RE: Why I Buy Bitcoin During Crashes Despite Calling it a Bubble

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Why I Buy Bitcoin During Crashes Despite Calling it a Bubble

in bitcoin •  7 years ago 

So BTC has retraced 61.8%. At what point do you consider a bubble to have popped? Blockchain will be the future, just like the internet was to be after the dot come bubble. Bitcoin will have every chance to be the biggest part of that due to the ingrained network effects of being first. The tech isn't there yet, and maybe lightening isn't the answer, but it is the first try.

I am personally laddering buys, trading on some volatility. I did not HODL BTC like many. Got stuck in many alts, but luckily most of those were projects I intend to long term hold anyway. Only a few short term trades have I gotten stuck in.

I watch my investments closely and saw an opportunity to sell a top with potential to buy back at the bottom. I am doing that now.

I am all-in on the tech, and social change potential in crypto. I am also very optimistic that BTC will be a huge part of that future.

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  ·  7 years ago (edited)

When bubbles pop, you're looking at a 95%+ drop, obviously this is just a rough number. With highly volatile markets like this 61.8% is just one of those rainy days that come once in a while, it isn't anything to be really concerned about unless it drops even further.

Bitcoin will not have a future period. There are so many altcoins that have better capabilities than bitcoin that do the same thing and once objective reality hits, we will see a digression from bitcoin being in the spotlight. On an even broader note, there is absolutely no future for any coin (at the moment) which global governments will adopt as a system of exchange.

Firstly, there's very little wrong with current banking methods.

  1. Many coins (including bitcoin) are trying to fix a problem that doesn't exist, in a much poorer fashion. I would much rather use a centralized payment method like Paypal to avoid the high fees, time and frustration for the lack of customer support.

  2. The problems that currently exist for banks (I.e. transaction time for wire transfers) can be fixed by an internal solution as opposed to adopting something like Ripple. Banks rarely use third party creations as opposed to their own and I dont see why they cant and wont do something similar in the future.

Further, government regulations simply wont allow it. We have seen multiple governments trying to remove cryptocurrencies from main circulation in the economy. This won't change in the future.

What about Japan one of the largest economies in the world having accepted bitcoin as legal tender?
Smart forward looking governments are welcoming innovation in the crypto sphere see Switzerland, Belarus, Estonia.
You mention Paypal whose own founder says that it has not delivered on his original vision. Moving money around with Paypal is slow and costly.

One of the largest economies in the world is still quite an underrepresentation in a fully global contrxt for what adoption really should be right now to command the prices that it is even factoring in other aspects of the coin. Of course like everyone I cannot explicitly define an exact value but considering that many have tens of billions of dollars in valuation is quite ridiculous especially if you try to compare it to the value companies who have similar market caps bring to the world.

Unless America or larger economies in Europe start to welcome the idea, I remain fully committed to my stance.

I appreciate your thoughtful response. I will say that I will just agree to disagree with you on most of your points. I make it a rule not to attempt to debate people who are certain about anything, so I won't try now.

I was insinuating that this isn't actually a bubble by the way. I think when the market rebounds in short-order the proof will speak for itself.