Topic: Why we need price crashes and panic selloffs - page 8. (Read 1345 times)

We can't blame Warren Buffet for his era. Yes We're in 4th industrial period and i would love to see what cryptocurrency looks like 2 years from now. after Halving some coins will eventually fall down. I will be happy that those coins who has a real use will stay and some of them will fall, One thing for sure there are Crypto enthusiast that holding good coins and probably they will hold it for long term.

And I would say you definitely have the right to be bothered or even get worried. You don't see the reason because you are searching in the wrong place or rather at the wrong time. You are looking for explanations in the stock market of today but you should sooner be looking in the stock market of the dotcom era. The cryptoverse today is much more like the dotcom bubble of late 1990s than it is like today's stock market. Bitcoin as well as other cryptocurrencies are just too speculative without any real value in Warren Buffett's terms to support their price in the long run. Stocks, on the other hand, have at least some value because companies behind them are producing real shit, not just vaporware as it was with dotcoms back in the day and now with cryptocurrency coins and tokens.

It seems to me that the reason for the large volatility of the cryptocurrency market is the unification of the cryptocurrency and Fiat markets. Dollars has long been captivated the whole world. There are many people who have a large number of unsecured dollars. They can always have the opportunity to buy crypto-currencies in large quantities and to manipulate that market.

Well that is impossible because bitcoin can never crashed in other to rise or redistribution of bitcoin the technology behind bitcoin has made it impossible for it to be control and the only thing that can affect it price is either low demands because bitcoin operate on the economy law of demands and supply and at that as time goes on bitcoin get more popular and get generally accepted.

Canis, your thinking is valid and you got a point. You are thinking out of the box, I like that.
However, I think you got it just a little bit wrong. Yes, if speculators want big profits it is indeed beneficial to them for the market to correct (this should be the right term, not "a crash", a crash means that the market went past the possibilities of a quick recovery and it never happened with Bitcoin, at least not so far). It is also normal to see the market rise in steps, the market just rising up is an ideal that cannot be reached in the real world (although Bitcoin's run from the end of the last year was crazy.

What Bitcoin needs is for the weaker hands (Poker expression is deliberate) to leave the market thus leaving only the strong holders - albeit corrections this actually stabilizes the market. You can consider the market mature only when it stabilizes and that would mean that generally only strong holders are left and the 1-5% percent of weak holders and daily speculators cannot hurt/destabilize the market. The current situation when you have the market reacting to almost every news out there shows us that Bitcoin is far from maturity and that is the ideal situation for experienced investors to take opportunities and take all the money from the fish (Poker expression is deliberate yet again).

2018 the start has being shaky and prices have dropped mostly than the rise. this has happened over the years that in beginning of the year the price does not rise much and later as the year progresses we start seeing the price jump and suddenly btc crosses 15 and 20k is also possible in coming time.

Yes I do think you have a point. The rising of the value of bitcoin could somehow be because of the them who do the panic selling. Some investors who at the time when the price drops take it as an opportunity to buy the coins and when everything is bought the supply is lowered again so that the prices rices also. During such time as the price goes high, the investors then analyzes the market for the right time for them to sell their coins again not at a losing point but when the price is really high. So as a general conclusion in this BTC will always be a roller coaster ride. Up and down crashing and dumping and yet again rises up just to fall endlessly in the pattern. Which gives the reason why it is so volatile.

BTC is easy to attract new investors when the price is low!

They will listen to some experienced investors and buy some BTC when the BTC is below $10,000! The market has new investor, only has the possibility of rise!

When it comes to bitcoin and the price movement,it all depends upon the news coming out of a country,if the news is negative the price will go down and so on,it is entirely dependent upon current events and anything can happen at any given time,there is a massive sell off from the old MTgox and i think that is holding the market down for a while and it might continue like this for a while.

I didn't mention manipulation, but this is actually one of the big actors in forcing prices to go down so that whales can fill their bags again, after that they have dumped at ATH.

It can be said that investors come (and go) in different styles and colors. There are value investors like Warren Buffett and there are speculators like George Soros. Neither is much pleased with Bitcoin. And there are people like the Winklevii twins who consider Bitcoin as the future. So it all depends on your attitude regarding your investment goals and ideals. For the Warren Buffett type of investor Bitcoin is of no use and value because there is nothing in it which would reliably produce value in a dozen years. Soros says that Bitcoin volatility is just too much for a currency. The point is you can't really expect everyone to be happy with Bitcoin price fluctuations.

I'm more interested in the causes of these failures. When the stock market falls, there are reasons for this. It is possible to analyze this phenomenon and to make some predictions. But I can't see the reason for the bitcoin price drop. It bothers me. Of course I also do not like a long period of price decline, but this is not the most important for me.

Definitely right that nothing in the market will have a straight upward movement and everything must be in balanced. Therefore, it's normal to have ups and downs that we see in price movement of the crypto. Some people find crashes  an opportunity to buy coins because this is the time that we can make some good profits in the future especially bitcoin.

I agree, crashes and selloffs are all part of the cycle in the market. Nothing in the market will have a straight upward movement. In order for cryptosphere to grow, it is a necessary move to correct itself to prove that whatever FUDs and crashes happen, it will remain resilient and be the future financial system.

I find your analogy between the subprime mortgage crisis of 2008 and what happens in the cryptoverse quite appropriate and fitting. With that said, though, I can't agree that PoW coins should necessarily be more valuable than any other coins in existence today. I'm not very tech literate in this matter but I know for sure that the amount of labor put into creating something has little to nothing to do with its price, even purely theoretically. The price and value of an asset is determined by its utility and usefulness, not by amount of effort required to create or acquire it.

we desperately need them to panic to sell the assets at cheap prices and we buy the coins they sell. better avoid the game of hyp and cloud mining that will make you lose.

Yeah strengthening and weakening prices is a natural thing happening in cryptocurrency market. sometimes a weakening price is needed so that others users can buy and collect more bitcoin for the next pump. maybe the price weakening occurs because of the natural (demand and supply) or occurs due to manipulation. but the point is the declining price is a reasonable thing and may be needed by some users.

Eventually, price crash can be controlled or consider for being manipulated while the sell off are the emotional being of the traders to sell when they saw a big loss on their capital. Significantly, the crash in the price is a cycle and its not a need as bitcoins needs to establish a good and healthy supporting range before it goes up and not that days to spike more upward.

To attract more investors to the cryptocurrency market, it is necessary to have such strong fluctuations that many investors can buy into the crypto that they like. Bitcoin if continuous value over $ 10k then many investors will be very anxious and do not want to invest in it but if bitcoin is priced 4k - $ 5k then there will be more money than buying bitcoin, then new market can grow stronger.

In my opinion it is much better to hold because we all know that the price goes up and down. We dont need to panic selling our bitcoin it is not necessary a good idea because you can take loss and regrets. Have courage in holding your bitcoin to get much profit because it will rise soon which we called as a promising coin in all over the world. Instead of selling those bitcoin , a good idea is to buy bitcoin because the price is down.