Disclaimer:
This is for educational and reading purposes only and should not be taken as an invesment advice. This is not a financial advice and I am no financial advisor. Consult your own financial advisor or do your own due diligence before making any forms of Bitcoin or cypto investment
First, to understand the idea of Bitcoin game you should know by now that it is a limited quantity asset that circulates the world again and again.
As we speak 18 Million has been mined into existance, 4 Million has been lost already (by careless owners) and 13 Million in circulation around the world.
Unlike all other valuable assets being traded physically all over the world like iphone, macbook, condominiums, sports cars and expensive nike shoes all of these can be replicated and duplicated by factories if the market would still demand for it.
So let’s say there’s a limited quantity of iphone X coming into the Philippines, of course the first batch would always be the most expensive since the demand is bigger than the current available supply, but after a few weeks or months of more iphoneX being produced in China eventually the market will be saturated with a lot of Phones and prices will return to normal and later on it will be cheap because a lot of people already have iphones and a brand new model is about to come out anytime soon.
So with the iphone game the first buyers of iphone may change his mind to be a seller because he can sell it for a higher price than he paid for it and the last buyer will be the loser of the deal if he bought an iphone X and the next day the new iphone 11 or something comes out of the market.
In the Bitcoin game it is tooooooootally different!
Why? Because as I mentioned it is only 13 Million that circulates the globe everyday.
My best analogy would be the sand glass timer, it follows the same limited quantity model no matter how many times you turn it, it will always be the same quantity.
Think of one side as the buyers and on the other side are the sellers,
Just last week there was the tail end of the buying demand creating a massive FOMO (fear of missing out) pushing the market price higher than 40% than market rate.
Understand carefully, the business in Bitcoin for traders is not the Market Price, because some traders they do not buy Bitcoins unless they have a buyer, so they buy it at a certain rate and passes it at a higher rate based on market demand.
So to simplify it let’s say getting bitcoins now at +4% on top of market rate is very good
and buying Bitcoins at +40% on top of market rate is just crazy (this is what happened in Korea just 2 weeks ago).
After 2 months straight that the mark-up rates where around 5 to 8% in the Philippines the tail end of the buyers pushed the demand all the way to 25% and somewhere like 40% in Korea and it definitely felt that there was a massive FOMO building up.
I thought that the FOMO would never end,
My suppliers of Bitcoins ran out 2 months ago.
My suppliers later on asked me if I have Bitcoins because they have a lot of buyers going crazy on their end
I started buying expensive Bitcoins in the market just to have something to sell to people who are looking and panicking to buy
I was buying Bitcoins for 12% that I get to buy 4% back then.
(To be honest, I was actually caught in the FOMO myself and bought Bitcoins during the panic rush, I was buying all Bitcoins not sold at the end of the day hahaha)
Then all of a sudden the train stopped, the market is over-bought and people now are unloading their Bitcoins for some reason.
So what happened after that?
Lo and behold, just 3 days ago, my suppliers have Bitcoins again at a cheap rate hahahaha
My suppliers are not buying anymore
Market demand quieted down
How to understand everything I shared?
This depends if you are just a buyer and long-term holder or you are an investor and wants to make money in short-term holding of Bitcoins.
Will the price go down for Bitcoins?
In my opinion NO, Why?
Bitcoin price will never go down, because if it does there are another type of investors who missed the low price before that are just waiting for the market to dip so that they can invest more of their assets into the cryptocurrency space.
It depends on your vision and perspective if you want to make money investing in Bitcoins.
If you want to make money through Bitcoin trading Buy and Sell in the Philippines I just explained to you the key indicators on what to look at when it is a good time to buy:
Don’t look at the market price, check the sellers rate on how far it is from the market price and check if the global market is quiet.
Always remember that the Bitcoin buy and sell game is just cyclical, because AGAIN it is only 13 Million going around the world and like a sand glass timer it is just a matter of time when the Bitcoin quantity is nearing the tail-end when people will start go crazy again for the prices.
Winners and Losers?
Winners are always the first buyers because they bought when the market was quiet
Winners are the first buyers because they got Bitcoins at a very low rate on top of market price
Winners are the first buyers because they became sellers when the market price peaked
So why am I sharing this story?
Because I just completed my first cycle last week and I finally understood how it works,
I’ve been trading and selling Bitcoins since the start of the year and only last week that everything came full circle.
So what’s the next step for me?
My investors took a heavy investment on Bitcoins yesterday using the calmness of the market as an indicator and seeing the mark-up rates of suppliers really low.
Now once the market picks-up again, I will wait for the tail-end of the buyers when market goes crazy and that’s the time I will inform my investors to start selling their bitcoins when the market pushes the price again (don’t worry about Filipinos buying expensive Bitcoin guys, Bitcoins can be easily sold anywhere in the world)
Note: I shared before I just buy and hold bitcoins, so why am I selling?
I am not selling my Bitcoins I really buy and hold them even if you ask my team.
I have investors now who only care about their pesos and not the Bitcoin amount so the ones I’m going to sell are their Bitcoins because they just want to make money in the process.
By the way for all those who are asking, I don’t trade Bitcoins on online exchanges it is too risky and I’ve lost money because I cannot time the market properly.
I make a simple money doing arbitrage sales and short-term holding of Bitcoins for my investors.
After reading Warren Buffet quotes all this time I finally understood what he meant by
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
Important Disclaimer:
MOST IMPORTANTLY IF YOU WILL INVEST IN BITCOINS FOR SHORT-TERM GAINS MAKE SURE YOU ARE A BELIEVER OF BITCOINS AND CAN HOLD BITCOINS FOR THE LONG-TERM.
Do not go into Bitcoin short-term investing if:
#1 If you are not a Bitcoin believer for the long-term
#2 If the money you are going to use will be needed for the short-term
#3 Do not invest when you are highly emotional
#4 Do not invest if you have no knowledge and experience in investing
and as what they always say
“Do not invest something that you cannot afford to lose”
Disclaimer:
This is for educational and reading purposes only and should not be taken as an invesment advice. This is not a financial advice and I am no financial advisor. Consult your own financial advisor or do your own due diligence before making any forms of Bitcoin or cypto investment
If you want to know more about Bitcoins I’ve written several FREE articles that is a must read for all Bitcoin beginners, visit my website www.bitcoinsmeetup.com and scroll to the bottom to check this valuable free articles before getting started.
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