Post
Topic
Board Economics
Re: Higher price. More people should sell.
by
Anth0n
on 12/02/2013, 16:33:47 UTC
What is reason you are not selling?

My strategy is based on a long-term bull perspective.

If I believe that prices will rise in the long term while fluctuating up and down in the short term, then my strategy is to just buy more when the price goes down because I believe in the long run it will go up again. If I sell now and I think it will go up in the long run, then I'm going against my own predictions because I'm selling before it goes up (i.e., I'm selling low). But if I buy after it goes down, then I'm buying before it goes up (i.e., I'm buying low).

I've had the same strategy from when the price went from $3 to $31 and then back to $2 again, and it's been pretty successful. At current levels, I'm not selling, but I'm not buying anymore.

Once we see the next price crash (it WILL happen, not necessarily from $31 to $3 but could be something like $50 to $20 or infinitely more possibilities), I'll just buy more.

Why will we see a price crash? Because unlike a real free market commodity, the number of coins created is unchanged regardless of demand, so price stability is impossible. Still better than paper currencies though.