Home Bitcoin News Bitcoin is Forever a Risk on Asset with the Mirage of Price Going Up Forever

Bitcoin is Forever a Risk on Asset with the Mirage of Price Going Up Forever

Bitcoin is Forever a Risk on Asset with the Mirage that the Price is Going Up Forever
  • BTC Price Mirage will go up forever
  • You never enjoy BTC investment until you realize your profits
  • BTC investment for short-term is 4 years long-term is 10 years
  • Holding BTC Forever Earning Nothing Forever

Bitcoin is a “risk on” asset.  All cryptocurrencies are “risk on” assets.  The higher the risk, the better the return.  And, so Bitcoin – its value and return.  The potential for ROI with Bitcoin depends upon the entry price and exit price.  BTC has profit making potential due to volatility.

No body is going to enjoy BTC unless they enter at a low price and sell for a profit and in turn use profits for some advantage.”

The price of BTC will continue to fluctuate.  The returns achievable are not the same for everyone.  There are those who were able to get BTC for very low prices.  When we look back in to the BTC/USD price history it was as low as “0.”

Gradually, as more and more people began adopting BTC, the price of BTC increased gradually.  So, what makes the price of BTC move?

Famous Bitcoin investors are confident about holding BTC.  They are giving long narratives about why they think BTC is the way.  There are Michael Saylor Videos everywhere and he keeps explaining why BTC all the time.

How to determine the fair market value? It creates a mirage that it is going up forever.

Does it have an intrinsic value?  What is the market value?  How to determine the What are the things the market looks at as being apt to determine the digital coin’s fair value? How to decide if it is worth it?

When the BTC price goes down, billionaire investors who have the power to hold are not easily shaken.  Billionaires invest discretionary value in BTC and they are not shaken by price volatility, whether the price goes up or low they are able to maintain their cool and composure.  However, retail investor psychology is different.

Bloomberg Technology expressed: “This current crypto winter doesn’t have Michael Saylor feeling all that cold.”

Also, Michael Saylor has stated, “If you are going to invest in Bitcoin, a short time horizon is four years, a mid-time horizon is ten years, and the right time horizon is Forever.”

Investment decision making by a retail investor is different from that Billionaires.  There is a great degree of rationality exercised in the decision making.  There are psychological and emotional factors running in the investors mind after investing.

So, how investors judge, predict, investigate and review their decision making before they put their money in differs through bearish and bullish trend in the market.

Investors put their money in and hold it for a particular time frame and the ROI is either positive or negative when they cash it out.  It is as simple as that.   However, the bulk of judgement, prediction and investigation is done based on political processes, economic processes and a range of other dynamic stuff.

Contrary Statement from Peter Schiff:  “Warren Buffett buys stocks that pay dividends and grow their earnings, so they can raise their dividends. So, he gets paid to hold forever. If you hold Bitcoin forever you get paid nothing forever. Forever is a long time to earn nothing!”

The decision-making process about whether to invest in BTC and whether to hold BTC or sell BTC is a continuous process.  Depending upon the results, the reaction and perception of the individual investor differs.  And, there is copy trading happening most of the time.  So, a market trend is formed.

The aggregate sentiment of all the market actors at any point in time determines the market movement – price movement of BTC.  This is not easily explained by fundamentals.  There is nothing called a realistic explanation, completely well-managed risk, best trading plan – BTC trading is a game where you are in for as long as you have money to spare.  If you win you are lucky or maybe you did your best in the dynamic decision-making process of whether to hold or sell.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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