramid, out of nothing, and facilitates one of the biggest scams in the world... Fractional reserve banking.