Post
Topic
Board Economics
Re: The end is near
by
xavier
on 17/07/2013, 14:59:40 UTC
This has nothing to do with the end of bitcoin, but about things that are going to cause problems for the regular investor. I have been thinking about this for a while. Before starting, I assume the price of bitcoins has been lifted due to speculation.

First, the people selling asic machines in return for bitcoins are going to destroy bitcoins for a period of time. Think as a seller. You sell a bunch of miners for bitcoins and let the people attempt to reap the rewards of mining. Once price rises enough, you sell out and reap the benefits before miners can. What perpetuates the price rising is early adopters who spread word of their earnings bringing in more people who want to get rich. In order to sustain the price and continue rising, you need more people to invest in the currency and believe in it. once influx of people come, this is where as a seller of machine i'd sell out or the next big wave.

It is the greed in which people want to earn money that will make this system fall faster because everyone will invest in miners and coins and watch them rise. Which it will, no doubt, but at who's expense? You and me the regular investor. It's the same in stocks or our own market. Remember this - when everyone believes they can make lots of money, that is when you get worried. All it takes is one bomb (mass sell off) to start and then rest of the disaster starts. As many investors tell you - MANAGE YOUR RISK.


I'm sure most of this has happened already, in April? There seemed to be endless posts on the forums about how people were going to be the "new elite", how the price was going to $10,000 , etc.

Now it seems that we have the opposite, many threads about how price is going to $30.

Personally, I have remained bearish about bitcoin price in recent months but given these endless negative postings, I'm beginning to wonder whether this could still be a buying opportunity.

Having said that, the number of transactions on the network has crashed recently - but this could just be due to speculators loosing interest.

I'm not sure about the situation with ASICs. The whole thing sounds incredibly dodgy, there has got to be a scam there. However, this seems like a side show. How is it going to affect bitcoin (ie. the bitcoin protocol) itself?