Has the puff gone out of Bitcoins sails?

There are people who got into Bitcoin at the peak of around $20,000 and are now feeling nervous. There are people who bought in at $12,000 believing it will go back up to $20,000. There are people who claim to understand what drives Bitcoins price and know when to get in and when to gt out. Well, here at cryptobebe we are Bitcoin. Please note what is discussed here is my own personal opinions and should not be taken as financial advice.

Bitcoins meteoric rise to prominence has been nothing short of a miracle in itself. A grass roots development project by an unknown person that has taken on value. Bitcoin has spent nearly decade now building up trust and has matured into a trusted form of money for many that is built around the blockchain. It has moved from something of no value to something of value with a single coin worth more than gold. Far from being a flash in the pan boom and bust product or a pump an dump it has shown rapid growth. Normally such rapid growth is associated with a price bubble but this might not be the case with Bitcoin. Lets look at it this way. If Bitcoin was a house and the house value was to go down around 50% in less than 6 months it would be considered a housing price crash. If Bitcoin was a stock and it went down around 50% in less than 6 months it would be considered a stock crash. So looking at Bitcoin as a new asset class from the outside without knowing anything about Bitcoin it is logical an acceptable to make the claim it has crashed already. Naturally what is considered a crash is very subjective. One mans crash is another mans price correction.

The question we have to ask ourselves is can Bitcoin continue to grow or has the puff gone out of its sails? The answer is it will continue to grow if it finds new use cases and new customers. For any asset to grow in value it need demands. Demand for Bitcoin remains strong currently but new user growth is questionable. If one could measure new user growth for Bitcoin the way one views the non-farm payroll (NFP) job figures in the US to see how well the economy is doing, then one could get a better picture of Bitcoin new user growth.

Most people entering crypto face the psychological barrier of seeing the previous and current price of Bitcoin and deciding whether they should invest. Having spoken to many new entrants to cryptocurrencies they all tell me they find altcoins more interesting as their is more potential for greater price rises in percentage terms. Many believe buying into an altcoin at a few pennies on the dollar is far better than buying Bitcoin. Many feel they have already missed the boat with Bitcoin. That is a natural psychological belief that Bitcoin is already too expensive and they don't see there money doubling anytime soon. Not one person I have spoken to has ever considered the altcoin they invested in might not be around or could collapse in price and vanish. For them it is blind hope, with no homework done, that the coins will replicate the glory of Bitcoin.

However, something comes to mind when you don't do your homework......BITTTTCONNNNNNNEEEECCTTTTTTTT! OK my bad? So many of these people do not do there homework and will get wrecked sooner rather than later.

(coinmarketcap.com)

Yes, we all saw what happened to Bitconnect. It's price fall was not even a slow steady downward ski slope. It was a cliff edge fall in price from over $400 to under $2 and with zero chance of recovery now. This has not happened to Bitcoin and is very unlikely to happen any time soon. Why? Like I said already demand for Bitcoin is still there.