It is not important. Moreover, it is harmful. If price raises all the time - you will simply hold it. If everyone holds or trades (sell and buy bitcoin to gain profit) just because it is stupid to sell it for less when you know it will cost more tomorrow - it will make the bitcoin totally useless (money to make more money).
If you don't understand this - I am really sorry, but seriously, don't you see the benefits of blockchain apart of growing price? Not stable currency cannot be used in economy or trading.
Topic: Why is a constant rise in the price of Bitcoin, important? - page 10. (Read 944 times)
Let's say you bought a bitcoin for $1000 in January 2018.
So you have to beat inflation and also the performance of other investments to say that your Bitcoin investment was a better investment, than other alternative investments.
Let's say your inflation is 5% and your best return on some other investment is %20 per year, then your Bitcoin price increase will have to be more than %25 to beat the alternative investment.
Let's say you hoard for 5 years, then you would need a price increase of 125% to beat your alternative investment returns over 5 years.
So we cannot have a price increase of 800% in year 1 and then a price decrease of %400 in year 2 and another price decrease of 200% in year 3 and so on...
Hope you get at what I am saying. Hoarding might be harmful to your profits, if you do not cash out SOME profit on the ATH.
..... You might end up with a bitcoin worth $100 in year 5. 
So you have to beat inflation and also the performance of other investments to say that your Bitcoin investment was a better investment, than other alternative investments.
Let's say your inflation is 5% and your best return on some other investment is %20 per year, then your Bitcoin price increase will have to be more than %25 to beat the alternative investment.
Let's say you hoard for 5 years, then you would need a price increase of 125% to beat your alternative investment returns over 5 years.
So we cannot have a price increase of 800% in year 1 and then a price decrease of %400 in year 2 and another price decrease of 200% in year 3 and so on...
Hope you get at what I am saying. Hoarding might be harmful to your profits, if you do not cash out SOME profit on the ATH.
..... You might end up with a bitcoin worth $100 in year 5. There's a lot more to it too! There's a whole psychological component as well. People were inclined to invest in Bitcoin during the ATH run because they saw it going up so much. They decided that they could hop on the train too, so that's exactly what they did. However, when people see this coin hovering at the same spot/dropping a little bit, people get scared. They pull their money out, and they also tell everyone else they know to do so as well. In this case, there's not as much of a push to drive the price back up, so the coin has to fight this resistance. Since BTC is governed by the people who invest in it, this can have major impacts on the price. It's a weird cycle in a sense.
I think this market do not work base on this analysis you put on and from history you can see that we have been having steady progress for the past five years. We are not going to have any of those dump consecutively in five years and holding is the best ways for you to actually make money in this market. We are going to have a normal assets price from now on.
to know when to enter or exit we must have a sharp analysis. that's what it takes to get a lot of profit. because of we can not control the market by lowering the votality or raising it. so we have to cleverly take advantage of the opportunity
Definitely its very important for the price of bitcoin to increases more because it has a big advantage for the whole cryptomarket to celebrate the biggest capital they want to earned if the investors will soon to withdraw there investing and also others who are believe that value will soar up high up to the highest pick of speculated valued is concern and there goes a volatility which easily down the world value to due excessive selling of bitcoin in a market.
If there will be things like that, we will prefferably choose to buy bitcoin, knowing that it will grow, like some bank deposit.
You are partially right about this,but bitcoin is not stocks.In the financial world more risk=more profits.
With the higher btc volatility,all the crypto investors are taking a way higher risks,instead of buying and holding stocks and obligations.The constant rise of the btc price is impossible,but a lower btc price volatility
is impossible as well.
With the higher btc volatility,all the crypto investors are taking a way higher risks,instead of buying and holding stocks and obligations.The constant rise of the btc price is impossible,but a lower btc price volatility
is impossible as well.
The trick is to manage that risk, and not just gambling on the outcome. One of the methods to manage the risk is to determine when it is the opportune time to exit and to sell a percentage of your profits to reach a good ROI. For this to happen, the price of the coins that you bought, would have to increase to a price point higher than the purchase price.
This price point has to be high enough for the investor to be able to beat other investment options and this is why we need a constant increase in the value of the coin. People will lose interest, if the price continue on a downward spiral or even a long stagnation in the price.
You are partially right about this,but bitcoin is not stocks.In the financial world more risk=more profits.
With the higher btc volatility,all the crypto investors are taking a way higher risks,instead of buying and holding stocks and obligations.The constant rise of the btc price is impossible,but a lower btc price volatility
is impossible as well.
With the higher btc volatility,all the crypto investors are taking a way higher risks,instead of buying and holding stocks and obligations.The constant rise of the btc price is impossible,but a lower btc price volatility
is impossible as well.
I am not really sure I get your point here. If you have an initial $1,000 invested, and you get positive returns every year, how can you end with just $100?
I do agree in cashing out from time to time, especially in ATHs.
I do agree in cashing out from time to time, especially in ATHs.
This should not be too difficult to understand. You buy at say $1000 in year 1 and the price drop with 50%, then you are left with $500. Then it drops with another 50% in year 2 and you are left with $250 of your initial investment.
If you invested that $1000 in some traditional investment and you received say 20% in year 1, then you would have had $1200 by the end of that year and $1440 in year 2 and so on...
The best strategy would be to take profits in whatever year the price of Bitcoin reach a ATH again, to secure your profits. You should not just follow a blind "hoarding" strategy, where you hope that the price will be much higher than what you might have received from an investment in a traditional investment with a fixed return.
I took profits last year, when the price skyrocketed to a ATH, so my profits are locked in. <800% in 1 year> So, even if the price decrease now, I would still have recovered my initial investment with some good profits.
I can lose all my money invested into Bitcoin now and I would still be in the green, because I cashed out the profit on a ATH.
Hope you get at what I am saying. Hoarding might be harmful to your profits, if you do not cash out SOME profit on the ATH. ..... You might end up with a bitcoin worth $100 in year 5.
I agree with what you are saying. I remember someone here from the forum said the same thing and that made me realize that I should enjoy and take some profits. ..... You might end up with a bitcoin worth $100 in year 5. This isn't an investment used to be but to take profits and enjoy during the ATH is what others are forgetting. The fact that everyone is becoming greedier due to the potential that we can see to bitcoin but at the very end of it, we fall. There's nothing wrong in holding but don't forget to take your profit.
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I am not really sure I get your point here. If you have an initial $1,000 invested, and you get positive returns every year, how can you end with just $100?
I do agree in cashing out from time to time, especially in ATHs.
I do agree in cashing out from time to time, especially in ATHs.
The rise of bitcoin is driven by many factors. In the end, the rise of BTC prices is due to the increasing perfection of its investment attributes. BTC no breakthrough in usage scenarios, but as an investment, BTC has already is an important investment target, whose nature is more and more like gold, its use value is no longer important, important is its increasingly recognized as an investment.
Let's say you bought a bitcoin for $1000 in January 2018.
So you have to beat inflation and also the performance of other investments to say that your Bitcoin investment was a better investment, than other alternative investments.
Let's say your inflation is 5% and your best return on some other investment is %20 per year, then your Bitcoin price increase will have to be more than %25 to beat the alternative investment.
Let's say you hoard for 5 years, then you would need a price increase of 125% to beat your alternative investment returns over 5 years.
So we cannot have a price increase of 800% in year 1 and then a price decrease of %400 in year 2 and another price decrease of 200% in year 3 and so on...
Hope you get at what I am saying. Hoarding might be harmful to your profits, if you do not cash out SOME profit on the ATH. ..... You might end up with a bitcoin worth $100 in year 5.
So you have to beat inflation and also the performance of other investments to say that your Bitcoin investment was a better investment, than other alternative investments.
Let's say your inflation is 5% and your best return on some other investment is %20 per year, then your Bitcoin price increase will have to be more than %25 to beat the alternative investment.
Let's say you hoard for 5 years, then you would need a price increase of 125% to beat your alternative investment returns over 5 years.
So we cannot have a price increase of 800% in year 1 and then a price decrease of %400 in year 2 and another price decrease of 200% in year 3 and so on...
Hope you get at what I am saying. Hoarding might be harmful to your profits, if you do not cash out SOME profit on the ATH.
..... You might end up with a bitcoin worth $100 in year 5. Jump to: