I was thinking about this today.
Banks and Wallstreet are continuously allowing investment into BTC for their customers stock portfolio's and retirement funds(401K and Roth IRA). Since there is only 21,000,000 Bitcoins to ever be created, we are going to get huge price spikes if this trend continues... Think about it... The amount of people buying into BTC right now for retirement funds or stock portfolios will likely be holding for at least a few years, and for retirement a young person could be holding that 1 or 2 BTC from the age of 20 until 65+.
This obviously takes away the supply of BTC people can purchase, which supply/demand says price needs to go higher.
The more and more people are able to invest, the more demand is there. We will see prices of BTC of thousands of dollars for .1 btc and even higher in the next few years.
What do you think, does this seem logical? Time to buy more I think
Banks and Wallstreet are continuously allowing investment into BTC for their customers stock portfolio's and retirement funds(401K and Roth IRA). Since there is only 21,000,000 Bitcoins to ever be created, we are going to get huge price spikes if this trend continues... Think about it... The amount of people buying into BTC right now for retirement funds or stock portfolios will likely be holding for at least a few years, and for retirement a young person could be holding that 1 or 2 BTC from the age of 20 until 65+.
This obviously takes away the supply of BTC people can purchase, which supply/demand says price needs to go higher.
The more and more people are able to invest, the more demand is there. We will see prices of BTC of thousands of dollars for .1 btc and even higher in the next few years.
What do you think, does this seem logical? Time to buy more I think
There really is very very very little Wall St. money in Bitcoin right now. Money from Wall St pouring into bitcoin will actually stabilize the price, and hopefully, create slow and sustained long term growth. I would love to see Bitcoin grow at a rate of 10-12% per year rather than fly up and down like it does now.
I wrote a post sort of related to this: http://www.demoinvestor.com/articles/00000001
Basically Bitcoin investors are mostly retail investors with weaker hands. It needs institutional investment before it can stabilize and actually be used as a currency rather than an investment or vehicle for transferring money. Right now, it is not a currency.
That is a very good point. The reason we are having price spikes in exchanges(rise and fall by 300 usd in a day) is because we dont have enough trade volume to make it more stable. It would be great to have 3 or 4x the trade volume in exchanges and that would make it so btc only swings by a hundred or so on a given day. And maybe it would help with the long term rise too, which if it does it looks more attractive and "safe" to investment money pouring in.
