Topic: The higher BTC goes, the bigger the risk/reward ratio and the less buyers enter - page 4. (Read 797 times)
March 18, 2021, 11:33:12 PM
I am tired of these ridiculous arguments from noobs. If BTC goes up, then the risk/reward ratio doesn't get larger. On the other hand, the future prospects will get better as more and more investors enter the market. Investment always picks up pace when an asset is moving up. No one want to invest in an asset when it is crashing. Things would be different if the asset is overpriced. But that is not the case with BTC. Even at current levels, Bitcoin is underpriced.
March 18, 2021, 05:42:54 PM
If they buy @ $100k. They don't have to wait up to $200k if they want to make profit.
There's a percentage that they can take profit if they want to. Like if it goes $110k then there's already a 10% of profit and so on and so forth. Buying bitcoin today seems to be expensive for some.
But if you go back to the past, many have expressed the same thoughts about bitcoin's price, stability, adoption and future.
There's a percentage that they can take profit if they want to. Like if it goes $110k then there's already a 10% of profit and so on and so forth. Buying bitcoin today seems to be expensive for some.
But if you go back to the past, many have expressed the same thoughts about bitcoin's price, stability, adoption and future.
March 18, 2021, 01:38:18 AM
I don't think that we have to worry about it though, as much as the prices go up, I think that people will still be interested in bitcoin no matter what. Yes, the risk/reward ratio goes up but that comes with almost any investment and I think that it doesn't really go up, the prices just go up so it sort of acted like an illusion that the risk/reward ratio go up too. It is the fault of the people that entered in bitcoin at the higher prices.
March 18, 2021, 01:32:46 AM
I agree with you, because this is not just a guess-it is information that has been confirmed by many experts and actually makes sense. But it seems to me that the biggest issue is precisely the time frame. And no one can say exactly when this is going to happen and what potential will meet our expectations 100%. And yet in theory it is possible to imagine such a situation - that bitcoin at some very unexpected moment, right on the peak can lose its value and collapse sharply at the very moment when people will be celebrating their profits. I do not fully believe and understand such independence of bitcoin and I think that in time it may present not only pleasant surprises.
Well, such a development of events may well happen. The whales will always be interested in rocking the price boat for super profits. Therefore, the price of bitcoin rises or falls sharply when we least expect it. However, a planned collapse in the price could actually cause panic in the market, especially if the price of bitcoin is very high. Then, after all, every bitcoin holder will be very worried about the safety of his capital. In this case, a domino effect may well occur. January 15, 2021, 05:31:12 AM
This is quite true based on our point of view as individual investors or small buyers of cryptocurrency but may not be holding true with big institutional investors who are actually used to smaller ROI. Getting a 10% return per year is actually not so bad if you are a fund manager and here in Bitcoin they can make more, that is assuming that Bitcoin will never go back to its "winter" history. I am sure that we are all afraid that after the bull run there can be a big dump that can erase all the gains we are seeing so far. And with Bitcoin, nobody can really guarantee it will never happen. We have to hope for the best while at the back of our mind to be prepared for the worst.
January 15, 2021, 04:22:21 AM
It's good that you understand this specifics and give such valuable advice.
Because, unfortunately, not all people can be so critical and attentive to the situation and because of that they encounter certain difficulties and then cannot understand why their expectations are not met.
And that probably distinguishes a professional from an amateur who just sees the money and doesn't want to understand the cause-and-effect relationship.
And of course we should not forget that the situation can change at any time and bitcoin has proved that to us many-many times. So, you should not think that this time everything will be different and you can act as it is said in articles from the Internet. It will not lead to profit - that's a fact.
Because, unfortunately, not all people can be so critical and attentive to the situation and because of that they encounter certain difficulties and then cannot understand why their expectations are not met.
And that probably distinguishes a professional from an amateur who just sees the money and doesn't want to understand the cause-and-effect relationship.
And of course we should not forget that the situation can change at any time and bitcoin has proved that to us many-many times. So, you should not think that this time everything will be different and you can act as it is said in articles from the Internet. It will not lead to profit - that's a fact.
January 15, 2021, 04:20:21 AM
In any situation, don't expect everything to be easy. Because any asset has a certain specificity and it has to be studied in detail if you decide to use it permanently or choose it as a long-term investment. Of course, this is especially true for cryptocurrencies, because they are one of the most serious and unpredictable assets and they often go through changes that even great experts cannot predict. So, you just need to move gradually, try to spend enough time on analysis and generally not to fuss and not to work in this direction with a lot of money if you do not yet have confidence and sufficient experience.
January 14, 2021, 11:02:53 AM
2. BTC is limited in supply (~15 M active coins for the whole world is nothing!)
I am increasingly curious that if supplies run out, how will the whales and miners act? then where would we go if bitcoin price exceeds $ 100,000, even a million. Will the privilege of bitcoin be lost?
I am very worried if in the end those who own bitcoin are millionaires. small traders rubbing against the bottom waiting for the whales to give it a chance. and if it doesn't deserve bitcoin
it says finish?
January 14, 2021, 11:00:49 AM
Of course one who enters into the market has less benefits than one who bought them when there is not enough data to analyze and invest. But still they can be able to make profits but the risks are considerable low than when it was in initial stage to the capital not just the value of capital.
January 14, 2021, 10:48:19 AM
people can have an advantage from bitcoin even if price will not double each time.
just because there is an intrinsic advantage to store something with "limite" supply despite collect FIAT money (that has by nature a tendency to become inflactive).
Ok probably we will not see again a big spike like the past, but it will be the same something valuable and useful as a store of value.
just because there is an intrinsic advantage to store something with "limite" supply despite collect FIAT money (that has by nature a tendency to become inflactive).
Ok probably we will not see again a big spike like the past, but it will be the same something valuable and useful as a store of value.
January 14, 2021, 10:45:20 AM
Isn't increasing buyers the reason bitcoin recently topped out at USD40K+? Rising price means there are more buyers than sellers.
Not necessarily. There is a larger amount of BTC bought than sold, but it doesn't mean there are more or new participants in the trading sessiom than before. If I had a million bucks, I could create a big fuss in the market within seconds. It could be institutional investors just pumping millions into the market while the number of traders is decreasing.EDIT: there doesn't even have to be more BTC sold than bought. Liquidity is part of the game as well. If someone comes in and sells a thousand BTC, the liquidity could make it easier to pump the market with less than what was sold earlier.
January 14, 2021, 10:20:11 AM
Isn't increasing buyers the reason bitcoin recently topped out at USD40K+? Rising price means there are more buyers than sellers.
I read in an article that many institutions hopped on the bandwagon and played a major part in the notorious uptrend. That's something we can consider unprecedented because, for the longest time, bitcoin's price is almost totally reliant on individual buyers.
This could mean that institutions are just beginning to trust bitcoin--and it's a good thing. It could also mean we can expect more of them to invest and the existing ones to invest more.
So, I agree with you that it will reach 100K, but I don't agree that there will be fewer buyers from that point onwards.
Institutions are just warming up and BTC's price already reached USD40K. Imagine what can happen if they get serious and more of them join in.
I read in an article that many institutions hopped on the bandwagon and played a major part in the notorious uptrend. That's something we can consider unprecedented because, for the longest time, bitcoin's price is almost totally reliant on individual buyers.
This could mean that institutions are just beginning to trust bitcoin--and it's a good thing. It could also mean we can expect more of them to invest and the existing ones to invest more.
So, I agree with you that it will reach 100K, but I don't agree that there will be fewer buyers from that point onwards.
Institutions are just warming up and BTC's price already reached USD40K. Imagine what can happen if they get serious and more of them join in.
January 14, 2021, 09:13:04 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.
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.
Dont get too concerned about the "X" factor [x10, x25, x50].
Overall Bitcoin is going to grow and doubling your investment is always special.
If you are a Hodler there is no risk, Satoshi's or Bitcoin quantities in your wallet
will always remain the same regardless of whether the $ value rises or falls.
And the fear of FOMO will also become smaller, as people will at one point accept, that the train has left the station.
You could have said when Bitcoin was valued at $1000 that for many people the
train had left the station, the same when it was at $15000.
What about all the price points in the last month, $20k, $30k, $40 - the train is
still at the station. ok you might not be able to get a seat in the front carriage
but there are definitely seats in the carriages further back!
Of course, should btc show convincing signs that it could reach 1 Million very quickly, then the whole picture changes.
Very quickly? time is not an issue, it doesnt have to create proof, we dont need
proof. Looking for proof will be the difference on either buying at $38000 or
$48000 or higher. Act Now!
January 14, 2021, 08:28:42 AM
The volatile nature of Bitcoin has made the BTC investors really greedy. 
Is it mandatory for the Bitcoin price to double every now and then?I don't think so.
I think that the risk/reward ratio is pretty much the same,but most of the investors will have to buy smaller fractions of a Bitcoin.
It's true that there are less buyers,who want to buy at a ATH price,maybe that's why the price won't reach 50K USD anytime soon.
Is it mandatory for the Bitcoin price to double every now and then?I don't think so.
I think that the risk/reward ratio is pretty much the same,but most of the investors will have to buy smaller fractions of a Bitcoin.
It's true that there are less buyers,who want to buy at a ATH price,maybe that's why the price won't reach 50K USD anytime soon.
January 14, 2021, 08:06:53 AM
What creates value is the extent to which people are willing to use it because it has a real benefit in itself or what can be used from it.
Bitcoin provided a different model from many central financial solutions, so it is easy to distinguish that these currencies have a value and it does not matter how much that value is as long as Bitcoin can be divided into small parts.
Satoshi is now less than the dollar 0.00038283 and therefore we still have a lot of time to be afraid of the dollar's value.
Bitcoin provided a different model from many central financial solutions, so it is easy to distinguish that these currencies have a value and it does not matter how much that value is as long as Bitcoin can be divided into small parts.
Satoshi is now less than the dollar 0.00038283 and therefore we still have a lot of time to be afraid of the dollar's value.
January 14, 2021, 07:33:59 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 agree but we also have to accept the fact that even the price of Bitcoin reaches $100,000 buyers will still acquire some fractions depending on how much they are willing to invest no matter how much the price is because that is the spirit of being a Bitcoin hodler/investor and FOMO will still exist. 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.
January 14, 2021, 07:25:46 AM
The root reason to invest is profit that is taken as percent of gains from original capital.
It does not make sense to say it is not profitable or feasible to invest in bitcoin. Bitcoin has many incremental units and when you invest, you don't have to mandatarily invest in Bitcoin. You can invest 0.1 Bitcoin, 0.01 bitcoin.
The magic for investment in bitcoin is in long run, you will have very less risk than altcoin investment. I believe that bitcoin will increase in price after each 4 year but altcoins can die after 4 years. With altcoins, you will even not have opportunity to get your capital back. In worst altcoins, worst market, you will lose all.
It does not make sense to say it is not profitable or feasible to invest in bitcoin. Bitcoin has many incremental units and when you invest, you don't have to mandatarily invest in Bitcoin. You can invest 0.1 Bitcoin, 0.01 bitcoin.
The magic for investment in bitcoin is in long run, you will have very less risk than altcoin investment. I believe that bitcoin will increase in price after each 4 year but altcoins can die after 4 years. With altcoins, you will even not have opportunity to get your capital back. In worst altcoins, worst market, you will lose all.
January 14, 2021, 07:15:32 AM
Is this your conclusion about the price going higher? I think you're wrong because as soon as the price is rising people are curious and wanted to join the trend. You can ask google for that, as soon as somethings going on with the market the people often search about Bitcoin or the crypto industry. The only problem with those people is their lack of understanding and some of them jump to conclusions after they saw some videos about Bitcoin. the truth if the matter is, they need lots of time to study, and as soon as they understand what's really going on with the market most of those people will invest as you can see the result are shown to you right now in the crypto market.
January 14, 2021, 06:10:29 AM
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?
I guess that there is a misunderstanding on how human psychology works.
The faster the price grows, the more the news advertising this attracting more new buyers, many of them ignoring the risks.
Of course, many of them will sell lower than they've bought when the FOMO bubble bursts, but the ones with patience and who have invested money they did afford to lose will be happy and wise when the next cycle will go on.
January 14, 2021, 06:07:13 AM
Bitcoin is definitely a better option in almost all cases. Its digital nature enforces a limited supply, fungibility, high divisibility, and great portability.
Moreover, some experts consider BTC to have an even lower inflation rate due to its cyclic reward halving which makes it even better than gold for long-term investors.
Moreover, some experts consider BTC to have an even lower inflation rate due to its cyclic reward halving which makes it even better than gold for long-term investors.
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