I just want to know if anyone else feels the same way about this. I love that the price of BTC is way high but this seriously fast increase in price somewhat worries me. I don't want to say anything bad about BTC, I just feel like it's kinda out of control, that's the point though. I don't know could it ever be possible that the price decreases to where it was say 6 months ago or less? Where do you guys think it will level off and who decides the price, I think the traders do but I really have no idea. Let me know what you guys think? Happyyyyy Mining Kano people!
I also wonder, but I treat mining and crypto investments much like stocks and gambling. It is like stocks in that it is more risky than bonds and like gambling in that I only put money in that I will not destroy my future if it goes bust. Obviously there is much more up side than this, but there is a small chance that it will all fall apart. If your risk tolerance is lower than this, then it is best to convert enough earnings to pay your power each month. That makes your mining operation much less risky. Anyway, this is risky business, but as we have all seen, there is a lot of upside potential too. I hope this helps gives you some options.
Bitcoin was created to eat Fiat currency. The M2 money supply during the Obama Administration went parabolic. They created trillions of Fiat dollars and every industrialized country followed suit. They had to do it to keep the Ponzi scheme going (confidence game). They can only inflate traditional markets so much without hyperinflation taking hold and destroying confidence in the system. China is 4 times more in debt than the United States on a GDP basis. So, what do you do to keep the ponzi going? You design a Fiat Currency eating machine, something that will eventually, over time, eat all the bloated assets up and replace their valuations into a Global means of exchange. Ta Da!! Bitcoin and other crypto currencies.
Now, with that said, there are going to be temporary pullbacks and occasional bear markets in the Crypto's. The Golden Rule I follow is that I don't own anything in this space that is not mined. Bitcoin is and will be the Gold Standard for all others to follow. There will be consolidation, but eventually all Crypto will either be sucked up by Bitcoin or will be integrated to conduct Hotswaps with Bitcoin. 1 year prediction: July 2018 BTC 22K, end of FY18, BTC no less than 50K. Remember we have a halving coming up, which makes all BTC worth even more $$$.
Fundamentals are as follows: Limited Supply, less than 1% fiat currency participation, early innovation stage is still in progress, some early adoption into mainstream (think Japan) = Huge growth into the near term, huge growth long term.
Finally, if BTC garners 1% of the worlds Fiat wealth, BTC = 1 million dollars or more per coin. HODL