HOW HIGH CAN BITCOIN/CRYPTOCURRENCY MARKET GO?
I see a lot of opinions that Bitcoin and other cryptocurrencies are too high and will drop.
But would they? Do you know that there is a limited supply of Bitcoins and many of them were lost in the beginning? So the supply is even lower!
Can we look at cryptocurrency market as Money market/Forex market?
No. There is no central bank which can fix the exchange rate and then with their monetary policy make, for example, inflation higher to make less people unemployment or vice versa.
See these graphs below to see how the markets looks like when there are central banks involved.
After Trump won the presidency, peso plunges. But with central bank it is always easy to get exchange rate back where central banks want it.
Happened not so long ago. The Czech National Bank also ended exchange fixed rate.
What about stock market? Can we compare cryptocurrency market to it? No.
Even assets such as S&P 500 are still making huge gains, but it is all about the sentiment. Because US is doing good then it means US stocks are also doing good. And why is US doing good? Because Yelen said that the FED will increase its interest rates.
We can't really compare it to the financial market. We should see cryptocurrency market as investment to a future. Bright future. This is seriously something we have never seen before.
Cryptocurrency can really change the way we look on our money. We see it nowadays on market capitalizations. A lot of new money is flowing here. And because there is a limited amount of coins and huge potential - in every living aspect - we should see the value surging even more.
Of course we will see dumps of coins. But at least you will know that somebody, company or person, dump them for some reason. Those are the basics of supply/demand graph. And I don't think we will see equilibrium very soon.
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Great post thank you. Makes me wonder just how many coins have been lost, possibly millions in $$$$ worth. I sure could do with a few of the lost ones hahahaha.
With only 16 millions coins with difficulty of 0 at the start of Bitcoin - we can wonder!
I am still in doubt about Bitcoin rising having in mind the issue with the pending transactions. Sooner or later Bitcoin will be substituted by another coin with better technical specifiactions and its price will drop logically. But you are totally right at the following statement: "Cryptocurrency can really change the way we look on our money."
There are some rumours though. It is possible for Bitcoin to fix itself.
https://twitter.com/alistairmilne/status/866458618044002305
Disclaimer: I am just a bot trying to be helpful.
I believe the bitcoin transaction problem is not all bad. This might cause for people to hold bitcoin and turn there attention to alts. I see bitcoin as the gold standard of the crypto currency world.
Okay.