On January 29, 2021 Bitcoin worth $3.7 billion in options is set to expire. The increase in the price of the Bitcoin helped in the boom of the options market. Despite the recent volatility, investors are confident about BTC.
For clarity, Bitcoin options are contracts which provides the investors with the right to buy or sell the cryptocurrency at a particular price. However, there is no obligation they have to buy or sell at that price. They can either execute their right or not. Investors make money by betting on which way the price of the Bitcoin will go and therefore they are able to make profits if they are right without having to actually trade the Bitcoin.
The interest in the number of investors who we willing to bet in the price of the Bitcoin price go high or low has increased after the recent price volatility.
The wild ride of Bitcoin is documented as follows: 2009 – Inception; 2010 – no bid; 2011 – $0.31 – $1.6m; 2012 – $5 – $39m; 2013 – $13 – $102m; 2014 – $784 – $10B; 2015 – $315 – $3B; 2016 – $433 – $6B; 2017 – $1k – $10B; 2018 – $14.6k – $250B; 2019 – $3.9k – $67B; 2020 – $6.9k – $135B; 2021 – $34k – $625B.
Bitcoin Options + Derivatives education is becoming a thing in 2021 more and more people are interested in getting in to it. Bitcoin awareness is getting better every day.
Investors are beginning to understand the seasons and cycles in the cryptocurrency space. It is like sowing during the bear market and reaping during the bull market. Smart traders know how to optimize and balance their trading decision to ultimately own a bullish portfolio.
Bitcoin For Rational Investors
As Michael Saylor states, there is a lot to think around Bitcoin like Economics of Dirty Money, Toxicity, Jedi Mind Tricks, Inflation, Interest Rates, Darwinian Competition, Stoicism, Humility, Focus, Decimation, Ethics of Action, Terrifying Natural Beauty, Vitality, Equilibrium, Engineer vs. Zookeeper, Ecosystem Collapse.
Further Michael reinstated that for rational investors who are holding Bitcoin as a store of value speculations and rumors about stable coins, alt coins, exchanges, & CBDCs as being irrelevant.
It is very obvious that the rapid growth and high volatility of Bitcoin are indicative of that BTC is becoming bigger, stronger, more anti-fragile than any kind of existing human created systems.
