The higher BTC goes, the bigger the risk/reward ratio and the less buyers enter - page 3.

Jemzx00

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Quote from: buwaytress on March 20, 2021, 07:13:40 AM

You can't possibly, especially if coming from traditional finance (sorry to use such an overused term) that entering Bitcoin now or any time in the future could be riskier than entering at any period before 2020.

Every block it mines makes it more secure, more viable, more valid than ever before. Every crisis passed, every new upgrade made, makes it fundamentally stronger, more battle tested, more mature.

Price in short and medium terms are but flashes in the long term. Rewards may be financially "less" but risk is also significantly reduced. Ratio sustained.

People have been looking at bitcoin as high reward investment as the demand for it have significantly increase due to adoption from major companies such as Tesla, Paypal and many more but they must rather think of it as secure and more viable investment as with these adoption will surely provide support on the market.
The reward might not be able to double in a short amount of time like before but it will more secure and stable in the long run. Just as you've said, the ratio is sustained.

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.

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Quote from: Tekunda on January 12, 2021, 11:06:13 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.

To understand how BTC works, you need to look at the history of BTC development. History shows us that BTC showed new peaks in its price every four years, and after each such peak, its price went down for a correction. Now, everything is likely to happen the same way, by the end of 2021 BTC will show a new price peak and then go into a deep correction. It is worth noting that, no matter how it was, BTC is a high-risk asset, which has already made it possible to make good money, but also made it so that some investors lost their funds. With the rise in the price of BTC, there is growing interest for investors, as well as doubts about buying it. This is logical, since with a new peak in the BTC price, the risk increases.

oHnK

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Quote from: panganib999 on March 20, 2021, 08:25:19 AM

Quote from: buwaytress on March 20, 2021, 07:13:40 AM

You can't possibly, especially if coming from traditional finance (sorry to use such an overused term) that entering Bitcoin now or any time in the future could be riskier than entering at any period before 2020.

Every block it mines makes it more secure, more viable, more valid than ever before. Every crisis passed, every new upgrade made, makes it fundamentally stronger, more battle tested, more mature.

Price in short and medium terms are but flashes in the long term. Rewards may be financially "less" but risk is also significantly reduced. Ratio sustained.

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.

I don't see that this is any more risky because from the start BTC and other crypto are volatile asset types so they never change at the moment. We can mitigate the risks that exist in BTC with the knowledge that we continue to learn and even experiences from various parties can also be an insight for us in reducing the risk of this type of investment. Risk management is very closely needed in volatile assets so that for me, until now, there is no difference.

panganib999

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Quote from: buwaytress on March 20, 2021, 07:13:40 AM

You can't possibly, especially if coming from traditional finance (sorry to use such an overused term) that entering Bitcoin now or any time in the future could be riskier than entering at any period before 2020.

Every block it mines makes it more secure, more viable, more valid than ever before. Every crisis passed, every new upgrade made, makes it fundamentally stronger, more battle tested, more mature.

Price in short and medium terms are but flashes in the long term. Rewards may be financially "less" but risk is also significantly reduced. Ratio sustained.

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.

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Quote from: virtualdn on January 12, 2021, 11:08:45 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.

there is no debate with your opinion, I agree with this...
Bitcoin price today is not a fixed Bitcoin price in the next 10 years and 20 years. Bitcoin price has the potential to continue to rise as time goes on.

buwaytress

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You can't possibly, especially if coming from traditional finance (sorry to use such an overused term) that entering Bitcoin now or any time in the future could be riskier than entering at any period before 2020.

Every block it mines makes it more secure, more viable, more valid than ever before. Every crisis passed, every new upgrade made, makes it fundamentally stronger, more battle tested, more mature.

Price in short and medium terms are but flashes in the long term. Rewards may be financially "less" but risk is also significantly reduced. Ratio sustained.

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Quote from: dihari on March 20, 2021, 01:00:51 AM

Quote from: mariayaz on March 20, 2021, 12:53:22 AM

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.

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.

shoreno

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btc is a good investment but to invest in as much as 100k can depend on the people if he has a good buying power . yes we are already used to smaller folds but thats small anyway but 100k usd is in a whole nother level because the profit that youl be getting when btc reaches it is also huge .

dont say that when btc reach 100k the price just only double but you think 100k is easy and small ? well think again and theres no need to ask for another double because we can always profit even if that didnt happen .

dihari

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Quote from: mariayaz on March 20, 2021, 12:53:22 AM

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.

mariayaz

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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.

Spack17

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Of course it seems like it is riskier to invest in Bitcoin when the price goes up to much greater levels. Because we have seen many examples like Bitcoin price reached great ATHs and decreased sharply after it. I wouldn't be surprised if we see the same thing soon also. But to tell the truth, it is actually not a thing that we can predict one hundred percent correctly. So there is always a possibility for you to double your investment, for example.

rosebrand

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For me I think investing in bitcoin isn't that risky like most altcoins when bitcoin prices hits a new all time high and starts retracing in prices its deep isn't that deep and would surely bounce back, while for some altcoins after hitting a new Ath prices start dumping and will keep going down and coming up again would become very hard because alot of people has dump huge amounts of the coins, this mostly happens to coin with low liquidity . There are people who will always buy bitcoin regardless of the price because there believe bitcoin will always keep pushing higher

dolcemariposa1

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Many people are buying Bitcoins without seeing the price it has today in fiat value, due to the potential it continues to have as a reserve of value in the future, so it is still cheap

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Looking back at the Bitcoin pumps and dump times I noticed that only altcoins have experienced a significant decline in value compared to Bitcoin. In addition to Bitcoin, is there any crypto worth owning that doesn't drop in value when Bitcoin falls in price? So keeping Bitcoin is safer than other altcoins. People may not buy Bitcoin much anymore, but institutions do, and they've been buying continuously since the beginning of 2021. I believe that watching the big boys action will be a way for people to keep buying Bitcoin.

orions.belt19

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Funnily enough, I think its quite the opposite and probably even more buyers will enter once the price gets higher. Once it hits $100k people will think, what's this asset? And why is it valued as such? I find that most people will get in once price is high, and not when its still low because it has been established that there is value once price is high. Even amongst traders this is common as there are those who would chase the highs. If people believe that Bitcoin is worth that value, then there will still be buyers.

LordShanken

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Price of any stuff goes up only if there are buyers willing to buy that stuff at high rates. The good thing about BTC is that you can buy it in chunks and this is very helpful for people with small capital. Whether you have 1 million or 10 dollars, in both cases you can buy bitcoin, it’s open for everyone.

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Quote from: adzino on March 19, 2021, 02:07:32 AM

If you are talking about the short term risk/reward ratio, then you are correct, the higher the price goes, the higher the chance of it falling back. But if it's going to be long term investment, no matter when you invest, you will eventually get profit as long as you don't sell them at a loss.

Hopefully that will be what the bitcoin market is going to follow because that is how stock market goes in a long term. And if bitcoin were to really do that then that means that in the future the growth is going to be much higher than what is the price currently. The people that fear the drops in bitcoin prices are the people that are greedy and wants to get their money quickly thinking that that is how investing works.

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If you are talking about the short term risk/reward ratio, then you are correct, the higher the price goes, the higher the chance of it falling back. But if it's going to be long term investment, no matter when you invest, you will eventually get profit as long as you don't sell them at a loss.
People can always buy fractions of a coins, don't forget that. But this is also true, less buyers enters the market. Hence, this is also why market correction is an healthy event. No matter how much people hate market corrections, it creates a chance for more buyers to enter the market and helps the price go even higher.

maydna

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Even if the price increases higher, I think people will still buy bitcoin. If they can't buy 1 bitcoin directly, they can buy from a small fraction and hold it until they can have a good amount to sell and make a profit. Perhaps, that is easy to buy bitcoin if those people have a lot of money to buy 1 bitcoin without a problem. If people can see the opportunity to use bitcoin as their investment and make a big profit in the future, they will try to buy bitcoin, especially if the bitcoin price can be down a lot. They will not wait for a long time to buy because the downtrend will come after the price increases.

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Quote from: Tekunda on January 12, 2021, 11:06:13 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.

I get what you say but I think you are underestimating bitcoin, there is still a lot of potential, only a few institutional investors have come, most regular people are still out of bitcoin and have not entered the market, now they are afraid to enter precisely because of the reason you are exposing but this is going to change especially if people begin to spend the money they have received from their governments and we being to see inflation going up relatively quickly during the next months.

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