Bitcoin Island - A Metaphorical View of Dropping Bitcoin Prices
tl:dr Bitcoin is like island real estate, and you should be happy to see the price drop.
Watching the price drop today, I realized that I was actually slightly happy to see the price dropping, which surprised me. The reasoning is...
I don't care about the value of my current holdings, because I'm holding (most of) them for 10 or 20 years, at least.
But I'd like to buy more, over time, in periods when I'm lucky enough to have a bit of disposable income.
So, when the price drops like this due to "market momentum" even though good news is coming out every single day, faster and faster, I only see these drops as a chance to get more bang for my fiat buck when buying more BTC.
I understand there could be some non-public news that is affecting the market, but if there was a critical failure in BTC, the price would drop much faster.
And a critical, total failure is the only thing that would cause me to divest.
So, until the fat lady sings, (i.e., Gavin Andreson and Andreas Antonopoulos give a joint press conference announcing Bitcoin is dead, and then weep together arm-in-arm in front of the microphone) I'm generally happy to see the BTC price drop, because it means I can afford a slightly bigger slice of the 21,000,000 that will ever exist.
Metaphorically, it's like if you were investing some of your income to buy land on an island, and you knew you were going to hold that land for 15 years. For the very early period of that 15 years you'd want the price to go DOWN, not up. You only want the value to rise in the years leading up the period where you want to exchange some of that land for other things.
To complete the analogy, over the next 15 years, there is a chance that the island could be the next Manhattan (a good chance, if you ask me) and even a tiny piece of it could become incredibly valuable, and there also is a small chance that the island could be totally submerged by water and your investments could be worthless.
Lastly, Jeff Bezos could make the island almost entirely immune to submersion by giving the island his official approval and accepting parcels of land as valid currency for buying things from Amazon.
(Which brings up another question... Could Jeff Bezos -- someone who loves innovation and new technology -- live with himself if "Bitcoin Island" disappeared into the ocean, gone forever, knowing that a simple "thumbs up" from him could have saved it?)
Edit: Thanks to helpful comments, I've realized this analogy ONLY applies to people who are planning to buy more Bitcoin. If you don't plan to buy more BTC, you want the price to go straight to the moon, with no detours!
Quelle:
http://www.reddit.com/r/BitcoinMarkets/comments/2130ix/bitcoin_island_a_metaphorical_view_of_dropping/