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The crypto space is so new that there aren’t even that many “investors”. There are more “experimenters”.
BTC is a risk asset- period: full stop. It’s not an inflation hedge (yet). That’s a narrative about what it could be in the future. If you have a low-cost basis in your “never sell” cold storage bucket- no worries. if you are position/swing trading – don’t fight the fed.
BTC went from the intended P2P value transfer to store of value and inflation hedge for anyone who has held it for at least 3-4 years. Even Satoshi did not envision the advent of tens of thousands of altcoins, tokens and stable coins after his disappearance. Traders lose more than gain with BTC.
We should put our money into something with potentials like fiat or gold. The real question is where are these investors putting their money after they pull out of crypto when rates go up.
The problem is no new money coming into Bitcoin due to liquidity tightening— Hodlers have not been dumping/trading — Bitcoin network growth sideways/stagnant.
If Bitcoin is just going to follow everything else, what’s the point? People are forgetting why they bought in.
We still need the banks to buy Bitcoin. So, the price goes to the moon.
Both can be true. And here’s why. It’s about figuring out a good entry point in terms of USD. Long-term, all fiat currencies will debase or crash completely and it’s about being able to predict that for a good entry point.
Sadly, the top 10-25 coins are firmly controlled by banks and whales already which defeats the purpose of their original intended use.
Distribution is not a factor of decentralization in the POW system.
Banks and whales bought up a shit load of bitcoin and use algorithms to control the price the same as they have been doing with the stock market for years.
Price control has no effects on the operation of the network. 1btc = 1btc needing no permission from any whale or banks to transmit. Still the same thing it’s set out to do from the beginning. PoS on the other hand is what you are talking about.
When big banks collectively coordinate the buying or selling of bitcoin it does affect the price.
And the point is if you want to call manipulation, you are missing the point of 1btc = 1btc. Gold was manipulated coz it’s hard to take delivery of gold contracts. Banks and brokers took advantage of that. Bitcoin has no delivery and security problem; it’s building the protocol.
If the Fed raises rates, prices will rise. That will make faith in bitcoin stronger.
