Re: Why is a constant rise in the price of Bitcoin, important?

Quote from: Kakmakr on May 16, 2018, 06:08:26 AM

Let's say you bought a bitcoin for $1000 in January 2018.

So you have to beat inflation and also the performance of other investments to say that your Bitcoin investment was a better investment, than other alternative investments.

Let's say your inflation is 5% and your best return on some other investment is %20 per year, then your Bitcoin price increase will have to be more than %25 to beat the alternative investment.

Let's say you hoard for 5 years, then you would need a price increase of 125% to beat your alternative investment returns over 5 years.

So we cannot have a price increase of 800% in year 1 and then a price decrease of %400 in year 2 and another price decrease of 200% in year 3 and so on...

Hope you get at what I am saying. Hoarding might be harmful to your profits, if you do not cash out SOME profit on the ATH. Wink

..... You might end up with a bitcoin worth $100 in year 5. Roll Eyes

From year to year the price keeps on rising, but thats due to the rate of demand and supply and increase in the number of investors. There are lots of people who are investing in Bitcoin and their number keeps on increasing, thats the reason why price keeps on increasing. But I dont really know if thats good idea, but anyway that has been the way for many to make profit and you cant change that.