Those who understand Bitcoin have the grit to stick to it through ~85% drawdowns.
Bitcoin has to continually find “new” buyers to push the price higher, right? On that we can agree.
Since there’s no way to properly value Bitcoin, the price is just determined by money flows. More buyers than sellers = prices goes up. More sellers than buyers = price goes down.
Bitcoin itself has close to zero value.
Some day there will not be a continuous flow of new buyers pushing prices higher and higher. I don’t know when that day will be, but it must happen, eventually.
And technological innovation is Bitcoin’s enemy. As new cryptos go mainstream and get widespread adoption and achieve most of the characteristics of Bitcoin…..and more, well, what then? Bitcoin may be limited, but crypto currency is unlimited. Infinite. Betting that Bitcoin will increase in value forever is a bet against innovation. That bet always loses. Always, eventually.
Bitcoin is just computer software. All the current holders of Bitcoin want it to remain dominant and increase in value. But, they gotta keep convincing others to get on the Bitcoin train.
Dogecoin going to $50 billion in valuation doesn’t help any thinking person believe Bitcoin is not in a massive bubble. Dogecoin is ….. well, worthless, sorta. Right? Right?
Common sense says the Bitcoin bubble must pop, and probably deflate down to near zero. That’s how technology works, it destroys and replaces what came before it. |
