Topic: [2017-09-15] This Is Why Traders Have Stopped buying Bitcoin (Read 5790 times)
What is a Blockchain without a token? Incentives are needed to keep the system true and running.
The short answer to the question of whether bitcoin is going to die? It’s not. Bitcoin will survive the China crash, just as the internet survived the dot-com bubble and the global economy survived the Great Recession.
Or the blockchain survives and bitcoin and others cryptocurrencies will die?
It's funny how each article having China as subject, is using words and terms that can't be confirmed, nor denied at this point. Why can't they just remain holding a conservative stance till things are becoming clear and actually confirmed? This only feeds the already rising uncertainties amongst the average cryptocoiners. Something that pisses me off big time, is that people act like something horrible has happened to this market, while in reality we are still 270% in the green! People shouldn't discard the fact that we entered this year below the $1000 level, but yet this negativity has got the better of them....
As the price of BTC skyrocketed in 2017 (going from about $100 per coin in January to a high of nearly $5,000 early in September) the commentary was a lot like that on the internet itself in the 1990s. Bitcoin was global and governments can’t touch it, they said.
Somebody has lost a zero in there.I don't know what charts or coins the author was following, but in January BTC was trading for ~700 at the lows.
Was that supposed to add to the drama or something, because it didn't
If the traders weren't buying the price would continue to go down, another mistake by our dear author. I know the article wasn't supposed to be negative, but millions of $ are being turned to BTC every day. For every coin being sold there's a buyer. Stating that nobody is buying and not bothering to check the prices before bringing them up is just making the whole thing look unprofessional.
The short answer to the question of whether bitcoin is going to die? It’s not. Bitcoin will survive the China crash, just as the internet survived the dot-com bubble and the global economy survived the Great Recession.
But China’s move to halt initial coin offerings (ICOs), close bitcoin exchanges and possibly make Bitcoin illegal in that country does hold an important lesson that traders ignored for most of the year.
As the price of BTC skyrocketed in 2017 (going from about $100 per coin in January to a high of nearly $5,000 early in September) the commentary was a lot like that on the internet itself in the 1990s. Bitcoin was global and governments can’t touch it, they said.
The truth is quite different.
The Lesson
Bitcoin is global, just like the internet, but governments can indeed touch it. While cryptocurrency does not need government sanction, it does require government sufferance. China has removed that sufferance.
China can do this. It has made internet freedom an economic good — Jack Ma of Alibaba Group Holding Ltd (NASDAQ:BABA) can see any site he wants. But citizens there accept that there are things you don’t talk about and truths you don’t access, even online. It’s part of the Chinese social contract.
China may be a special case, but it represents nearly one-fourth of all humanity, and it’s not alone. The big trend of 2017 is the nationalization of the internet, with Europeans finding they can make the internet forget them, and even Americans seeking limits on violent rhetoric.
This is now finding its way into cryptocurrency markets.
Size Matters
Another important point is that the size of the market matters when you’re looking to make an investment.
Of all the cryptocurrencies, bitcoin has done better during the crash than others. Bitcoin prices are down 30%, but those of Ethereum have been cut in half. This is also true for coins like Ripple that were supposedly based on other factors, like international trade.
The bigger a market, the more liquid it is, and the more resistant it is to shocks. Bitcoin’s share of the cryptocurrency market was down to 40% a few months ago. It’s now back up to 50%,
Cryptocurrency boosters are trying to buoy the market by writing about how celebrities are bitcoin curious or professional traders are giving bitcoin a second look, but if you read closely the traders aren’t buying. They are waiting to see where the price stabilizes.
You should, too.
https://investorplace.com/2017/09/this-is-why-traders-have-stopped-buying-bitcoin/#.Wb1KT7KGOiN
But China’s move to halt initial coin offerings (ICOs), close bitcoin exchanges and possibly make Bitcoin illegal in that country does hold an important lesson that traders ignored for most of the year.
As the price of BTC skyrocketed in 2017 (going from about $100 per coin in January to a high of nearly $5,000 early in September) the commentary was a lot like that on the internet itself in the 1990s. Bitcoin was global and governments can’t touch it, they said.
The truth is quite different.
The Lesson
Bitcoin is global, just like the internet, but governments can indeed touch it. While cryptocurrency does not need government sanction, it does require government sufferance. China has removed that sufferance.
China can do this. It has made internet freedom an economic good — Jack Ma of Alibaba Group Holding Ltd (NASDAQ:BABA) can see any site he wants. But citizens there accept that there are things you don’t talk about and truths you don’t access, even online. It’s part of the Chinese social contract.
China may be a special case, but it represents nearly one-fourth of all humanity, and it’s not alone. The big trend of 2017 is the nationalization of the internet, with Europeans finding they can make the internet forget them, and even Americans seeking limits on violent rhetoric.
This is now finding its way into cryptocurrency markets.
Size Matters
Another important point is that the size of the market matters when you’re looking to make an investment.
Of all the cryptocurrencies, bitcoin has done better during the crash than others. Bitcoin prices are down 30%, but those of Ethereum have been cut in half. This is also true for coins like Ripple that were supposedly based on other factors, like international trade.
The bigger a market, the more liquid it is, and the more resistant it is to shocks. Bitcoin’s share of the cryptocurrency market was down to 40% a few months ago. It’s now back up to 50%,
Cryptocurrency boosters are trying to buoy the market by writing about how celebrities are bitcoin curious or professional traders are giving bitcoin a second look, but if you read closely the traders aren’t buying. They are waiting to see where the price stabilizes.
You should, too.
https://investorplace.com/2017/09/this-is-why-traders-have-stopped-buying-bitcoin/#.Wb1KT7KGOiN
Jump to: