Of course it would be slower when we are already at a high price and almost everyone is already on board.
But that doesn't mean that we wouldn't see it go higher we only have limited supply so the potential growth would continue.
Topic: The higher BTC goes, the bigger the risk/reward ratio and the less buyers enter - page 2. (Read 786 times)
May 11, 2021, 07:31:20 AM
May 11, 2021, 07:05:36 AM
If btc goes to 100k it will "only" have (more or less) doubled from its ATH.
From there it will need to rise another 100k in order to double again. I don't say this is not a good investment, but first of all crypto owners are spoiled, until up to now we were used to 10-fold, 20-fold + increases, so doubling the money has not been really special.
But this smaller reward ratio is paired with a much bigger risk ratio, since btc's swings in a correction period will also get bigger.
For hodlers who are in from the very beginning, it won't matter much probably, but where will btc find new buyers when it has reached 100k and needs to go up another 100k in order to double again in price?
And the fear of FOMO will also become smaller, as people will at one point accept, that the train has left the station.
Of course, should btc show convincing signs that it could reach 1 Million very quickly, then the whole picture changes.
From there it will need to rise another 100k in order to double again. I don't say this is not a good investment, but first of all crypto owners are spoiled, until up to now we were used to 10-fold, 20-fold + increases, so doubling the money has not been really special.
But this smaller reward ratio is paired with a much bigger risk ratio, since btc's swings in a correction period will also get bigger.
For hodlers who are in from the very beginning, it won't matter much probably, but where will btc find new buyers when it has reached 100k and needs to go up another 100k in order to double again in price?
And the fear of FOMO will also become smaller, as people will at one point accept, that the train has left the station.
Of course, should btc show convincing signs that it could reach 1 Million very quickly, then the whole picture changes.
In my opinion, BTC reaching its 1 Million USD mark is enough for me and no one really knows if it will be worth a million USD in the future. You could still be profitable in BTC even if it reaches the 100k mark and depends on the risk management of the holder.
March 28, 2021, 11:09:50 PM
If btc goes to 100k it will "only" have (more or less) doubled from its ATH.
From there it will need to rise another 100k in order to double again. I don't say this is not a good investment, but first of all crypto owners are spoiled, until up to now we were used to 10-fold, 20-fold + increases, so doubling the money has not been really special.
But this smaller reward ratio is paired with a much bigger risk ratio, since btc's swings in a correction period will also get bigger.
For hodlers who are in from the very beginning, it won't matter much probably, but where will btc find new buyers when it has reached 100k and needs to go up another 100k in order to double again in price?
And the fear of FOMO will also become smaller, as people will at one point accept, that the train has left the station.
Of course, should btc show convincing signs that it could reach 1 Million very quickly, then the whole picture changes.
This reasoning has a certain meaning. Indeed, now the price of bitcoin is quite high, over $ 55,000. Further increases in its price will be more difficult, and the risk for bitcoin holders will be more and more. People will worry about the large amounts invested in bitcoin, and with large price fluctuations, panic is likely. It will largely depend on how large the volatility of the bitcoin price will be, both this year and in the next few years. With high price volatility, the fear of bitcoin holders will be much higher. This will hinder its further price growth. From there it will need to rise another 100k in order to double again. I don't say this is not a good investment, but first of all crypto owners are spoiled, until up to now we were used to 10-fold, 20-fold + increases, so doubling the money has not been really special.
But this smaller reward ratio is paired with a much bigger risk ratio, since btc's swings in a correction period will also get bigger.
For hodlers who are in from the very beginning, it won't matter much probably, but where will btc find new buyers when it has reached 100k and needs to go up another 100k in order to double again in price?
And the fear of FOMO will also become smaller, as people will at one point accept, that the train has left the station.
Of course, should btc show convincing signs that it could reach 1 Million very quickly, then the whole picture changes.
March 23, 2021, 01:14:37 AM
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And yeah, on top of your question. I am also thinking if institutions and billionaires do keep their produced bitcoin or sell it immediately? And how much bitcoin they have? How much it costs them to produce 1 bitcoin? What's their revenue model? Maybe they keep their produced bitcoin but they do pay salaries with it.
And yeah, on top of your question. I am also thinking if institutions and billionaires do keep their produced bitcoin or sell it immediately? And how much bitcoin they have? How much it costs them to produce 1 bitcoin? What's their revenue model? Maybe they keep their produced bitcoin but they do pay salaries with it.
March 22, 2021, 11:37:30 PM
If they open their minds about bitcoin's investment, they will not think about it too late to invest in bitcoin because they still have time to start buying bitcoin. If they know that they can buy fractions by a fraction of bitcoin, they will try to use the money they do not use for anything, and they will hold it after they finish buying bitcoin.
Waiting for the dropping of the price will always recommend for people who want to buy bitcoin because that can reduce their risk from fluctuating the bitcoin price. Perhaps, they need to learn more about the bitcoin investment side before buying bitcoin.
What happens is that many people think it is too late because once they find out that you could have bought bitcoin for less than a dollar at the beginning of its life and now you need to pay 55k they are reluctant to do it, they do not understand that such a low price does not matter anymore because we are never going to see it again, what matters is its current price and what price it can reach in the future and under that perspective bitcoin is still trading at a relatively cheap price. Waiting for the dropping of the price will always recommend for people who want to buy bitcoin because that can reduce their risk from fluctuating the bitcoin price. Perhaps, they need to learn more about the bitcoin investment side before buying bitcoin.
March 21, 2021, 01:26:24 PM
Bill Gates made his money through innovation and if he made money investing in the stock market then it would have been a different story, so you cannot expect people like that to invest heavily. The major funds are invested by financial institutions who always identify the smart market to reap the profit and so is the reason billions are invested even when the price is soaring at an all time high valuation.
several large companies such as Tesla have started to adopt bitcoin and many institutions are entering into bitcoin to invest. The higher the bitcoin price, the higher the risk ratio that will occur. Currently Bitcoin price is able to hit a high of $ 60k and will probably continue at $ 100k. the more people understand bitcoin and its benefits, the more funds will come in and make bitcoin rise. The risk will indeed be higher because the price fluctuates very quickly. March 21, 2021, 11:18:40 AM
Some rich people have jumped on this new found digital gold and others like Mr Bill Gates have clearly shown no interest in it, despite knowing about the digital currency...its all up to them , maybe they don't understand crypto but with time as more institutions endorse crypto I think this is when new money will be pumped in from individuals and institutional money to push price up.
Bill Gates made his money through innovation and if he made money investing in the stock market then it would have been a different story, so you cannot expect people like that to invest heavily. The major funds are invested by financial institutions who always identify the smart market to reap the profit and so is the reason billions are invested even when the price is soaring at an all time high valuation. March 21, 2021, 11:10:44 AM
I agree with what you said, but for now there are still many chances of the price being able to do 2X or 6X because there are still not many super rich people buying bitcoin and advertising
Some rich people have jumped on this new found digital gold and others like Mr Bill Gates have clearly shown no interest in it, despite knowing about the digital currency...its all up to them , maybe they don't understand crypto but with time as more institutions endorse crypto I think this is when new money will be pumped in from individuals and institutional money to push price up. March 21, 2021, 10:50:47 AM
Apologies if this has already been asked, but if BTC and i.e. NANO both see their market caps increase $10 billion in the next year, what happens to each of their prices?
altcoins, specially those with terrible supply amounts are never going up in price over the long run. they can only hope for some pumps that could increase their price in short term.
Quote
Most people will get this wrong because they suck at math Huh or don't fully understand bitcoin.
you don't have to understand bitcoin to know how market cap works!a shitcoin with a massive supply will have a high market cap regardless of it being dumped. and when bitcoin rises and the altcoin dumps its market cap measured in USD sometimes shows increase.
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as more people hold more and more of an asset, the pool of new buyers gets smaller and the pool of potential sellers increases (but that is no guarantee that people buy or sell).
price rise doesn't always need "new" investors. it needs new money. that money could be coming from the old investors investing more money in.I think you missed my point.
The supply of BTC is growing faster than NANO. If people decided to move away from a coin with a growing supply (naturally inflationary assuming demand stays constant), like BTC, into a coin that has no future supply growth, like NANO...its not the total number of coins that is important, it is how fast the supply is growing (or not growing) that gives a DIGITAL currency actual scarcity value (while perception and demand considerations play a big role on the other side of the supply/demand equations).
March 21, 2021, 10:29:52 AM
Apologies if this has already been asked, but if BTC and i.e. NANO both see their market caps increase $10 billion in the next year, what happens to each of their prices?
altcoins, specially those with terrible supply amounts are never going up in price over the long run. they can only hope for some pumps that could increase their price in short term.
Quote
Most people will get this wrong because they suck at math Huh or don't fully understand bitcoin.
you don't have to understand bitcoin to know how market cap works!a shitcoin with a massive supply will have a high market cap regardless of it being dumped. and when bitcoin rises and the altcoin dumps its market cap measured in USD sometimes shows increase.
Quote
as more people hold more and more of an asset, the pool of new buyers gets smaller and the pool of potential sellers increases (but that is no guarantee that people buy or sell).
price rise doesn't always need "new" investors. it needs new money. that money could be coming from the old investors investing more money in. March 21, 2021, 10:13:26 AM
Apologies if this has already been asked, but if BTC and i.e. NANO both see their market caps increase $10 billion in the next year, what happens to each of their prices?
?
Most people will get this wrong because they suck at math or don't fully understand bitcoin. 
?
Answer: NANO goes up 15+ X and BTC drops slightly in price! (based on 3/21/21 being the start date and no changes in protocols over the next year)
To answer the OP, as more people hold more and more of an asset, the pool of new buyers gets smaller and the pool of potential sellers increases (but that is no guarantee that people buy or sell).
?
Most people will get this wrong because they suck at math
or don't fully understand bitcoin. ?
Answer: NANO goes up 15+ X and BTC drops slightly in price! (based on 3/21/21 being the start date and no changes in protocols over the next year)
To answer the OP, as more people hold more and more of an asset, the pool of new buyers gets smaller and the pool of potential sellers increases (but that is no guarantee that people buy or sell).
March 21, 2021, 09:51:18 AM
The risk reward ratio won't change if btc goes higher because its the same regardless of the price. If bitcoin was at $100,000 and if it falls to $50,000 then it would be the same risk to reward ratio as when bitcoin was at $1000 and fell to $500.
What matters though is the amount of money needed to go 2x.
As the price of bitcoin increases, it will take a lot of money to go 2x than it was needed when it's price was low. This is why as bitcoin grows it would be difficult to maximize the return potential.
What matters though is the amount of money needed to go 2x.
As the price of bitcoin increases, it will take a lot of money to go 2x than it was needed when it's price was low. This is why as bitcoin grows it would be difficult to maximize the return potential.
March 21, 2021, 07:39:02 AM
I agree with what you said, but for now there are still many chances of the price being able to do 2X or 6X because there are still not many super rich people buying bitcoin and advertising, we saw the positive effect that paypal brought and that elon musk brought, imagine if Jeff Bezos also buys a lot of bitcoins and amazon accepts bitcoin, imagine if bill gates will also be advertising on bitcoin, imagine that hundreds of companies and governments accept bitcoin as a means of payment and hundreds of banks start investing in bitcoin, i still see great potential for 2X to 6X profit, so i think people are still not afraid to invest in bitcoin. note that the price has not dropped below $40.000 for some time and each time it increases there are no very big drops, this shows a great solidity in the price increases
March 21, 2021, 05:45:31 AM
I strongly believe it will reach 1 Million a coin because:
1. Gold will become obsolete (too hard to move around, to transaction and its supply grows 2% each year)
2. BTC is limited in supply (~15 M active coins for the whole world is nothing!)
3. The future is crypto money, we won't be living in ice age forever
The banks are scary like... they will do everything they can to stop it, but will fail.
1. Gold will become obsolete (too hard to move around, to transaction and its supply grows 2% each year)
2. BTC is limited in supply (~15 M active coins for the whole world is nothing!)
3. The future is crypto money, we won't be living in ice age forever
The banks are scary like... they will do everything they can to stop it, but will fail.
Exactly, Gold will go back to being what it is good for; nice jewelry.
BTC is a store of value never known before, immutable, p2p trustless accountability, unconfiscatable.
BTC gives everyone (7 billion people) more power than a Swiss bank.
The fiat banksters are dead.
March 21, 2021, 04:37:51 AM
Cryptocurrency markets and financial markets in general work in cycles, so does the bitcoin market , currently there are signs that we are getting close to significant levels for bitcoin ( logarithmic resistance), also the cycles of growth has been slowing down.
If we take into account these factors, I would say the risk ratio is very high currently. The best case scenario we hover between 50 and 60k for few months..
If we take into account these factors, I would say the risk ratio is very high currently. The best case scenario we hover between 50 and 60k for few months..
March 20, 2021, 11:58:41 PM
for new bitcoin users / owners who know bitcoin at a price of 80K $, of course they want to benefit from their initial purchase (a common thing in every trade) but those who have bitcoin priced at 20k $ have already reaped several times the profit,
the higher the bitcoin price will definitely be sought after by lovers, who are tempted by the benefits offered but they know bitcon is too late, scary if they buy bitcoin at 80k $ and never instead get a new ATH but it drops like 2018 back to 20k - 30k
the higher the bitcoin price will definitely be sought after by lovers, who are tempted by the benefits offered but they know bitcon is too late, scary if they buy bitcoin at 80k $ and never instead get a new ATH but it drops like 2018 back to 20k - 30k
March 20, 2021, 12:19:00 PM
Actually it is true and in addition, the BTC being a volatile is simply a risk now. I can say that it is very good to invest in BTC as long as you know the basics and the simple idea of it. The more the BTC go bullish the chance of risk getting higher too. But if you learn how to control or to have some explanations in it. But I suggest that we must be aware of the events and other things that might affect BTC because it is unpredictable and risky to push into it or to enter if you don't have amy idea what is happening to it.
Anyway, if someone wants a fast and more volatile market which can provide a huge amount in return then it's better to look into other cryptos which are good in the short run but the risk may be higher compared to bitcoin.
Bitcoin has always been volatile, that has never changed. Only the amplitudes and frequencies change, but that volatility is what's always attracted people to it if in for speculation, so not sure why it keeps being brought up. A market only over 10 years old is expected to behave like this.
I still think people have to stop seeing Bitcoin as a stock. It's really not.
March 20, 2021, 12:11:02 PM
The higher BTC goes, the more people will get awareness of crypto currency. Just 3 years ago when BTC touched $19000, i saw more people getting interested in investing. I dont see people losing interest in investing in crypto when BTC increases with time.
Not losing interest, it's just low new buyers. The only thing that make btc have low new buyers when the price high is, people always thinking it's too late to enter the market. They always thinking the price is too high and waiting for dropping price. It's normal.
March 20, 2021, 10:13:53 AM
-snip
Your comments seem focused on retail investors but we are in a mainly institutional investors phase. Institutions buying Bitcoin are not so focused on the price now being high or not, rather on buying a pristine asset which is going to surpass and substitute gold as the best reserve asset in the world. This is mainly because the cost of capital has gone up a lot during the past year and it seems it will stay like that for a while, being Bitcoin the best-looking asset protect value.
March 20, 2021, 10:03:10 AM
With every 1000 gain I more and more afraid about 2018-like scenario dump. That will really kill me
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